NEL ASA
Sector unknown·NEL · Oslo Børs·Fiscal year to 31/12/2024
Exposure profile
Derived from what the company itself writes. Empty directions mean the report doesn't mention themes of that type.
In their own words
Grouped by theme, from the management review in the annual report. A · The company itself is a verbatim quote, B · From the report is without a verified quote.
Hydrogen and Power-to-X
Technology
DriverNegative impact: weakens
“A number of Nel’s existing and potential customers are themselves planning for substantial growth, and should these customers fail to succeed with their business plans or fail to fulfil their contracts with Nel, Nel’s sales to such customers may be adversely affected.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Competitors’ or new entrants’ innovations in the hydrogen industry could make our current technologies, and those under development, less relevant for the future. Additionally, if competitors gain advantages in the performance of current or in the development of alternative electrolyser technologies, this could affect the competitive position of the group.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Nel foresee an increased risk related to product failure and technology obsolescence. The reputational damage risk from product failure and failure to meet high expectation from our customers may affect the eligibility of our equipment technology.”
Annual report 2024A · The company itself
StrategyPositive impact: strengthens
“• Signing of strategic partnerships: In 2024 and early 2025, we signed several agreements with companies across the hydrogen value chain that strengthen our position as a leader in the hydrogen industry.”
Annual report 2024A · The company itself
StrategyPositive impact: strengthens
“A proven track record of delivering working electrolyser systems over several decades, a diverse product portfolio covering both alkaline and PEM solutions, and automated GW-scale production facilities are important differentiating factors. Nel also continues to make significant investments in improving the performance of current technology platforms and maturing next generation technologies, for example a pressurized alkaline system and a new PEM stack developed in collaboration with General Motors.”
Annual report 2024A · The company itself
Market
“The company specializes in electrolyser technology for production of renewable hydrogen. Nel’s product offerings are key enablers for a renewable hydrogen economy, making it possible to decarbonize various industries such as transportation, refining, steel, and ammonia.”
Annual report 2024A · The company itself
Market
“Nel is a leading global electrolyser supplier, offering both AWE (alkaline water electrolysis) and PEM (proton exchange membrane) technology globally.”
Annual report 2024A · The company itself
Market
“Nel’s strategy is to deliver reliable and energy-efficient electrolyser stacks and balance of stack systems to mid- and large-scale projects, initially in Europe and North America and over time in other markets.”
Annual report 2024A · The company itself
Asia and emerging markets
Geography
StrategyPositive impact: strengthens
“One example is the Technology Licensing Agreement where Reliance, India’s largest privately-owned company, will manufacture and sell Nel’s alkaline technology in India and for their own projects globally.”
Annual report 2024A · The company itself
Market
“• Realigned the relationship with Nikola and will support Fortescue on its 80 MW Phoenix hydrogen hub, for a total consideration of approximately USD 20 million. • Entered into a technology licensing agreement with RIL.”
Annual report 2024A · The company itself
Geography
“As many of the largest projects are likely to be located in geographical areas with abundant resources of wind and solar energy, reducing electricity prices and carbon footprint, important export markets longer term is expected to include Asia, Middle East and Australia.”
Annual report 2024A · The company itself
Steel
Raw materials and inputs
InputNegative impact: weakens
“A significant portion of Nel’s greenhouse gas inventory stems from purchased goods, such as metals, steel, nickel, platinum and iridium.”
Annual report 2024A · The company itself
Market
“But some industries, such as refineries, steel and ammonia producers, shipping companies etc. face a more challenging path toward zero emissions. These sectors cannot easily electrify their operations. Instead, they need renewable hydrogen or hydrogen derivatives to reduce and ultimately eliminate their dependence on fossil energy.”
Annual report 2024A · The company itself
Chains in: Wind power strengthens
Agriculture and food production
End markets
Market
“But some industries, such as refineries, steel and ammonia producers, shipping companies etc. face a more challenging path toward zero emissions. These sectors cannot easily electrify their operations. Instead, they need renewable hydrogen or hydrogen derivatives to reduce and ultimately eliminate their dependence on fossil energy.”
