Nel ASA Reports Surge in PEM Electrolyser Orders as Alkaline Revenue Plunges and Losses Widen
Oslo – Norwegian hydrogen company Nel ASA recorded a sharp rise in orders for PEM electrolysers in the third quarter of 2026. At the same time, revenue from alkaline electrolysers plunged, while group losses increased significantly.
Nel Group Revenue Falls 63 Percent as PEM Grows and Alkaline Slumps
Group revenue from contracts with customers fell 63 percent in the third quarter to NOK 112 million (EUR 10.6 million), from NOK 303 million (EUR 28.7 million) in the year-earlier quarter. Including other income, Nel reported total income of NOK 138 million (EUR 13.1 million).
The two technology segments moved in opposite directions. In the PEM segment, revenue rose 65 percent to NOK 89 million (EUR 8.4 million), driven by containerised electrolyser systems. Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved from negative NOK 34 million to negative NOK 24 million (negative EUR 2.3 million).
In the alkaline segment, revenue dropped 91 percent to NOK 23 million (EUR 2.2 million). EBITDA deteriorated from positive NOK 26 million to negative NOK 41 million (negative EUR 3.9 million). According to Nel, the high prior-year figure was largely due to revenue recognition on reaching project milestones.
Order Intake More Than Quadruples as Submarine Contracts Drive PEM Business
Group order intake rose 339 percent to NOK 253 million (EUR 24.0 million), from NOK 57 million in the year-earlier quarter.
Of this, NOK 245 million (EUR 23.2 million) was attributable to PEM, an increase of 473 percent. Orders from Collins Aerospace worth around USD 20 million for PEM electrolyser stacks used for oxygen supply on submarines made a significant contribution. Deliveries are scheduled for 2027 and 2028. The surge in orders was therefore not driven by hydrogen projects alone.
The order backlog increased 34 percent to NOK 1.314 billion (EUR 124.5 million). Group EBITDA, meanwhile, deteriorated from negative NOK 37 million to negative NOK 93 million (negative EUR 8.8 million). The net loss rose to NOK 141 million (EUR 13.4 million). Cash and cash equivalents fell 39 percent year on year to NOK 1.078 billion (EUR 102.1 million).
Nel Develops New Alkaline Technology and Expands PEM Partnerships
Despite the weak alkaline business, Nel continues to pursue both technologies. In May 2026, the company unveiled a new generation of pressurised alkaline electrolysers, which, according to Nel, is intended to lower the costs of large-scale hydrogen projects.
At its Herøya site, Nel is working on a production line for the new alkaline generation with a planned annual capacity of 1 GW. In the PEM business, Hydrasun is to build additional integration capacity for modular systems in Europe.
Nel Under Pressure as Overcapacity and Weak Demand Weigh on Electrolyser Market
Nel’s performance comes at a time when global demand for electrolysers is lagging well behind established manufacturing capacity. According to the International Energy Agency (IEA), global installed electrolyser capacity doubled to more than 4 GW in 2025. Global manufacturing capacity of around 58 GW per year stood against actual annual output of less than 5 GW, putting calculated capacity utilisation below 10 percent.
The difficult market situation is also evident in cancelled hydrogen projects and strategic retreats by major energy companies. In August 2026, the large-scale hydrogen project HySCALE100 at the Heide refinery in Schleswig-Holstein was scrapped. In September, Statkraft completed the sale of its UK hydrogen project portfolio, continuing its withdrawal from in-house project development. The IEA views the electrolyser industry as being in a consolidation phase.
Source: IWR Online, 20 Oct 2026
