Nel ASA: Order Boom and Operational Challenges
Nel ASA’s latest financial results are a mixed bag. Order intake skyrocketed to NOK 230 million, a 224% increase year-over-year. However, revenue simultaneously shrank by about 12% to NOK 153 million. The order backlog, on the other hand, grew to NOK 1.2 billion. Operating profit did not improve due to a NOK 70 million settlement with Iwatani, which significantly weighed on EBITDA. Without this effect, the figures would have been somewhat better. The company currently holds just under NOK 1.3 billion in cash and cash equivalents, giving it sufficient financial flexibility.
CEO Håkon Volldal is leaving the company after four years but will remain in office until the end of the year. The board of directors is currently searching for a successor and emphasized that there will be no change in the strategic direction. This consistency is important as the company is realigning its business model. The company aims to move away from speculative large-scale projects and toward decentralized solutions for industrial customers. The partnership with H2 Energy is intended to support this transition. The North American market is becoming more expensive due to new import tariffs on green technologies. In this context, it would be important for the plant in the US to be completed.
The new PA-Series pressurized alkali platform offers hope. After eight years of development, it is ready for the market and is expected to reduce investment costs by 40–60% compared to conventional electrolysis solutions. For a 25-megawatt (MW) plant, Nel ASA is targeting turnkey costs of less than USD 1,450 per kilowatt. Currently, the industry standard often exceeds USD 3,000. By the end of 2026, Nel plans to increase production capacity at Herøya to 500 MW. Next year, this figure is set to double once again. The priority now is to work through the order backlog and convert it into revenue. The third-quarter interim report on October 21 will show whether this transition is successful.
dynaCERT: Commercialization Gains Momentum
Canadian cleantech specialist dynaCERT received its first production order from a Vietnamese logistics company in June 2026. This is evidence that the pilot phase is gradually coming to a close. At the same time, several HydraGEN™ systems were installed in trucks and container equipment at one of the world’s largest port operators in Vietnam. These reference projects not only provide operational data but also significantly increase the company’s visibility in the global transportation industry. Market penetration in Southeast Asia could serve as a blueprint for other regions.
At the end of June, the company secured CAD 5 million, which will be channeled into global sales. dynaCERT is a solutions provider for the entire powertrain system of diesel engines. The electrolysis process accounts for only one-third of the system. Added to this are the thermodynamics within the engine and the specific application, which determine load curves and RPMs. As a retrofit solution, the investment eliminates the need to purchase new engines or equipment, making the solution attractive to fleet operators. For standard applications such as Class 8 trucks, installation requires minimal effort. The increased efficiency in the combustion chamber leads to nearly complete combustion, reduced fuel consumption, and lower emissions. Economically, the retrofit pays for itself within 1.5 to 2 years.
In August, the company reported progress on several implementations in Vietnam, including at a waste management company near Hanoi and a major oil company. Hydrogen technology is now also being tested in fire trucks, forklifts, and cranes. Of particular interest to a local logistics group is the improved telematics solution HydraLytica™, which enables the generation of valuable operational data. At the same time, discussions are already underway in Cambodia, Indonesia, and Japan. The company is continuing to expand its foothold in Southeast Asia. The next quarterly results will show how revenue has developed.
Plug Power: Ahead of the Quarterly Results
Hydrogen specialist Plug Power is scheduled to report its second-quarter results on August 10 after the US market closes. As the announcement comes after our editorial deadline, we are looking ahead to analyst expectations, which remain subdued. Revenue is expected to be around USD 168–169 million, roughly 3–4% below the prior-year figure. Loss per share is expected to improve, from a loss of USD 0.20 in the same period last year to a loss of just USD 0.08 this time. The company has not yet achieved profitability, but this would be a step in the right direction. Consensus estimates were even revised slightly upward recently, indicating cautious optimism.
For investors, however, revenue alone will not be the only factor in the second-quarter results report. The key will be whether Plug Power can demonstrate progress on its gross margin and cash burn. In the first quarter, the margin improved from minus 55% to minus 13%. Operating cash outflow totaled USD 150 million in the first three months, and cash on hand fell from USD 369 million to USD 223 million, putting management under pressure. Analysts expect a negative EBITDAS of around USD 73 million for the second quarter. That, too, would be an improvement, but it is not yet a reason to breathe a sigh of relief.
The asset sales to Stream Data Centers will bring in more than USD 80 million in additional liquidity in the short term. Combined with a major order for a 50 MW electrolyzer for Orica’s Hunter Valley project in Australia, this will inject new cash into the company’s coffers. The turnaround program “Project Quantum Leap” is intended to bring about an operational turnaround. The goal is to achieve positive adjusted EBITDAS starting in the fourth quarter. Whether this strategy succeeds will not be determined by a single quarterly report. The question is whether Plug Power will need to resort to further capital measures or whether the existing cash will be sufficient to return to profitability.
Operational excellence and capital discipline will decide the hydrogen race. Nel ASA impresses with technological progress and a growing order backlog, but the CEO change and declining revenue cloud the picture. dynaCERT is demonstrating the practical market penetration of its cost-effective retrofit solutions through production orders in Southeast Asia. Plug Power is struggling with high cash burn, but initial margin improvements and the Quantum Leap turnaround program offer hope for a turnaround starting in the fourth quarter.
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