Nel ASA Stock Falls: Statkraft Halts Hydrogen Project with Nel ASA and Cancels 40 MW Contract

Oslo, Norway – The hydrogen company Nel ASA has announced that energy giant Statkraft has cancelled a contract for a 40 MW alkaline electrolyzer. Nel ASA’s stock has experienced a significant drop.

Nel Hydrogen Electrolyser AS, a subsidiary of Nel ASA, and Statkraft signed the agreement on January 6, 2023. The contract had already been listed as a potential risk for delays or cancellation in Nel ASA's financial report for Q1 2025. The cancellation of the order reduces Nel ASA’s order backlog by 120 million NOK (approximately €10.2 million).

According to Statkraft, the company had invested significant efforts and resources over several years into the development and financing of a hydrogen project in Mo. "Despite the efforts we have not been able to create a viable commercial model for the project in the current market conditions. We therefore need to adjust the plan accordingly and cancel our order with Nel," said Bjørn Holsen, Senior Vice President for Hydrogen at Statkraft.

This decision highlights the challenges in the emerging hydrogen project market, particularly regarding the creation of sustainable business models.

Nel ASA’s stock dropped nearly 7 percent to €0.1876 on Tuesday following the announcement of the order cancellation (closing price, Stuttgart Stock Exchange).

Source: IWR Online, 02 May 2025