Annual report 2024A · The company itself
Chains in: Grain and agricultural commodities mixed effect, Climate change and extreme weather weakens, Grocery retail and private label weakens
Artificial intelligence
Technology
StrategyPositive impact: strengthens
“Our technology development efforts have been accelerated. We continue to improve our existing technology platforms, both with respect to cost and performance. In parallel we advance our game-changing next-generation PEM and pressurized alkaline platforms according to plan.”
Annual report 2024A · The company itself
Chains out: this strengthens Data centres, strengthens Semiconductors and electronic components, strengthens Semiconductor industry
Automation and robotics
Technology
StrategyPositive impact: strengthens
“We expect a similar effect on our PEM operations and see a path to profitability with our current manufacturing capacity. • Efficient manufacturing at scale: We inaugurated the 500MW PEM production line in Wallingford, USA. Through automation and innovation, we can now produce 10 times as many stacks at a 30% lower unit cost. We also opened Line 2 at Herøya, Norway, in 2024, bringing the annual production capacity for Alkaline to 1GW.”
Annual report 2024A · The company itself
Energy efficiency
Technology
StrategyPositive impact: strengthens
“Nel’s electrolyser technologies have improved continuously and set the industry standard for performance and levelized cost of hydrogen.”
Annual report 2024A · The company itself
Chains in: Carbon tax and ETS prices strengthens, EU climate and energy policy strengthens
Industrial manufacturing
End markets
Market
“Nel’s product offerings are key enablers for a renewable hydrogen economy, making it possible to decarbonize various industries such as transportation, refining, steel, and ammonia.”
Annual report 2024A · The company itself
Shipping and logistics
End markets
Market
“But some industries, such as refineries, steel and ammonia producers, shipping companies etc. face a more challenging path toward zero emissions.”
Annual report 2024A · The company itself
Chains in: Carbon tax and ETS prices weakens, Global trade volumes strengthens, Fuel strengthens
EU climate and energy policy
Regulation
DriverPositive impact: strengthens
“Moreover, in October 2024, we received news from the EU’s Innovation Fund that Nel was awarded up to 135 million Euros in grants to scale up manufacturing capacity of Nel’s new pressurized alkaline technology.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“For the industrialization of this next-generation pressurized alkaline technology, Nel has been selected for a grant from the EU Innovation Fund of up to EUR 135 million. The EU support will be phased with Nel’s own investments for up to 4 GW of capacity for pressurized electrolyser equipment in Norway.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“In addition, we see regulations supporting the transition across the globe, with the EU and the US pledging hundreds of billions of dollars into zeroemission programs where hydrogen is the energy carrier of choice.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Reduced and/or delayed support from governments will delay the developments of the renewable hydrogen industry.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Several high-quality projects with reputable clients continue to mature and get closer to final investment decisions. In the near- to mid-term, Nel expects projects to be smaller than what was anticipated a few years ago.”
Annual report 2024A · The company itself
Chains out: this strengthens Circular economy and recycling, strengthens Energy efficiency
Business cycle and GDP growth
Macro
DriverNegative impact: weakens
“The near- and mid-term market is difficult to predict, influenced by factors beyond the company’s control. This year we will face the consequences of low order intake and project delays or cancellations in 2023 and 2024.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“As a result of renewable hydrogen projects taking longer time to reach final investment decision than anticipated and existing contracts being significantly delayed or cancelled as customers fail to secure funding, Nel has an increased inventory of finished goods and lower backlog for 2025 delivery.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Several high-quality projects with reputable clients continue to mature and get closer to final investment decisions. In the near- to mid-term, Nel expects projects to be smaller than what was anticipated a few years ago.”
Annual report 2024A · The company itself
Chains out: this strengthens Global trade volumes, strengthens Construction
Renewables auctions and subsidies
Regulation
DriverNegative impact: weakens
“Delays in announced government incentives, higher interest rates, and higher than expected costs for building and operating hydrogen facilities (outside of Nel’s core scope) have led to lower than expected order intake for the industry as a whole and for Nel in the last two years.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Reduced and/or delayed support from governments will delay the developments of the renewable hydrogen industry.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“Political incentive schemes such as the Inflation Reduction act in the United States and the Hydrogen Bank in the EU are expected to be important contributors to developing the industry.”
