Norwegian electrolyser firm Nel has announced it will cut jobs and temporarily halt production of its alkaline hydrogen production technology as it faces slow uptake.
The longstanding hydrogen technology company said order intake in 2023 and 2024 “fell short of expectation” with several customer projects delayed or “at risk of being cancelled.”
Furthermore, Nel said that a customer has failed to pay for delivered equipment, with payment now being more than a year overdue, and is undertaking a process to retain ownership of the equipment.
This, it says, has resulted in a “limited need” to produce new alkaline electrolyser equipment in the near-term, and has temporarily halted production at its 1GW Herøya plant in Norway.
In its Q3 2024 results, the electrolyser major saw a 52% decrease in order intake from the same period in 2023 – with alkaline electrolysers seeing the biggest drop of 97%.
The company expects around 20% of Herøya’s full-time employees will lose their jobs, with around half already out of the job.
“While the long-term outlook for clean hydrogen remains strong, we must make some tough decisions today based on lower order intake in 2024 than expected,” Håkon Volldal, President and CEO of Nel.
“This is an unfortunate situation, and I’m sorry that we now have to let go of many qualified people.”
Despite the major changes, the company said it sees a “strong pipeline” of clean hydrogen projects, as well as near-term opportunities to sell its containerised PEM systems.
Nel Chief Financial Officer (CFO), Kjell Christian Bjørnsen, stressed, “The company remains well-financed, and with these actions, we will preserve cash while still being able to aggressively pursue sales opportunities and invest in technology development.”
The production and workforce reductions come as the firm looks to build 4GW of production capacity in Michigan, US, having secured $200m in funding.
Media Guide
Don’t just stay at the forefront of the latest news and views in the hydrogen economy, position yourself at the forefront with H2 View. Reach the right target audience for your company through our range of promotional platforms.
Whether online, in print, or as part of our newsletters, H2 View has a range of advertising options to meet your objectives. Download H2 View’s 2025 media guide today!
