Hydrogen at a crossroads: Plug Power, Pure Hydrogen, and Nel ASA between opportunity and crisis – Your profit strategy

Plug Power – Upswing with hurdles

Plug Power delivered solid figures in the first quarter. Revenue rose 11% to USD 134 million, driven by electrolysers, material handling and cryogenic technology. Nevertheless, profitability remains the big challenge. Loss per share was USD 0.21, which was better than in the previous year but below analysts' expectations. The gross margin improved significantly from -132% to -55% thanks to cost reductions and more efficient supply chains. However, there is still a long way to go before the Company returns to profitability. This remains a critical issue for investors, even if the Company is heading in the right direction.

The liquidity situation has eased. Plug Power halved its cash burn, successfully placed shares worth USD 280 million, and secured a credit line of USD 525 million. At the end of the quarter, around USD 300 million was available. A government loan guarantee of USD 1.66 billion for the construction of up to six green hydrogen plants in the US is crucial. These projects are central to the planned capacity increase to 500 tons of hydrogen per day by the end of 2025. This creates prospects, but requires further high investments.

Operationally, the Company focuses on three pillars: material handling, electrolysers, and hydrogen supply. With "Quantum Leap," it is aiming for annual savings of over USD 200 million to get on the path to profitability. Although industry is growing thanks to the energy transition and US subsidies, political uncertainties and new tariffs on Chinese imports are clouding the outlook. In the short term, the focus will remain on margins. The question remains: Can Plug Power become big enough before the money runs out? Recently, more investors have become convinced that it can, including CFO Paul Middleton, who bought shares on a large scale. Since then, the share price has climbed to USD 1.62.

Pure Hydrogen – More than just vehicles

The last few weeks have brought tangible progress for the Australian company Pure Hydrogen. After reporting a 715% jump in revenue to AUD 1.65 million in the six months to December 2024, the following quarter to the end of March 2025 saw a significant slowdown. At AUD 2.164 million, revenue exceeded the previous half-year by around AUD 500,000. This enabled Pure Hydrogen to generate positive cash flow from operating activities of around AUD 398,000 for the first time. This is an important signal for financial stability during growth.

In parallel with its operational consolidation, Pure Hydrogen is pushing ahead with its global presence. In addition to its established commitment in North America, the Company secured a strategic distributor for the entire South American market in July. The partnership with FRN Enterprise from Argentina opens doors for vehicles and infrastructure. At the same time, it is cleverly exploiting Nikola's insolvency in North America. Through partnerships with former Nikola dealers, it is tapping into the US network, benefiting from favorable customs conditions for Australian vehicles. Initial demo tours in California are already underway. Previously, the framework agreement with GreenH2 LATAM, worth AUD 44 million, had already shown that the equipment business is gaining traction internationally. Income from payments reached over AUD 1.3 million in April, a clear further indication of the Company's implementation strength.

The granting of 15-year PCA status for the Windorah Gas Project in Queensland by the government was legally significant – a milestone for the planned spin-off of the gas assets under "Eastern Gas". Pure Hydrogen is also making clever use of government funding instruments. The Company expects to receive approximately AUD 1.1 million in Australian research grants in 2025, following a total of AUD 1.86 million in previous years. These funds will support the development of emission-free technologies. The 40% stake in the Turquoise Group also has potential for value appreciation, as the Company produces graphene powder, the new wonder material, and hydrogen. At the beginning of July, the share price shot up by a good 60% and has since consolidated to its current level of AUD 0.094.

Nel ASA – Hydrogen pioneer in a strategic field of tension

Norwegian hydrogen specialist Nel ASA remains a key name in the emerging but challenging market for green energy solutions. The Company is currently navigating between promising strategic initiatives and ongoing operational challenges. While global decarbonization targets and political support programs in Europe and the US provide long-term tailwinds, Nel is struggling in the short term to translate these into concrete, profitable business. The latest quarterly figures clearly underscore this discrepancy.

Nel has forged important strategic partnerships, most notably with South Korean industrial giant Samsung E&A, which has become the largest single shareholder with a 9.1% stake. This alliance aims to market Nel's electrolyzer technology through Samsung's global networks and open up new markets, particularly in Asia. At the same time, substantial EU subsidies are flowing into the industrialization of new pressure alkaline electrolysis technology and the expansion of production capacities in Norway to up to 4 gigawatts. Expansion is also underway in the US with a new PEM electrolyzer factory. These initiatives aim to reduce costs and strengthen the Company's competitive position through scaling.

Despite these positive signals, the current operating performance shows weaknesses. Significant declines in revenue, particularly in the core business with alkaline electrolyzers, and the absence of new large orders are weighing on the balance sheet. Several major projects have been canceled, fueling uncertainty. Although solid liquidity and the existing order backlog provide breathing space, the road to profitability is rocky. At the same time, pressure is growing from competitors such as thyssenkrupp nucera and Plug Power, which are also investing heavily. Nel ASA shares are currently trading at EUR 0.231.

The hydrogen industry is facing a market-defining turning point in 2025: only those who master scaling, profitability, and political volatility will survive. Plug Power is stabilizing its liquidity thanks to billions in government loans, new credit lines, and reduced cash burn, but continues to struggle with losses and must prove that it can also make a profit. Pure Hydrogen scores with its first positive operating cash flow, global expansion into America, and clever use of subsidies. Despite strategic partnerships and EU funding, Nel ASA is suffering from weak operating performance, declining revenue and project cancellations. The discrepancy between future investments and current profitability is striking.