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HydrogenPro : Year-end Report Q4 2025 - Presentation
HydrogenPro : Year-end Report Q4 2025 -
About this update from Hydrogenpro Asa
Q4 2025 Presentation 27 February 2026 Agenda › Introduction and quarterly highlights › Financials › Commercial 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 Highlights 1 2 3 Pipeline maturing with expected FIDs in 2026 to a potential contract value of NOK ~1bn Commissioning of ACES 220MW project nearing conclusion Ramping up manufacturing of electrodes in Denmark 4 5 6 Streamlining operations with continued cost saving measures HydrogenPro acquired full ownership of manufacturing site in Tianjin, China New Chief Commercial Officer, started 1 st of December 5 Commissioning of ACES 220MW project nearing conclusion Status of commissioning of electrolyzer plant HydrogenPro successfully delivered all stacks per agreement 100% load capacity across all 40 electrolyzer units Compressors have started filling caverns Operational timing & impact Commissioning phase nearing final conclusion. Testing all equipment The ACES I project will be capable of storing hundreds of GWhrs of energy in its two hydrogen salt caverns. Next phase Committed to supporting the LADWP/IPP vision for 100% green hydrogen operations Scaling hydrogen systems to meet the growing demand for large-scale energy transitions. 6 ACES project provides 2-3x greater storage capacity than all installed U.S. grid-connected battery storage 1 1) Source: HydrogenInsight article ( https://www.hydrogeninsight.com/production/exclusive-the-largest-green-hydrogen-project-in-the-us-is-now-95-complete/2-1-1921283 ) Delivering electrodes for 100MW SALCOS project © Salzgitter AG About the project 100MW of pressurized alkaline electrolyzers for green steel Partnering with ANDRITZ to decarbonize Salzgitter's German operations © Salzgitter AG Partly 3rd generation technology adopted Status Main components manufactured Continued increase in manufacturing activity of electrodes in Denmark Next phase Post delivery, HydrogenPro will provide ongoing technical support to ANDRITZ. 8 Cost competitiveness is key to decarbonize Europe with affordable green hydrogen; protectionism will slow industry pace by driving up LCOH Bridging the cost gap vs. fossil energy remains the main hurdle for green hydrogen market scale-up European protective initiative Reduced competition Drives competitiveness outside Europe Slower development pace vs. other parts of world Drives up cost HydrogenPro European OEM with a cost-competitive position High-efficient systems European engineering and R&D Diversified supply chain Cost-competitive manufacturing Lean and cost-efficient organization 9 Agenda › Introduction and quarterly highlights › Financials › Commercial update Q&A Key P&L items NOK million Q4 2025 Q3 2025 Q4 2024 FY 2025 FY 2024 Revenue from contracts with customers 17 35 70 87 196 Direct materials 20 16 41 61 147 Gross profit -4 19 29 25 49 - - Gross margin -23 % 55 % 41 % 29 % 25 % Personnel expenses Other operating expenses - - 30 36 42 137 144 16 28 31 81 109 EBITDA -49 -45 -44 -193 -204 Depreciation and amortization expenses 5 6 6 22 23 EBIT -55 -51 -50 -215 -227 Net financial income and expenses -5 -3 12 -40 27 Profit/(loss) before income tax -60 -54 -38 -255 -200 Income tax expense 16 0 - 16 - Profit/(loss) -44 -54 -38 -240 -200 › Revenue MNOK 17 in Q4 2025 vs. MNOK 35 in Q3 2025, mainly due to lower ACES project revenue › The gross margin in Q4 impacted by ACES costs. Commissioning of ACES project nearing conclusion › Reduction in personnel expenses and other operating expenses driven by continued cost reduction measures and lower project activity 11 Cash balance, changes in cash and backlog NOK million Q4 2025 Q3 2025 Q4 2024 FY 2025 FY 2024 Cash balance start of period 121 107 188 191 161 EBITDA -49 -45 -44 -193 -204 Changes in NWC & other 37 -3 58 5 182 Investments -5 -6 -9 -35 -25 Financing -2 68 -1 134 78 Total changes in cash -19 14 4 -89 31 Cash balance end of period 102 121 191 102 191 › Positive cash impact from net working capital mainly due to reduction in trade receivables Backlog 305 275 305 252 275 › Investments in the fourth quarter mainly related to expansion of electrode manufacturing capacity in Aarhus. Total investment budget of the manufacturing line: NOK 60 million, whereof NOK 47 million is completed as of 31 December 2025 › Electrode manufacturing line is fully operational, with remaining investments related to further improvements 12 Continuing to execute on cost savings program Annualized cost savings (MNOK and %) vs. Q4 2024* Achieved as of 30 June 2025 Achieved as of 30 September 2025 Achieved as of 31 December 2025 › Group-wide cost measures include 24% 20% >50 > 40 12% > 25 downsizing in Europe reduced cost in our China operations reduced use of external consultants › Project execution not impacted › HydrogenPro continues it focus on cost discipline and consider further cost measures in line with market activity 147 89 86 * Not included: all project-related expenses (incl. up-staffing for electrode deliveries in Aarhus, Denmark), non-recurring costs, warranty/other provisions 13 Agenda › Introduction and quarterly highlights › Financials › Commercial update Q&A Consensus on strong growth for the clean hydrogen with estimated 5.5-10.2 Mtpa by 2030 Bloomberg New Energy