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Introduction & Market Context
HydrogenPro AS (OB:HYPRO) presented its Q1 2025 financial results on May 15, highlighting progress on flagship projects and technological advancements despite continued losses. The Norwegian green hydrogen technology provider is positioning itself in the rapidly growing hydrogen market, which is projected to expand at a 49.5% CAGR through 2035, reaching a market size of USD 125.3 billion.
The company’s stock closed at NOK 3.99 on May 14, near its 52-week low of NOK 3.70, reflecting ongoing investor concerns about the path to profitability despite technological progress and strategic partnerships.
Quarterly Performance Highlights
HydrogenPro reported Q1 2025 revenue of NOK 22 million, primarily related to deliveries for the SALCOS project with ANDRITZ. This represents a significant increase from Q1 2024 (NOK 4 million) but a substantial decrease from Q4 2024 (NOK 70 million). The company achieved a gross profit of NOK 7 million with a 32% gross margin, down from 41% in the previous quarter.
As shown in the following financial performance table, EBITDA remained negative at NOK -50 million, slightly worse than the NOK -44 million reported in Q4 2024:
The company’s cash balance decreased to NOK 165 million at the end of Q1 2025, down from NOK 191 million at the end of Q4 2024. This decline was primarily due to negative EBITDA (NOK -50 million), changes in working capital (NOK -23 million), and investments (NOK -22 million), partially offset by financing activities (NOK 68 million) including equity injections from strategic partners.
HydrogenPro’s backlog increased slightly to NOK 318 million, up from NOK 305 million in the previous quarter. The company was awarded a USD 2.5 million purchase order during the quarter and noted that ANDRITZ will order a 100 MW electrolyzer unit for a project in Germany.
Strategic Initiatives
HydrogenPro continues to make progress on its flagship projects. The ACES project (220 MW) in the USA, focused on renewable fuel for power generation, has completed manufacturing with installation and commissioning planned for 2025. The SALCOS project (100 MW) in Germany, aimed at green steel production, has manufactured its main components with electrode delivery, installation, and commissioning scheduled for 2025/2026.
As shown in the following project overview:
The company has established strategic partnerships to enable full-scope delivery on large-scale projects globally. These partnerships with companies like ANDRITZ, LONGI, and J.H.K. allow HydrogenPro to address different market segments and provide comprehensive solutions to customers.
HydrogenPro has implemented cost reduction measures expected to yield over NOK 40 million in annual savings. These measures include downsizing in Europe, reduced use of external consultants, reducing Tianjin manufacturing activity, and making the Shanghai office "dormant." However, the company noted that these savings are partly offset by costs related to increased activity in Denmark to produce electrodes for the SALCOS project.
Technological Advancements
A key focus for HydrogenPro is its technological development, particularly its 3rd generation electrode technology. The company completed a successful large-scale validation test that confirmed performance improvements, with the 3rd generation electrodes showing 12-14% efficiency improvement over previous generations.
The company’s technology roadmap focuses on continuously improving electrolyzer performance to lower costs. HydrogenPro is taking a phased approach, with plans to establish a new pilot center, increase stack pressure from 15 to 30 bar, and develop new versions of its stack and gas separation technology through 2028.
The company has also started up a new 350 MW manufacturing capacity for 3rd generation technology in Aarhus, Denmark. This facility was delivered on time and below budget (NOK 70 million) and is part of the EU-funded H2-GIGA project, which provided a grant of €16.5 million.
Market Positioning and Outlook
HydrogenPro is focusing on key markets where green hydrogen adoption is accelerating. The company highlighted that it delivers two of the ten largest hydrogen projects (excluding China) estimated to come online in 2025.
The company is targeting hard-to-abate sectors such as steel production, fertilizer/ammonia, and synthetic fuels, where hydrogen offers significant decarbonization potential. HydrogenPro has established a footprint in Europe and North America and is increasing its focus on India and the Middle East.
Looking ahead, HydrogenPro’s project pipeline consists of 177 projects representing 39.6 GW and USD 10.8 billion in potential value. Of these, 69 projects have been prioritized, representing 13.3 GW and USD 4.4 billion. The company has concluded Front-End Engineering Design (FEED) on some projects with high probability to reach Final Investment Decision (FID).
The company’s investment thesis centers on the vast total addressable market for green hydrogen, its technological advantages with 3rd generation electrodes, commercial traction with major projects like ACES and SALCOS, established manufacturing capacity, and a scalable business model.
While HydrogenPro continues to show progress on strategic initiatives and technological development, the company faces challenges in achieving profitability. The equity injections from ANDRITZ and Mitsubishi (completed in January 2025) and the expected investment from LONGI in Q2 2025 provide additional runway as the company works to scale its operations and reduce costs.
Full presentation:
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