Cavendish Hydrogen will make around 45% of its global workforce redundant in Q1 2025 and pause the development of its high-capacity hydrogen refuelling station as part of a cost-cutting plan.
The company was spun out of Norwegian electrolyser manufacturing company Nel last year, which took a 4.85% stake in Cavendish Hydrogen on Monday (January 20) in a bid to boost the refuelling station supplier’s finances. The firm’s stocks fell by around 82% from June 2023 to January 17, 2025.
Read more:Nel invests in Cavendish Hydrogen spin-off to secure long-term stability
“While the overall long-term outlook for hydrogen fuelling stations, specifically for heavy-duty vehicles, continues to look promising with the Alternative Fuels Infrastructure Regulation (AFIR) in place, we need to reduce our cost base significantly and adapt to the current market situation short term,” explained Cavendish CEO, Robert Borin.
“Our focus this year will primarily be on delivering according to customer obligations.”
Regarding company layoffs, the CEO said, “It is sad to say goodbye to so many competent employees and colleagues. Preserving cash is the responsible thing to do to make sure Cavendish is ready when the market takes off.”
According to its Q3 financial report, Cavendish Hydrogen had 242 employees, however, following to 45% cut, up to 109 will lose their jobs.
Cavendish’s high-capacity station testing project has now been frozen too. The company announced the signing of a purchase agreement for the station test site last year, located in Herning, Denmark.
Cavendish’s press statement wrote, “As part of the cost-cutting plan; Cavendish Hydrogen will reduce the scope and secure full focus on fulfilling global customer commitments.
“The development and prototype build of the next generation hydrogen fuelling station will be put on pause after finalisation of the bill of material. It will be resumed when the right customer – or industrial partner is secured.”
Marcus Halland, Chief Financial Officer (CFO) of Cavendish, claimed the company “remains well-financed” and these actions will “preserve cash and extend [Cavendish’s] runway.”
The CFO added, “In addition to fulfilling obligations towards customers, short-term sales will be a priority while continuing to invest in technology development when we have firm customer or partner commitments.”
As of Q3 2024, Cavendish Hydrogen reported an order backlog of €21m ($21.7m), although that was 42% down from the previous quarter end.
It also announced a partnership with Swiss company Hoerbiger last October, to develop a compact, high-performance compressor suitable for refuelling stations.
Read more:Cavendish teams up with Hoerbiger to ‘revolutionise’ hydrogen refuelling
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