Nel Urges EU Buy-European Rules to Shield Europe’s Electrolyzer Industry

Key points at a glance
- Nel CEO Volldal advocates for EU procurement rules favoring European suppliers for public electrolyzer orders
- The EU Commission plans to propose a comprehensive ?Buy European? package for public procurement later this month
- China now accounts for 60% of global electrolyzer manufacturing capacity
- Nel is scheduled to report Q4-2025 results and the annual report on February 26
- The proscribed policy push follows Volldal?s collaboration with other European hydrogen executives to bolster domestic production

Industry-initiative behind the pressure

According to Reuters, Volldal has aligned with other senior figures from Europe?s hydrogen industry, arguing that public buyers within the EU should favor domestically manufactured electrolyzers. The rationale is straightforward: Europe claims to lead technologically, but without broad project adoption, the sector cannot translate breakthroughs into scalable learning and cost advantages. Volldal warned that Chinese competitors could gain momentum if Europe does not accelerate its take-up in real-world deployments.

Rising urgency in a difficult market

The push comes amid a spate of project cancellations or delays across Europe?s hydrogen plans. Reuters notes the challenging environment in 2025, with high European energy costs and cheaper options?such as hydrogen produced from fossil fuels?putting downstream projects at risk.

The market presents a split picture. The Oxford Institute for Energy Studies reports that European manufacturers still supply a large share of projects in their home market: since 2022, more than 80% of sales for European projects have gone to European firms. Yet the global picture is shifting, as China already holds 60% of worldwide electrolyzer production capacity.

EU rules and Nel?s upcoming milestones

The EU Commission is expected to unveil, within the month, legislative proposals aimed at prioritizing European producers in public procurement. A substantial lever here is the scale of EU government spending: authorities purchase roughly 2.5 trillion euros worth of goods and services each year.

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The European Investment Bank also highlighted potential policy focus areas. EIB President Nadia Calviño pointed to electrolyzers and wind energy as sectors with relatively lower external dependency, while stressing the need for further investments in EU value chains.

For Nel, the timing is critical. The company?s financial calendar shows Q4/2025 results and the annual report due on February 26, with the annual general meeting slated for April 10. On the operational front, Nel disclosed in December that it planned to industrialize its Next-Generation Pressurized Alkaline platform at the Herøya site, aided by funding from the EU Innovation Fund. The company expects a commercial launch in the first half of the year.

Recent performance and liquidity context

Nel?s environment remains challenging for the stock. In the third quarter of 2025, the company reported revenue of NOK 303 million, down 17% year over year. New orders dropped 64% to NOK 57 million, while the order backlog stood at NOK 984 million at the end of September. Liquidity was reported at around NOK 1.8 billion.

Outlook and next triggers

With the February 26 release, Nel will lay out its full-year figures and forward-looking guidance, alongside continued assessment of project execution and market conditions. The EU?s forthcoming procurement rules are expected to shape the competitive landscape for domestic electrolyzer manufacturers, potentially influencing the company?s ability to capitalize on its European manufacturing footprint. The April 10 AGM will follow, marking an important milestone for investors awaiting additional strategic updates from Nel.

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