Nel ASA: Adjusts capacity to market demand

13 Jan 2025 14:28 CET

(January 13, 2025 - Oslo, Norway) Nel ASA (Nel, OSE:NEL) and its subsidiaries
have initiated a process to adjust capacity to market demand by reducing the
workforce and temporarily halting production at the Alkaline production facility
in Herøya, Norway.

The market for renewable hydrogen production technology has been slower than
expected for the industry in general, including Nel. Order intake in 2023 and
2024 fell short of expectations, and several customer projects are significantly
delayed or are at risk of being cancelled. In addition, Nel has initiated a
process to retain control over delivered equipment as compensation for more-than
-one-year overdue receivables (from an undisclosed customer) as communicated in
previous financial reports. As a result, Nel has limited need to produce new
alkaline electrolyser equipment in the near-term and will adjust its production
and organizational capacity correspondingly.

"While the long-term outlook for clean hydrogen remains strong, we must make
some tough decisions today based on lower order intake in 2024 than expected,"
says Nel's President and CEO, Håkon Volldal. "This is an unfortunate situation,
and I'm sorry that we now have to let go of many qualified people."

Nel has decided to halt production in Herøya temporarily. This will
predominantly impact the Norwegian workforce in the Alkaline business segment.
The planned reductions will affect roughly 20% of the full-time employees
reported at the end of the third quarter 2024. Approximately half of the
reductions have already been executed in the fourth quarter of 2024 through
voluntary resignations and termination of consultants.

"The company remains well financed, and with these actions we will preserve cash
while still being able to aggressively pursue sales opportunities and invest in
technology development," says Kjell Christian Bjørnsen, CFO of Nel.

Nel continues to see a strong pipeline of clean hydrogen projects and is
actively working on several concrete bids, including projects where Nel is
currently undertaking paid front-end engineering design (FEED) studies. Nel also
sees good near-term opportunities to sell containerized PEM systems. The company
will also continue to further develop its current and next-generation technology
platforms.

ENDS


For additional information, please contact:
Kjell Christian Bjørnsen, CFO, +47 917 02?097
Wilhelm Flinder, Head of Investor Relations, +47 936 11 350
Lars Nermoen, Head of Communications, +47 902 40 153

About Nel ASA | www.nelhydrogen.com
Nel has a history tracing back to 1927 and is today a leading pure play hydrogen
technology company with a global presence. The company specializes in
electrolyser technology for production of renewable hydrogen, and hydrogen
fueling equipment for road-going vehicles. Nel's product offerings are key
enablers for a green hydrogen economy, making it possible to decarbonize various
industries such as transportation, refining, steel, and ammonia.

This information is subject to a duty of disclosure pursuant to Section 5-12 of
the Norwegian Securities Trading Act. This information was issued as inside
information pursuant to the EU Market Abuse Regulation, and was published by
Wilhelm Finder, Head of Investor Relations, at NEL ASA on the date and time
provided.

More information:
Access the news on Oslo Bors NewsWeb site

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