Nel ASA

Board/Management Information • Jan 13, 2025

Nel ASA: Adjusts capacity to market demand

Nel ASA: Adjusts capacity to market demand

(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.