Annual report 2024A · The company itself
Chains in: Wind power strengthens
Interest rates
Macro
DriverNegative impact: weakens
“Inflation, higher interest rates, and lack of standardization have driven the cost of renewable hydrogen projects up.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Delays in announced government incentives, higher interest rates, and higher than expected costs for building and operating hydrogen facilities (outside of Nel’s core scope) have led to lower than expected order intake for the industry as a whole and for Nel in the last two years.”
Annual report 2024A · The company itself
Chains in: Public debt and fiscal policy strengthens, Inflation strengthens
Chains out: this weakens Construction, weakens Real estate, weakens Wind power, weakens Housing market, weakens Office and commercial property, weakens Residential rental, weakens Residential construction
Public investment and infrastructure
Regulation
DriverPositive impact: strengthens
“For the industrialization of this next-generation pressurized alkaline technology, Nel has been selected for a grant from the EU Innovation Fund of up to EUR 135 million. The EU support will be phased with Nel’s own investments for up to 4 GW of capacity for pressurized electrolyser equipment in Norway.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“Approximately 10% of the work under the R&D programs will be undertaken by Nel. • The US Department of Energy (DoE) and the state of Michigan have awarded a collective USD 75 million in cash incentives and grants for Nel’s next electrolyser production facility in Michigan. In addition, Nel has been awarded up to USD 41 million in investment tax credits for its planned manufacturing expansion in Michigan as part of the Qualifying Advanced Energy Project Tax Credit (48C) program.”
Annual report 2024A · The company itself
Chains in: Reconstruction of Ukraine strengthens
Chains out: this strengthens Construction, strengthens Digitalisation, strengthens IT consulting and public-sector IT
Labour and wages
Raw materials and inputs
DriverNegative impact: weakens
“The highly skilled characteristic of our workforce makes employment retention and well-being at workplace critical dependencies to our operations.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“On the other hand, the ability to absorb skilled personnel from industries highly related on fossil fuels is a relevant opportunity to local communities and labour market in a business scenario with Net Zero Emission.”
Annual report 2024A · The company itself
InputNegative impact: weakens
“Personnel expenses amounted to NOK 646 million (546).”
Annual report 2024A · The company itself
Water
Raw materials and inputs
DriverNegative impact: weakens
“Climate events may increase the requirements for product safety or the water supply for production of hydrogen via electrolysis. These risks are not considered to have a severe impact to our operations, although consideration shall be taken for alternative sources of water in water stressed regions (such as water desalination) or increased product safety test against climate event (such as flooding and earthquake).”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“Water consumption and withdrawal in water-stress areas, use of sold products Based on the atomic properties of water, 1 kg of hydrogen requires 8.92 litres of water. Comparing water consumption for electrolysis with other energy processes, the water footprint of certain fossil-based pathways exceeds that of hydrogen. Crude oil recovery and diesel refining uses around 40% more water than the production of renewable hydrogen per unit of energy.”
Annual report 2024A · The company itself
Copper
Raw materials and inputs
InputNegative impact: weakens
“A significant portion of Nel’s greenhouse gas inventory stems from purchased goods, such as metals, steel, nickel, platinum and iridium.”
Annual report 2024A · The company itself
Chains in: Electrification strengthens, Data centres strengthens
Chains out: this strengthens Mining
Cybersecurity (products and services)
Technology
DriverNegative impact: weakens
“Cyber security threats have continuously increased in scale and sophistication in recent years.”
Annual report 2024A · The company itself
Chains in: Cyber attacks and IT security risk strengthens
Chains out: this strengthens Digitalisation
Electricity
Raw materials and inputs
InputNegative impact: weakens
“In order to meet cost-efficiency comparisons with diesel, these developments will require low-cost electrolysis combined with low-cost clean energy.”
