Danish electrolyser maker Green Hydrogen Systems plans to file for insolvency after failing to secure additional financing.
The company revealed on Sunday (March 9) that it would file for in-court restructuring on Monday (March 10) to assess survival options, including asset sales.
Green Hydrogen Systems has struggled to stay afloat since last October, when it launched a drastic restructuring plan to slash costs by up to 50%.
The company warned that it could exhaust its cash reserves by H1 2025, estimating restructuring costs at up to DKK 230m ($33.5m) and planning a rights issue of DKK 300m ($43.7m).
Company Chairman, Thomas Broe-Andersen, said that while the company had been executing the restructuring plan, “it has not been possible to raise the necessary capital.
“Therefore, the Board of Directors finds it necessary to enter into an in-court restructuring. Green Hydrogen Systems has a unique product and the potential to play an important role in the future hydrogen market and in the green transition.
“We continue to believe that this potential could have been realised had the financing been secured. Therefore, it is regrettable that the company has not been able to raise sufficient funding.”
The company hoped to hedge its future on its new generation X-Series alkaline electrolyser after experiencing “teething issues” with its A-Series system.
Paired with cost cuts, this was meant to accelerate breakeven – but the financial shortfall proved insurmountable.
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