Nel ASA: New Pressurized Alkaline Platform and CEO Transition Mark a Pivotal Quarter
A strategic re-engineering of its core technology aims to cut hydrogen costs, but the market awaits orders and a leader.
NEL.OL · Earnings Call · 2026-07-15
Introduction
Nel ASA reported a second quarter that captures both its technological ambition and its commercial reality. Revenue from contracts came in at NOK 153 million, down 12% year-over-year, while adjusted EBITDA was flat once a NOK 70 million settlement with Iwatani is stripped out. The company ended the quarter with NOK 1.3 billion in cash, but it is still burning cash while it invests in a new manufacturing line. Adding to the narrative, CEO Håkon Volldal announced he will step down after a six-month notice period, though he insists the strategy remains unchanged. The quarter's centerpiece was the May 8 launch of the PA-Series, a pressurized alkaline platform designed to slash the cost of clean hydrogen.
We launched our new pressurized alkaline platform, what we call the PA-Series, on May 8th. That's when we took the curtains to the side and allowed people to inspect it and have a look at how it is constructed.
A New Alkaline Platform to Reimagine Cost
The alkaline platform is not just a new product; it is a fundamental redesign of how Nel intends to compete. The company claims the system cuts the footprint by up to 80%, reduces system CapEx by 40-60%, and brings system energy consumption to 51-53 kWh/kg — a figure the CEO insists reflects real-world performance, not datasheet numbers. In perhaps the most striking claim, the levelized cost of hydrogen at 30 bar pressure drops from $7.8/kg to $4.5/kg for small-scale projects. Volldal explained the rationale: “We need to bring the order intake up. We need to get back to the levels we saw in 2022, 2023 on the revenue side. In order to do that, you need a compelling product offering.” — Håkon Volldal, CEO · 2026-07-15
This pivot toward pressurized technology has been brewing for years. In the February 2026 call, Volldal described the shortcomings of existing pressurized systems, noting that “you might operate in the 55 to well above 60 kilowatt hours per kilogram range” — Hakon Volldal, CEO · 2026-02-26 due to shunt currents. The new PA-Series is designed to avoid that trap entirely, and the company is building a 500 MW production line at Herøya that could scale to 1 GW by 2027. The atmospheric alkaline technology that defined Nel's earlier business is being partially retired, though the company will still supply it to customers with legacy requirements.
Orders, Partnerships, and the Path Ahead
Order intake in the quarter jumped to NOK 230 million, up significantly from a weak prior year, lifting the backlog to NOK 1.2 billion. Most of that backlog is now PEM solution orders, reflecting strong momentum in containerized PEM systems — a segment that is seeing demand anywhere from 1.25 MW to 20 MW. The company landed a $7 million purchase order from France's Mesure Process and a first-of-its-kind sale to a public utility, Douglas County in the U.S., where the electrolyzers will help balance the grid.
Volldal acknowledged that order momentum remains the crux, particularly for alkaline. He noted that “we need to move into the hundreds of megawatts per year on alkaline and tens of megawatts for PEM in order for this to be a profitable business.” — Håkon Volldal, CEO · 2026-07-15 That echoes earlier calls, like in October 2025 when he cautioned, “it's notoriously difficult to predict when FIDs will be taken and what the time gap will be between an FID and a purchase order.” — Hakon Volldal, CEO · 2025-10-29 The company is leaning on a network of partners—Samsung E&A has completed a 100 MW reference design (CompassH2-A+), Saipem offers its IVHY 100 solution, and Reliance is progressing a gigafactory in India. A new frame agreement with power electronics supplier SMA Altenso adds supply-chain stability.
Funding and Leadership Transition
CFO Kjell Christian Bjørnsen addressed the funding question directly: “We do have, Arthur, a solid cash position as of now, and we have no urgency to do anything about it.” — Kjell Christian Bjørnsen, CFO · 2026-07-15 He pointed to past capital raises, the spin-out of Cavendish, and efforts to manage working capital. The company also remains entangled in one large overdue receivable from a German bankruptcy, though the net cash effect is expected to be zero.
Volldal's departure adds an element of uncertainty, but the current plan is anchored with the board and the broader management team. The strategy—including the rollout of the PA-Series and the future next-generation PEM technology—remains the top priority. As Volldal put it: “The current strategy, including technology and product roadmaps, project scope, target geographies, and the pursuit of partnerships with leading industrial players will remain unchanged.” — Håkon Volldal, CEO · 2026-07-15
With a capital-light approach to manufacturing, EU funding of EUR 135 million, and a clear technology roadmap, Nel is positioning itself for a more competitive era. The challenge now is converting pipeline interest into hard orders, particularly for the new alkaline platform. The market is watching to see whether the cost reductions are sufficient to unlock the long-awaited demand in Europe and beyond.