Annual report 2024A · The company itself
Chains in: Data centres strengthens, Electrification strengthens
Chains out: this strengthens Power grid expansion
Equity and capital markets
Macro
DriverNegative impact: weakens
“As a result of renewable hydrogen projects taking longer time to reach final investment decision than anticipated and existing contracts being significantly delayed or cancelled as customers fail to secure funding, Nel has an increased inventory of finished goods and lower backlog for 2025 delivery.”
Annual report 2024A · The company itself
Inflation
Macro
DriverNegative impact: weakens
“Inflation, higher interest rates, and lack of standardization have driven the cost of renewable hydrogen projects up.”
Annual report 2024A · The company itself
Chains out: this weakens Consumer spending, strengthens Interest rates
Precious metals
Raw materials and inputs
InputNegative impact: weakens
“A significant portion of Nel’s greenhouse gas inventory stems from purchased goods, such as metals, steel, nickel, platinum and iridium.”
Annual report 2024A · The company itself
United States
Geography
Geography
“Nel expects to sell and deliver directly primarily in Europe and North America, as well as other selected regions, over the next couple of years until larger projects in other projects start to materialize.”
Annual report 2024A · The company itself
Geography
“Nel consists of electrolyser production facilities in Norway and Connecticut, USA, supported by headquarters in Norway. Nel has a sales and support network with global reach.”
Annual report 2024A · The company itself
Geography
“Nel’s strategy is to deliver reliable and energy-efficient electrolyser stacks and balance of stack systems to mid- and large-scale projects, initially in Europe and North America and over time in other markets.”
Annual report 2024A · The company itself
Geography
“In 2023, Nel announced Plymouth Charter Township, a suburb of Detroit, Michigan as the selected site for a factory of Alkaline and PEM electrolysers with up to 4GW in production capacity. The expansion is currently delayed due to a slower than expected growth in the electrolyser market in the United States.”
Annual report 2024A · The company itself
Chains in: USD vs DKK/EUR mixed effect
Europe
Geography
Geography
“Nel expects to sell and deliver directly primarily in Europe and North America, as well as other selected regions, over the next couple of years until larger projects in other projects start to materialize.”
Annual report 2024A · The company itself
Geography
“Nel’s strategy is to deliver reliable and energy-efficient electrolyser stacks and balance of stack systems to mid- and large-scale projects, initially in Europe and North America and over time in other markets.”
Annual report 2024A · The company itself
Climate change and extreme weather
Macro
DriverNegative impact: weakens
“Climate events may increase the requirements for product safety or the water supply for production of hydrogen via electrolysis. These risks are not considered to have a severe impact to our operations, although consideration shall be taken for alternative sources of water in water stressed regions (such as water desalination) or increased product safety test against climate event (such as flooding and earthquake).”
Annual report 2024A · The company itself
Chains out: this weakens Agriculture and food production
Denmark
Geography
Geography
“Nel consists of electrolyser production facilities in Norway and Connecticut, USA, supported by headquarters in Norway. Nel has a sales and support network with global reach.”
Annual report 2024A · The company itself
Semiconductors and electronic components
Raw materials and inputs
InputNegative impact: weakens
“Raw materials expenses totalled NOK 504 million (715), a decrease of 30% from 2023.”
Annual report 2024A · The company itself
Chains in: Artificial intelligence strengthens
Competitors mentioned in the report
No named competitors in the report.
Financial figures
| Revenue latest fiscal year | 1.39 bn NOK |
| Revenue growth vs. the year before, same method | 3 % |
| EBITDA reported by the company | -0.17 bn NOK |
| Net debt debt incl. leasing minus cash | N/A |
| Diluted EPS per share | -0.15 NOK |
Source: annual report (ESEF) A. See the report
Criteria
| Profit | ✗ |
| Growing | ✓ |
| Healthy balance sheet | N/A |
Only the criteria that can be computed from financial statements on this page. The remaining criteria (such as price and dividend) need a share price and are in the analysis.
Figures are in the report's currency (NOK), not converted to DKK. Quotes are shown as the company's own words in the report's original language.