Nel ASA Faces Pivotal Year with New Electrolyzer Platform Launch

Nel ASA NO0010081235

Norwegian hydrogen technology company Nel ASA is approaching a critical juncture in February 2026. The company is scheduled to release its fourth-quarter 2025 financial results on February 26th, a period coinciding with its final preparations for the commercial launch of its next-generation electrolyzer platform. This strategic shift follows a final investment decision made in December 2025 to industrialize the new technology, a move bolstered by EU grant funding amounting to a triple-digit million-euro sum.

The broader hydrogen sector is facing significant headwinds, a reality reflected in Nel's recent figures. The third quarter of 2025 proved disappointing, with revenue declining 17% year-over-year to 303 million Norwegian kroner (NOK). A more pronounced contraction was seen in order intake, which plummeted 64% to just 57 million NOK. Despite this, the company's order backlog stood at 984 million NOK as of the end of September.

Nel's cash position, reported at approximately 1.8 billion NOK, provides crucial financial flexibility as it navigates this transitional phase and funds its strategic reorientation toward the new technology platform. The company's share price has felt the sector's strain, trading between 2.24 and 2.28 NOK in January 2026—a notable decline from levels predominantly above 5.00 NOK in 2024.

Securing the Future: A Major EU-Backed Investment

On December 12, 2025, Nel announced the final investment decision to industrialize its Next Generation Pressurized Alkaline electrolyzer platform at its Herøya site in Norway. This decision culminates a seven-year development program that included successful prototype testing.

Key details of the initiative include:

• Funding: The EU Innovation Fund has approved a grant of up to 135 million euros.
• Target Capacity: The site is designed for a maximum annual production capacity of 4 gigawatts (GW) at full build-out.
• Initial Phase: An investment of roughly 300 million NOK is allocated to establish 1 GW of capacity.
• Launch Timeline: Commercial start is planned for the first half of 2026, with series deliveries targeted from 2027 onward.

The new platform utilizes a fully modularized skid design, featuring prefabricated and factory-tested modules within standardized container skids. This approach is intended to streamline engineering, logistics, and on-site installation. Furthermore, the system's capability for outdoor operation without dedicated buildings is expected to significantly reduce associated infrastructure costs.

Order Activity Amid a Challenging Market

Despite a difficult operating environment highlighted by European energy regulators—who cited high production costs and slow infrastructure rollout as key market barriers in December 2025—Nel has secured several recent contracts:

• A technology provider agreement for GreenH hydrogen projects in Kristiansund and Slagentangen (November 2025).
• A PEM electrolyzer order for the HyFuel and Kaupanes hydrogen projects (November 2025).
• A third order for a containerized PEM solution from H2 Energy (October 2025).

Key Focus Areas for Investors in Upcoming Reports

The upcoming annual report on February 26, 2026, will be scrutinized for clarity on several vital fronts:

Order Intake: Did order flow recover in Q4 2025, helping to replenish the backlog after the significant weakness displayed in the third quarter?

Liquidity Management: How is the cash position evolving following the investment decision? The initial 300 million NOK outlay for Phase 1 will impact the balance sheet.

Project Timeline: Is the company on track to meet its target for a commercial launch in the first half of 2026? Any delay could adversely affect the market rollout.

Forward Guidance: What revenue and order expectations does management set for 2026? The outlook will indicate whether Nel anticipates a market recovery.

Investors can expect further strategic updates at the company's Annual General Meeting, scheduled for April 10, 2026.