The comeback is here: How to capitalize on the hydrogen boom with Plug Power, First Hydrogen, and Nel ASA

Plug Power – Financial respite, but the road ahead remains steep

For Plug Power, the last quarter was marked by crucial financing decisions. The Company successfully raised approximately USD 431 million through convertible bonds. After deducting costs, this leaves a net amount of approximately USD 399 million, which will be explicitly used to strengthen the balance sheet. This will not only enable Plug to pay off expensive legacy debt with interest rates of up to 15%, but also extend the term of its liabilities to 8 years. This restructuring significantly reduces the interest burden and takes the pressure off short-term repayments. This gives management the much-needed financial flexibility to continue on its chosen course without having to monitor cash flow constantly.

The hydrogen specialist's operating figures continue to paint a mixed picture. With revenue of USD 177 million in the third quarter, the Company grew minimally. The driver was the electrolysis business, which recorded strong sequential growth. The improvement in cost discipline is noteworthy. The adjusted gross margin, which excludes special items, has improved significantly year-on-year. Nevertheless, Plug continues to post an adjusted gross loss. Operating cash flow remains negative, but has improved considerably compared to previous periods. Uncommitted cash amounted to USD 166 million at the end of the quarter.

Strategically, Plug Power is focusing on two areas. On the one hand, it is driving forward its existing core businesses. Over 230 MW of electrolysis projects are being implemented worldwide, and the Company continues to report customer momentum in the material handling sector. On the other hand, the Company is undergoing a remarkable strategic shift. Plans for its own hydrogen production facilities will not be pursued for the time being; instead, the Company is focusing on long-term supply contracts with an established industrial gas supplier. At the same time, electricity rights at two locations are being monetized, which is expected to relieve the balance sheet by over USD 275 million and initiate a cooperation with a data center operator. The stock is currently trading at USD 1.98.

First Hydrogen - Focuses on small reactors for green hydrogen

While the world is searching for scalable solutions for clean energy, First Hydrogen is focusing on a promising branch of nuclear technology. The focus is on small, modular reactors, known as SMRs. These compact power plants are intended to drive the reliable and weather-independent production of green hydrogen in the future. To advance this goal, the subsidiary First Nuclear Corp. was founded specifically for this purpose. The strategy is particularly aimed at off-grid industrial and remote locations where a stable, emission-free energy supply is crucial. A technical cooperation with the University of Alberta is intended to accelerate SMR development in areas such as reactor design and cooling technologies.

In addition to the technology, the Company is receiving tailwinds from political and market developments. The Canadian government has designated the Darlington SMR project a national priority and is expediting its approval. These signals from politicians are facilitating First Hydrogen's discussions with utilities and regional partners. At the same time, the European Union is creating a concrete market with its new "H2 Matchmaking" platform, which brings together supply and demand for clean hydrogen. These initiatives reduce project risk and open up broader sales opportunities for the planned hydrogen vehicles and SMR-based energy production.

Current research with the University of Alberta is focused on identifying non-radioactive molten salt fuel mixtures for future laboratory prototypes. This early, low-risk research phase is an important step in accelerating the commercial scaling of SMR technology in the long term. A key driver of future energy demand is the exponential power consumption of AI data centers. With its SMR strategy, First Hydrogen is thus positioning itself at the intersection of two growth areas. On the one hand, the aim is to drive forward the reliable decarbonization of industry and on the other hand, to secure the power supply for the digital infrastructure of the future. The share is currently trading at CAD 0.455.

Nel ASA – Between short-term setbacks and long-term opportunities

Nel's latest quarterly figures highlight the ongoing challenges in the hydrogen market. Revenue from customer contracts fell to NOK 303 million, down 17% year-on-year. However, the operating result (EBITDA) of minus NOK 37 million is a significant step forward compared to the same quarter last year. Particularly striking is the weak order intake of only NOK 57 million, which caused the order backlog to shrink. On a positive note, the solid cash position of around NOK 1.8 billion gives the Company room for further development.

However, recently received large orders give hope for a turnaround. A firm order for two 20 MW PEM plants in Norway with a volume of over USD 50 million is the second largest in the Company's history. This was followed shortly afterwards by an agreement for at least 20 MW at two further locations with project developer GreenH. These projects not only strengthen visibility but also demonstrate the competitiveness of the PEM platform for larger installations and will significantly improve capacity utilization from 2026 onwards.

The strategic focus remains clearly on cost discipline and technology leadership. While the current market weakness is weighing on the figures, Nel is working intensively on the next generation of equipment. A compact high-pressure alkaline solution, scheduled to be launched in 2026, promises significantly lower total investment costs. Together with automated gigawatt factories and strong partners such as General Motors, Nel could be well-positioned once the hydrogen market gains momentum. The share price is currently NOK 2.37.

The hydrogen comeback is gaining momentum, driven by global decarbonization targets and infrastructure programs. Plug Power has bought itself valuable time to continue its course with a financial restructuring. First Hydrogen is focusing on a technology-driven niche strategy for off-grid locations and decarbonization using hydrogen with small modular reactors. Nel ASA, on the other hand, has solid liquidity and is already benefiting from major orders that confirm its technological leadership in electrolysers. Despite short-term fluctuations, all three companies are strategically positioning themselves to benefit from the surge in demand for hydrogen.