Norwegian hydrogen company Nel is struggling with the cancellation of a large electrolyzer order - chance of later realization intact

Norwegian hydrogen company Nel is struggling with the cancellation of a large electrolyzer order - chance of later realization intact

According to a report by www.deraktionaer.de, the Norwegian hydrogen company Nel has canceled a large electrolyzer order. The customer HyCC wanted to realize the H2eron project, which has now been postponed until 2028 at the earliest, although the plant was originally planned to start production in the fourth quarter of 2025. Nel has not yet recorded any revenue for the project, with the order accounting for approximately 12.0 million euros of the communicated order backlog. The cancellation of the order is bitter, but not a blow, as if successful, Nel can expand the original order by ten megawatts and possibly even achieve better margins.

The cancellation of the order at Nel has an impact on the market and the financial industry. First of all, the postponement of the H2eron project means that Nel will only be able to realize the income from this major order at a later date. This may impact the company's short-term financial situation as planned revenues and profits are now postponed. In addition, the cancellation is a setback for Nel as they need to score points on the order side to justify the current valuation. Invested investors should therefore keep an eye on the stop and consider the possible impact on Nel's share price.

Regarding the hydrogen and electrolyzer market, the cancellation of the Nel order shows that the implementation of large projects in this area can be time-consuming and dependent on external factors, such as the regulatory framework and market conditions. This may potentially cause other companies in the industry to examine similar projects and orders more closely and adjust their expectations and planning accordingly.

Overall, the cancellation of Nel's order highlights the dynamics and challenges in the hydrogen industry and shows that companies in this area need to be flexible and adaptable to ensure long-term success.