The Hydrogen Narrative Reaches a Turning Point: Nel ASA’s European Expansion and Market Sentiment
Nel ASA, a Norwegian hydrogen specialist listed on Oslo Bors ASA, has secured a pivotal partnership with the Scottish energy service provider Hydrasun. The two companies entered into a framework agreement that designates Hydrasun as the European integration partner for Nel’s modular PEM electrolyser platform, the MC Series. This collaboration will bring the final assembly closer to customers in the United Kingdom and the North Sea region while enabling Hydrasun to develop its own production capacity at its Aberdeen site. The electrolyser stacks will continue to be manufactured by Nel at its Wallingford facility in the United States, preserving the company’s engineering expertise while expanding its European footprint.
The partnership is a strategic move for Nel ASA, which operates across three segments: Hydrogen Fueling, Hydrogen Solutions, and Hydrogen Electrolyser. The firm has been expanding its portfolio of H2Station hydrogen fueling stations—designed for fast refuelling of fuel‑cell electric vehicles as well as conventional vehicles such as cars, buses, trucks, and forklifts—and hydrogen plants that rely on water electrolysis technology. By leveraging Hydrasun’s regional presence, Nel can accelerate the deployment of its MC Series electrolyser platform throughout a market that is rapidly embracing renewable‑energy‑derived hydrogen.
Nel’s recent performance, however, underscores a persistent challenge: the company’s stock price has fallen dramatically since its 2021 peak, dropping nearly 94% to 2.07 NOK as of September 9, 2026. The share price has hovered around a 52‑week low of 1.92 NOK, indicating sustained investor scepticism. The negative price‑earnings ratio of –2.31 reflects the company’s ongoing struggle to translate a robust order book into profitability. Analysts have warned that Nel must prove the conversion of its pipeline into real earnings growth if it hopes to reverse the decline.
The broader hydrogen market is being tempered by external factors. Goldman Sachs recently revised its oil‑price outlook, projecting prices up to $120 per barrel in a worst‑case scenario. While higher oil prices do not automatically translate into a windfall for hydrogen stocks, the correlation between energy transition narratives and market sentiment cannot be discounted. The possibility of sustained Middle Eastern disruptions could reinforce the appeal of hydrogen as a decarbonised energy vector, but the translation into share price gains remains uncertain.
Against this backdrop, Nel’s European partnership with Hydrasun is a clear signal that the company is intent on scaling operations and gaining competitive advantage through strategic alliances. If Nel can convert its expanding order book into consistent revenue streams—particularly from the MC Series integration across the UK and North Sea regions—then it may finally close the gap between expectation and performance. Investors will be closely watching the company’s ability to move from the “hopeful” phase of securing contracts to a demonstrable track record of profitability as the sector’s momentum shifts from hype to hard economic fundamentals.
