Nel ASA Hands European Electrolyser Assembly to Hydrasun While Losses Pile Up
Published on 09/20/2026 at 17:50 | Editorial boerse-global.de
Nel ASA is betting that a leaner European manufacturing footprint can buy it time, even as its bottom line continues to bleed. The Norwegian hydrogen equipment maker has finalized a framework agreement with Hydrasun that reshapes how its PEM electrolyser systems reach customers on the continent — and the arrangement says as much about cost discipline as it does about growth ambitions.
A transatlantic division of labor
Under the deal, struck roughly a week ago, Hydrasun takes charge of procurement, fabrication and integration of the balance-of-plant systems that surround Nel's MC-series PEM electrolyser stacks. The goal is a modular, containerized package that can be delivered as a single offering. Nel keeps the core stack production at its Wallingford facility in Connecticut, preserving control over the cell technology at the heart of the platform.
The split mirrors the structure Nel has already established for containerized PEM solutions in the United States, now extended to European soil. By offloading integration work to a partner, the company frees up its own resources while widening its delivery reach across Europe. It also demands tight coordination between the two organizations — a dependency that cuts both ways.
Q2 figures lay bare the margin squeeze
The rationale for outsourcing becomes clearer against Nel's recent financials. For the second quarter of 2026, reported about a month ago, the company booked revenue from customer contracts of 153 million Norwegian kroner. Earnings before interest, taxes, depreciation and amortization came in at minus 155 million NOK — a deficit that underscores how heavily development and industrial ramp-up costs still weigh on the business.
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That pattern is familiar across the hydrogen equipment sector, where suppliers carry large upfront outlays for engineering and production capacity while major volume orders remain slow to arrive. Nel's task is to drive down production costs and scale the platform toward a profitable base over the medium term.
Cash cushion and order book offer breathing room
There is no immediate funding crunch. At the close of the second quarter, Nel held cash reserves of 1.3 billion NOK alongside an order backlog of 1.2 billion NOK. Order intake for the quarter reached 230 million NOK. Those liquid resources underpin ongoing operations, and the European partnership is meant to help work through the backlog faster and shorten delivery times.
Market participants, however, remain cautious about execution speed across the hydrogen space. Delayed investment decisions on the customer side continue to weigh on valuations of equipment makers.
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Where the stock stands
Nel shares closed Friday at EUR 0.1940, leaving the stock 47 percent below its 52-week high. The company carries a market capitalization of EUR 346.90 million. Whether the Hydrasun tie-up translates into faster order conversion — and eventually into a narrower loss — will determine how much of that gap the equity can recover.
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