Updated October 7, 2026. This article is for educational purposes only and is not investment advice. Company figures come from Nel’s public reports and can change quickly.
Interested in the hydrogen industry? You may have come across Nel ASA (Oslo Stock Exchange: NEL), a Norwegian company that makes electrolysers, the machines that split water into hydrogen and oxygen using electricity. This guide covers Nel’s history, what the company does today, how to read its results, the main risks and how investors outside Norway can buy the shares.
What Is Nel ASA?
Nel traces its electrolyser heritage back to 1927, when Norsk Hydro began building large water electrolysis plants at Notodden and Rjukan in Norway to produce hydrogen for fertilizer. The modern company was listed on the Oslo Stock Exchange in 2014 and grew through acquisitions, including Proton OnSite in the United States in 2017, which added PEM (proton exchange membrane) technology.
In June 2024, Nel spun off its hydrogen fueling station business as a separate listed company, Cavendish Hydrogen. Since then, Nel has been a pure-play electrolyser company, so older articles that describe it as a fueling station supplier are out of date.
What Does Nel Do?
Nel designs and manufactures equipment that produces “green” hydrogen when it runs on renewable electricity. It reports two main segments:
- Alkaline electrolysers: large systems built at its factory at Herøya, Norway, aimed at industrial-scale projects. Nel is also developing a next-generation pressurized alkaline electrolyser and has started building a production line for it at Herøya.
- PEM electrolysers: produced mainly in Wallingford, Connecticut. These range from small units for laboratories and industry to containerized systems for projects in the 10 to 50 megawatt range, which accounted for most of its recent orders.
Hydrogen made this way can replace hydrogen produced from natural gas in refineries and fertilizer plants, and could be used in steelmaking, heavy transport, shipping fuels and energy storage.
The Investment Case Supporters Point To
- Long-term decarbonization demand: many governments, especially in Europe, have targets and subsidies for clean hydrogen.
- Experience and technology range: Nel is one of the few companies offering both alkaline and PEM technology, with a long track record of deliveries.
- Cost reduction: containerized PEM systems and the new pressurized alkaline design are intended to lower upfront costs and installation space for customers.
- Partnerships: Nel has a technology licensing agreement with India’s Reliance Industries, which gives its technology access to markets it would struggle to serve alone.
Risks of Investing in Nel ASA
- Slower hydrogen market: many large green hydrogen projects have been delayed or canceled because hydrogen from electrolysis still costs more than hydrogen from natural gas. Nel has adjusted its costs and factory utilization to weaker demand.
- Losses and cash burn: Nel is not profitable. In the second quarter of 2026 it reported revenue of NOK 153 million, a negative EBITDA of NOK 155 million and a cash balance of NOK 1,328 million. Ongoing losses could eventually require new share issues, which dilute existing shareholders.
- Lumpy orders: order intake and backlog can swing sharply from quarter to quarter. At the end of Q2 2026, the order backlog was NOK 1,213 million, and Nel warns that backlog can be affected by delays and cancellations.
- Policy dependence: demand depends heavily on subsidies and regulation, such as EU hydrogen targets and US clean hydrogen tax credits, which have been scaled back. Policy changes can move the stock.
- Competition: Nel competes with Western peers such as ITM Power, thyssenkrupp nucera and Plug Power, and with low-cost Chinese electrolyser makers.
- Volatility: hydrogen stocks rose sharply in 2020 and 2021 and then fell a long way. Large price swings are normal for this sector.
How to Analyze Nel Stock
Because Nel is loss-making, the price-to-earnings ratio is not useful. Investors usually look at:
- Order intake and backlog by segment: new orders show whether demand is recovering; backlog shows future revenue.
- Cash balance and cash flow: how long the company can operate before it needs new funding.
- Price-to-sales and enterprise value to backlog: rough ways to compare Nel with other electrolyser makers.
- Project final investment decisions (FIDs): Nel’s customers must commit to projects before large orders follow.
- Policy news: subsidy auctions and tax-credit rules in Europe and the US.
Nel publishes quarterly reports and presentations on its investor relations page, usually in January or February, April, July and October.
How to Buy Nel Shares from the US or UK
Nel’s main listing is on the Oslo Stock Exchange under the ticker NEL, priced in Norwegian kroner (NOK). Some international brokers offer direct access to Oslo. In the US, Nel shares also trade over the counter (OTC), where trading volumes are much lower and bid-ask spreads can be wider. Whichever route you use, remember that your return also depends on the exchange rate between NOK and your home currency.
Conclusion
Nel ASA is a long-established electrolyser maker with a clear focus on green hydrogen equipment. Its future depends on whether the hydrogen market grows as fast as supporters expect, on its ability to win orders at profitable prices and on how long its cash lasts. That makes it a speculative, high-risk stock. If you are interested in clean energy, compare it with diversified options in our guide to investing in sustainable energy.
FAQs
What is Nel ASA’s ticker symbol?
NEL on the Oslo Stock Exchange. Check your broker for the correct OTC symbol if you trade from the US.
Does Nel ASA pay a dividend?
No. Nel is loss-making and does not pay a cash dividend. In 2024, shareholders received shares in Cavendish Hydrogen when the fueling business was spun off.
Is Nel still in the hydrogen fueling business?
No. The fueling business became Cavendish Hydrogen in June 2024. Nel now focuses on electrolysers.
Who are Nel’s main competitors?
Electrolyser makers such as ITM Power, thyssenkrupp nucera, Plug Power, Siemens Energy and several Chinese manufacturers.
Where can I find reliable information about Nel?
Nel’s quarterly reports and stock exchange announcements on its investor relations website, and the Oslo Stock Exchange’s news service.
Disclaimer: this article is general information, not a recommendation to buy or sell any security. Please read our Disclaimer.
