Norwegian hydrogen technology firm Nel ASA has implemented emergency operational measures in response to a slower-than-expected market development. The company is making significant cuts to its operational foundation, including a temporary production stoppage and workforce reductions, while maintaining its long-term technology projects.
The primary impact is being felt at the Herøya manufacturing facility, where production of alkaline electrolyzers has been paused. Company leadership cites a disappointing order intake for 2024 and significant delays across multiple customer projects as the rationale for this immediate capacity adjustment. The move aims to align operating costs with real-world demand in the short term and preserve capital.
Quarterly Figures Highlight Pressure
The urgency of this decision is underscored by the company’s third-quarter 2025 results. Revenue of 303 million Norwegian kroner (NOK) was met with new orders worth just 57 million NOK—an unsustainable ratio that threatens the company’s core business without corrective action. Despite these operational headwinds, reports from late 2025 indicate Nel ASA maintains a solid cash position, which should provide a buffer during the ongoing market consolidation. The broader renewable hydrogen sector is currently constrained by regulatory uncertainties and hesitant infrastructure development.
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Strategic Advance Continues Despite Cutbacks
Even as production lines stand still at Herøya, Nel is pushing forward with key strategic initiatives. In December 2025, the company made a final investment decision to industrialize its next generation of pressurized alkaline electrolyzers. This prepares the group for a future rebound in demand.
The closing months of 2025 also brought some positive commercial news. Nel was selected as the technology partner for GreenH projects and secured an order for PEM electrolyzers valued at over 50 million US dollars. These contracts demonstrate continued activity within the PEM segment, even as the traditional alkaline business faces challenges. The critical question for long-term viability is whether planned cost reductions can be realized quickly enough to bridge the financial gap until delayed large-scale projects materialize.
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