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HydrogenPro : Interim Report Q3 2025 - Presentation
HydrogenPro : Interim Report Q3 2025 -
About this update from Hydrogenpro Asa
Q3 2025 Presentation 14 November 2025 Agenda › Introduction › 2025Q3 Highlights › Financials › Market & Regulatory Update › Operational Update Q&A Serving industrial applications and hard-to-abate sectors Synthetic fuel Power-To-Gas Refinery/ Decarbonization Balancing the grid H 2 + O 2 Steel Production Fertilizer/ ammonia Global provider of large-scale pressurized green hydrogen systems and game-changing electrode technology Renewables H 2 O Water 4 HydrogenPro delivers to 2 of the 10 largest projects (excl. China) SALCOS ® (Electrolyzer capacity MW p.a.) ACES 5 Source: IEA "Hydrogen production projects" database Agenda › Introduction › 2025Q3 Highlights › Financials › Market & Regulatory Update › Commercial & Operational Update Q&A 2025Q3 Highlights 1 2 3 Revenues of 35 MNOK in Q3 vs. 13 MNOK in Q2 Gross margin of 55% in Q3 vs. 22% in Q2 Expanded testing hours to ensure electrolyzer optimization and quality control 4 5 6 Partnership with Thermax progressing well Strengthening our footprint in Middle East Appointment of new Chief Commercial Officer, effective from 1 st of December Agenda › Introduction › 2025Q3 Highlights › Financials › Market & Regulatory Update › Commercial & Operational Update Q&A NOK million Q3 2025 Q2 2025 Q3 2024 Revenue from contracts with customers 35 13 72 Direct materials 16 10 53 Gross profit 19 3 19 - - Gross margin 55 % 22 % 26 % Personnel expenses Other operating expenses - - 36 32 40 28 19 18 EBITDA -45 -48 -38 Depreciation and amortization expenses 6 5 6 EBIT -51 -54 -44 Net financial income and expenses -3 -22 6 Profit/(loss) before income tax -54 -76 -38 Income tax expense 0 - - Profit/(loss) -54 -76 -38 Key P&L items › Q3 revenues mainly related to ACES project › SALCOS project: 3rd Gen electrode technology supplied from Denmark commenced in the quarter › Gross margin in third quarter 2025 of 55% in Q3 vs. 22% in Q2 › Personnel expenses: increased mainly due to severance pay related to the reduced activity in Tianjin › Other opex increase driven by project delivery and lower grants (reduced deduction of expenses) NOK million Q3 2025 Q2 2025 Q3 2024 Cash balance start of period 107 165 247 EBITDA -45 -48 -38 Changes in NWC & other -3 -6 -3 Investments -6 -2 -15 Financing 68 -1 -3 Total changes in cash 14 -58 -59 Cash balance, changes in cash and backlog › Investments in the third quarter mainly related to expansion of electrode manufacturing capacity in Aarhus › Total budget of NOK 60 million whereof NOK 42 million is completed as of 30 Sep 2025 Cash balance end of period 121 107 188 › Manufacturing line is fully operational, with remaining investments related to further improvements Backlog 252 284 340 › Financing mainly reflects LONGi Hydrogen's equity investment of NOK 70 million completed in July Completed cost savings target of > 40 MNOK p.a. Our strategy with strong partners enables global reach with lean operations and low costs Annualized cost savings (MNOK) > 40 > 25 › Group-wide cost measures include i) downsizing in Europe, ii) reduced cost in our China operations and iii) reduced use of external consultants. Project execution not impacted › Continued sharp focus on cost discipline › Further cost measures to be implemented in line with market activity Achieved as of 30 June 2025 Achieved as of 30 September 2025 147 89 FTEs Headcount reduction driven by reduced work force in Tianjin Not in scope: one-off expenses and all project-related expenses, incl. upstaffing in Denmark and H2 Giga project preparations. Agenda › Introduction › 2025 Q3 Highlights › Financials › Market & Regulatory Update › Commercial & Operational Update Q&A Slow market: only 30% of clean hydrogen projects advanced in two years… 12% 12% 9% 7% Hydrogen Projects by Development Stage (# of projects) 11% 17% 8% 73% Completed Construction & Commissioning Approval FEED (Front-End Engineering Design) Feasibility Source: Bain Analysis Dec 2022 Pipeline 50% Dec 2024 Status of the 2022 Pipeline …while 90% of 2023/24 COD projects face 1+ year delays Hydrogen Projects by Expected Start Year (# of projects) 100% 90 80 70 60 50 40 30 20 10 0 ~160 ~200 ~260 ~140 ~200 COD status Dec 2024 >3yr Delay 3yr Delay 2yr Delay 1yr Delay Same Date/Accelerated Source: Bain Analysis 2023 2024 2025 2026 Post-2026 Despite near-term challenges, solid progress shows strong fundamentals From 2021 to 2025, green hydrogen has advanced significantly in investment, capacity and policy Electrolyzer Installed Capacity (GW) Number of Countries with Hydrogen Strategies 4.9 +145% +43% +100% +17% 85 60 54 30 23 Investment in Electrolyzer & CCUS projects (Billion USD) 2021 2022 2023 2024 2025 1.0 2.4 4.3 7.9 2021 2022 2023 2024 2025 0.5 Source: Global Hydrogen Review (GHR) 2025 Regulation in key regions is maturing Region Date Regulatory Body & Action Detail The U.S June 2025 Senate Action on 45V Clean Hydrogen Production