Europe’s Hydrogen Lead at Risk: Nel ASA Urges Protective Public Purchases

Key points at a glance:
- Nel?s CEO calls for EU rules prioritizing European production in public-sector purchases
- China accounts for roughly 60% of global electrolyzer manufacturing capacity, per the Oxford Institute for Energy Studies
- Upcoming milestones: Q4/2025 results on February 26; Annual General Meeting on April 10
- Latest disclosed figures (Q3/2025): revenue NOK 303 million (-17% YoY); order intake NOK 57 million (-64% YoY); liquidity about NOK 1.8 billion

Why the industry is feeling the heat

Reuters notes that Nel sits among a cohort of European hydrogen sector players seeking stronger industrial policy protections. The proposal is straightforward: public procurement in the EU should favor electrolyzers produced on European soil. Volldal frames the issue as one of learning and scale. Europe possesses technical prowess, but lacks broad deployment and project experience. His warning is clear: without widescale adoption and further development of European technology, China could catch up and potentially pull ahead. Nicolas de Coignac, head of John Cockerill?s hydrogen division, has echoed a similar concern, emphasizing that China?s advantage stems from the sheer scale of projects.

Policy levers with outsized impact

The European Commission is anticipated to unveil a legislative proposal within the month that would give preference to European manufacturers in public tenders. The potential impact is substantial: public sector spending across the EU is estimated at around ?2.5 trillion annually for goods and services.

Nadia Calviño, president of the European Investment Bank, has underscored that electrolyzers and wind power are sectors where Europe can remain comparatively less dependent. She also stressed that strengthening European value chains will require further investment.

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A challenging backdrop, with clear near-term milestones

The hydrogen industry in 2025 faced headwinds: projects were canceled or delayed amid high European energy costs and competition from cheaper, fossil-based hydrogen. Nevertheless, European suppliers have continued to secure a dominant share of project deliveries to European initiatives, according to Oxford data, accounting for more than 80% since 2022.

For Nel, several concrete milestones loom. On February 26, the company will publish Q4/2025 figures along with the annual report. Operationally, a major decision was taken in December 2025 to scale the Next-Generation-Pressurized-Alkaline-Plattform at its Herøya site, backed by up to ?135 million from the EU Innovation Fund. The company targets commercial rollout in the first half of 2026.

Nel?s near-term milestones and financials

• Q4/2025 results and full-year report due February 26
• Annual General Meeting scheduled for April 10
• December 2025 investment decision to industrialize the Next-Generation-Pressurized-Alkaline platform at Herøya, supported by up to ?135 million from the EU Innovations Fund
• Commercial launch planned for the first half of 2026
• Q3/2025 snapshot: revenue NOK 303 million (-17% YoY); order intake NOK 57 million (-64% YoY); liquidity around NOK 1.8 billion

In sum, Nel ASA is advocating a strategic European push to preserve leadership in hydrogen technologies, warning that without domestic deployment and robust value chains, Europe risks losing momentum to China. The coming months will reveal whether EU policy moves can tilt the balance toward a Europe-centered electrolyzer supply chain, while Nel advances its next-generation platform toward market, backed by significant EU funding and a targeted 2026 commercial debut.

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