Nel ASA Shares Surge on Major Hydrogen Contract Wins

After a prolonged period of underperformance, shares of Norwegian hydrogen specialist Nel ASA are demonstrating renewed vigor. The company has recently secured several strategically significant large-scale orders within its domestic market, reinforcing its position as a pivotal supplier for multiple important hydrogen initiatives.

On November 10th, Nel announced a strategic collaboration with GreenH AS, positioning the company as technology provider for Enova-supported projects in both Kristiansund and Slagentangen. This agreement guarantees minimum capacity of 10 MW at each location, totaling more than 20 MW combined.

Under this partnership, Nel's responsibilities extend beyond simply supplying electrolyzer equipment. The company will also provide comprehensive engineering services and ongoing technical support, creating additional revenue streams beyond equipment sales.

Record-Breaking Order Fuels Growth Prospects

The company made waves on November 5th with the announcement of the largest PEM equipment order in its corporate history. This firm purchase from the HyFuel and Kaupanes projects brings over $50 million in revenue, representing the second-largest contract ever secured by the business.

Should investors sell immediately? Or is it worth buying Nel ASA?

Key Project Details:
- HyFuel initiative located in Florø (Kinn municipality)
- Kaupanes project situated in Eigersund municipality
- Combined Enova funding totaling 386 million NOK
- Manufacturing to commence at Nel's Wallingford, Connecticut facility

The order encompasses 40 MW of capacity through Nel's containerized MC 500 PEM systems, with each project contributing 20 MW. System deliveries are scheduled between the second half of 2026 through 2027, with commercial operations expected to begin in early 2028.

Financial Recovery on the Horizon?

These consecutive contract victories may signal the long-awaited turnaround for Nel. The $50 million agreement specifically targets enhanced financial performance and improved product cost efficiency. Chief Executive Håkon Volldal emphasized the strategic importance of these Norwegian projects as reference cases for future business development.

Particularly significant is how these contracts will substantially expand Nel's service and aftermarket operations throughout Europe. Following a phase of weaker order intake, the company now convincingly demonstrates the competitive strength of its PEM platform for large-scale industrial applications.