Tax Credit Extended the construction start deadline for the 45V tax credit by 2 years, now set for December 31, 2027 European Union June 2023 (Adoption) RFNBO Delegated Acts Established complex criteria for 'renewable hydrogen'. In 2025Q3, strong industry pressure to ease these criteria could unlock a wave of European FIDs European Union May 20, 2025 (Announcement) European Hydrogen Bank Second Auction Results Awarded €992 million across 15 projects, aiming to produce 2.2 million tons of renewable hydrogen over ten years, reinforcing market price signals European Union July 8, 2025 (Adoption) Delegated Act on Low-Carbon Hydrogen Methodology Completed the EU's hydrogen regulatory framework by defining "low-carbon" status, requiring 70% GHG emission savings vs. fossil fuels European Union November 5, 2025 European Commission Unveiled the €3 billion Sustainable Transport Investment Plan to boost renewable and low-carbon fuels in aviation and shipping India Mid-2025 National Green Hydrogen Mission (NGHM) Capacity Allocation 19 companies have been allocated a cumulative annual production capacity of 862 000 tons of Green Hydrogen every year, turning policy into firm commitments India March 2024 (Guidelines) SIGHT Program - Electrolyzer Incentives (Tranche II) Issued Strategic Interventions for Green Hydrogen Transition to promote domestic green hydrogen supply chains Oman Q4 2025 (Deadline) Hydrom Fiscal Incentives for Third Auction Introduced a 90% reduction in land lease fees and up to 10 years of corporate tax exemptions to accelerate FIDs UAE 2024 (Planned Rollout) Abu Dhabi Carbon Certification Framework Planned rollout of carbon certification system for the hydrogen industry to ensure regulatory certainty and facilitate international trade Global October 2025 International Maritime Organization IMO voted to delay adoption of a net zero framework (NZF) for one year Stated policies chart the path to a large potential for green hydrogen Green Hydrogen Production (million tons) 0.14 2024 (Current context) › IEA's World Energy Outlook 2025 projects that by 2035, green hydrogen production and installed electrolyzer capacity will grow roughly 70x under the stated policies scenario 10 2035 (Stated policies scenario) › This scenario reflects adopted policies, proposed measures, and policy intentions backed by market and infrastructure support Source: World Energy Outlook 2025 by International Energy Agency Agenda › Introduction › 2025Q3 Highlights › Financials › Market & Regulatory Update › Commercial & Operational Update Q&A Changes to the Management Team Effective from 1 st December 2025: Michael Caspersen will join HydrogenPro in the position as Chief Commercial Officer › PhD in hydrogen technology › 14 years of experience across the energy landscape and Hydrogen › Hydrogen industry "incumbent", starting his career commercializing electrolyzers › Industry background includes various technical and commercial roles in Siemens › Last position: Associate Director at BCG, where he worked across the hydrogen value chain with strategic agendas and commercializing technology ACES starting up, SALCOS in assembly PROJECT SIZE & USE SCOPE STATUS & NEXT STEPS ACES (USA) › 220 MW › Renewable fuel for power generation › Electrolyzer stacks + gas separator › 2nd gen technology › All trains have been through the initial start-up phase › Next milestone is to operate all trains in parallel SALCOS (GERMANY) › 100 MW › Green steel production › Electrolyzer stacks › Partly 3rd generation technology › Production and deliveries of Gen 3 are progressing, with all stacks scheduled for delivery by Q1 2026. Progressing on rollout in Indian market… Thermax Collaboration Spectrum - Key Highlights Update on the Partnership in 2025Q3 3 Deep tech collaboration on engineering and localization of sub-systems and components 2 Local manufacturing & Co-development of gas separation units. 1 Exclusive rights in India for alkaline electrolyzer systems, including after-sales and upgrades. › Access to an emerging market via a well-connected partner, potentially generating substantial order intake of 50-100+ MW starting H1-2026 with massive longterm growth 4 A provision to set up a stack assembly facility › Joint technology development (like GSS, built under license in India), with innovations usable in other markets 5 Lifecycle support with O&M and refurbishment facilities › Accelerated discussions about Thermax becoming a stacking partner in India 6 A short stack test station will be established at Thermax to jointly develop advanced solutions for emerging markets …and establishing foothold in the UAE Green Hydrogen Price at Production Location Country 2023 LCOH (USD/kg) 2030 LCOH (USD/kg) UAE 2.7 1.7 India Saudi Arabia Chile Chinese Mainland Egypt United States Australia Argentina United Kingdom 1.8 › HydrogenPro is working closely with UAE partners across government, academia, industry stakeholders to localize advanced electrolyzer technologies and empower local talent › HydrogenPro aims to be a major player in