Norway-based electrolyser manufacturer Nel says its backlog of firm orders at the end of the third quarter was up 8pc year-on-year but down slightly on the previous quarter as orders are getting bigger and taking longer to close.

The value of the order backlog stood at NOK1.01bn ($122mn), with order intake during the quarter totalling NOK139.2mn, according to Nel, the world’s largest pure-play hydrogen electrolyser maker by revenue.

The company’s pipeline of potential orders continues to grow and now stands at a total of 11GW of capacity worth $6bn. The pipeline includes a single order for 1.6GW of electrolyser capacity, potentially Nel’s largest-ever single sale.

“It is encouraging to see the pipeline of potential projects continue to grow even if orders are taking longer to close as order sizes increase and public funding mechanisms are taking some time to implement,” says Nel CEO Jon Andre Lokke.

1.6GW – Largest single potential order in pipeline

The company produced the first batch of electrodes from its new automated plant at Heroya in Norway in Q3.

“We remain confident in the long-term potential of the green hydrogen industry and reiterate the strong growth outlook,” says Lokke.

“With the new production facility at Heroya up and running, we remain confident that Nel is well suited to capitalise on the opportunities with our proven track record, market-leading position and global delivery and execution muscle.”

Nel reported record revenues of NOK229.3mn in the third quarter of 2021, up 55pc year-on-year. But Ebitda showed a loss of NOK113mn, widening from a loss of NOK42.1mn in the same period last year, partly because of costs relating to the ramp-up of the Heroya plant.

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Author: Stuart Penson