the UAE's hydrogen ecosystem, aligning with the 'National Hydrogen Strategy' of 1.0 million tons of green hydrogen by 2031, UAE Net Zero 2050 Initiative and 'Operation 300bn' UAE has the lowest LCOH and is expected to maintain this advantage through 2030, making it a highly cost-competitive hub for green hydrogen 3.2 2.9 3.4 3.1 3.8 3.9 4.5 5.2 5.0 1.8 2.1 2.4 2.3 2.5 2.7 3.1 3.5 Source: Green Hydrogen - India's Opportunity for a Strategic Shift in Global Energy Trade by Alvarez & Marsal LCOH: Levelized Cost of Hydrogen. Levelized costs denote a single price which will be paid during the entire tenure of the contract/project. HydrogenPro's partnerships enable full scope delivery on large-scale project, combining bankability, guarantees, quality Target customers Green hydrogen project - key components Customers key selection criteria 1 Electrolyzer system 2 › Technology › Leading developers of renewable energy hubs for green hydrogen production Electrolyzer technology Gas separator skids Balance of Plant › Cost › Track record Electrolyzer assembly Electrode technology › Customers include global players in green steel, ammonia, and grid operations. › Bankability 3 › Quality assurance EPC › Local content › ESG Single interface › "EPC wrap" via ANDRITZ & Thermax with single interface to simplify & standardize › "H2 module" via JHK: modular turnkey solution for small-scale Aligned risks & guarantees › Increased lender confidence & bankability via EPC balance sheet & contract consolidation › Guarantee support through EPC holding risk on balance sheet Joint product development › Technical feedback loop via performance data access to learn and improve › Knowledge & capability exchange with EPC to optimize total system Clear roles & responsibilities › Wider customer reach through partner allows lean internal sales team › Efficient market expansion through local partners Gen 3 electrodes: quality scale-up supported by 200k test hours › Coating Line 1 (Aarhus, Denmark) is fully operational, producing Gen 3 SALCOS electrodes with consistency and driving major gains in productivity and output toward full capacity › HydrogenPro has logged: 200 000 hours of testing 1 000 lab experiments showing its high-throughput capability for rapid electrode optimization and ensuring solid quality in current production Improved electrolyzer development results… Full-scale test 2 Stack Design Version 1 Stack Design Version 2 NextGen Stack › New and improved stack featuring: Better electrodes Lower shunt current through modified stack design › Result: Lower specific energy consumption More hydrogen produced per stack, particularly at low loads …and optimization goals for full-scale electrolyzers Performance › Demo shunt current design improvements › Higher H 2 yield › Better flow distribution › Lower energy consumption › Improved electrodes › 15 barg › Optimized shunt current design and higher H 2 yield › Better flow distribution › Lower energy consumption › Lower weight (CAPEX) › Improved electrodes › 30 barg › Total optimization of electrolyzer stack and Gas Separator Skid design and materials (lower CAPEX) › 50-70% higher current density › Improved electrodes › 30 barg 2026 2028 2030 Time *TRL 8 = Technology Readiness Level 8, last step before full commercialization Maintaining a robust sales pipeline › Maintaining a robust pipeline, though market fluctuations have delayed FIDs by at least a year. › Government funding and regulatory compliance are key enablers for project commitment › Most European leads (20-200 MW) now target FIDs in 2026, with strong traction alongside partners ANDRITZ and JHK › In the U.S., progress is gradual under current policies, but incentive-awarded projects still hold potential. › A strong pipeline is being built with Thermax in India. › In North-Africa, high-potential projects are progressing with established developers Key investment highlights Vast TAM and massive growth potential for green H 2 underpinned by secular tailwinds Favorable government policies provide critical support; new end markets unlock a bigger TAM for green H 2 HydrogenPro's 3rd-generation technology drives significant LCOH reductions Technology developed for 10+ years with extensive R&D efforts Substantial commercial traction with ACES hub and ANDRITZ contracts Manufacturing for 220MW ACES project completed; 100MW ANDRITZ project in progress Manufacturing capacity in place to service demand today with plans to expand globally Existing 350 MW electrode capacity in Denmark and 500MW electrolyzer capacity in China Market leading global provider of large-scale green hydrogen technology & systems Scalable business model positioned to grow Recurring revenue and optimized production systems World-class leadership team with deep industry knowledge Management team brings valuable insights and execution capabilities in the hydrogen sector 28 POWERING INNOVATION? ENERGIZING TOMORROW. HydrogenPro Attention : This is an excerpt of the original content. To continue reading it, access the original document here .