Finance (BNEF) "Policy carrots and sticks drive 5.5Mt of clean H2 demand by 2030 " 1 Selected quotes, 2025 Estimates for clean hydrogen, 2030 (Mtpa) Shown range corresponds to ~25-35 GW electrolyser capacity 5 7.0 6.0 5.5 Det Norske Veritas (DNV) "Future demand for renewable and low-carbon hydrogen and its derivatives - ammonia, e-methanol, and other e-fuels - as energy carriers will grow from current negligible levels to surpass 6 MtH2/yr by 2030" 2 10.2 International Energy Agency (IEA) "Low-emissions hydrogen production from projects that are today operational or have reached FID is set to reach 4.2 Mtpa by 2030 , a fivefold increase compared with 2024 production." "… Moreover, a new, comprehensive assessment of the prospects of announced projects for this year's Review finds that an additional 6 Mt of low-emissions hydrogen production projects has strong potential to be operational by 2030 if effective policies to create demand and facilitate offtake are implemented ."3 Hydrogen Council | McKinsey & Company "Between 5 to 7 mtpa (15-20%) of the announced 34 mtpa of renewable capacity could come online by 2030, with 55% to 60% from Europe and China" 4 BNEF DNV Hydrogen Council IEA 15 BNEF Hydrogen Market Outlook 2H 2025 DNV Energy Transition Outlook, 2025 Global Hydrogen Review 2025, International Energy Agency Global Hydrogen Compass 2025, Hydrogen Council, McKinsey & Company Assuming 50/50 split on green vs. other types of hydrogen USD 110bn global investment in 2025 into a maturing global project pipeline with improved bankability Tech Permitting barriers 7% 4% Missing infra 2% Elevated costs 7% Missing offtake 16% Policy and market uncertainty 38% Funding challenges 27% Global cumulative committed (FID+) investment in clean hydrogen projects by 2030, USD billion 110 75 45 30 20 10 2020 2021 2022 2023 2024 2025 Market sentiment recalibrated 90% of CEOs believe hydrogen is fairly valued or undervalued, not overhyped Sharper focus on bankability Developers are prioritizing projects with secured offtake, policy support, and financing visibility Risk profiles improving Committed (FID+) projects now represent ~30% of total pipeline, up from ~17% in 2020 Higher certainty for OEMs Overall, higher certainty on project pipeline 50+ projects cancelled in the last 18 months , representing ~4 mtpa of unrealized capacity Cancellations primarily driven by policy and market uncertainty (38%), funding challenges (27%), and missing offtake (16%) USD 110bn of committed investment across 510 projects that have reached FID, are under construction, or operational Investment has grown >50% year-on-year since 2020 , with USD 35bn added in the last year alone Investment accelerating into committed projects… …while unviable projects have been cancelled Now, hydrogen expectations normalizing 1. Hydrogen Counsil, McKinsey & Company, "Global Hydrogen Compass 2025" 16 Levelised cost of green is driven down by optimising project layout - large differences between optimal and worst archetypes Situational type 1 Situational type 2 Windy offshore High electricity prices or volatile grid supply Low renewable capacity factor Distributed offtake High risk premium from financier side (WACC) Complex installation Poor grid infrastructure and connections … Levelised cost of hydrogen $/kg Sunny Southern hemisphere export hub Abundant high-capacity renewables sources Large project size with economies of scale Offtake agreements for 10+ years in place Optimized integration Favorable regulation, eg grid cost exemptions … 1. BNEF Hydrogen Market Outlook 2H 2025 17 Momentum is building up for green hydrogen in key regions pushing down LCOH into competitive territory India Economics: | Regulation: | Offtake: Europe Economics | Regulation: | Offtake: 2030 target of 5 MMT per annum hydrogen production, from + 15GW ely capacity , supported by: More than €90 billion investment in green hydrogen expected by 2030 Financial subsidies available and incentives for production and green H2 R&D and infrastructure Effective incentives has fast-tracked into very competitive LCOH ≤ ₹300 (~3 €/kg) Cumulative € 6bn available from Innovation Fund calls, national budgets and 3 rd Hydrogen Bank auction Hydrogen Mechanism Increasing supply and demand transparency and helping buyers and suppliers connect More than 260 projects have placed supply offers within the Hydrogen Mechanism Prime location LCOH down to 4.3-4.5 €/kg Source: European Hydrogen Observatory, European Commission, Green Hydrogen Organisation India, National Green Hydrogen Mission HydrogenPro has a healthy pipeline to support short-term growth; NOK ~1bn potential for projects in final contract stage 2026-2030 horizon Prospect opportunities Representation across the most viable hydrogen applications Power Refinery Steel Industry Transport Final contract stage Hot leads Priority leads Qualified leads HydrogenPro potential value of prospects in final contract stage: NOK ~1bn with expected FID in 2026 19 Our offering meets the most demanding customer purchase criteria Safety & compliance Safety features and compliance with standards incl. for eligibility for incentives e.g., local content After-sales & support Assurance of uptime, incl. fast fault response, ready access to spare parts, esp. for remote or mission-critical sites Scale & modularity Electrolyzer suitability for scaling e.g., avoiding redundancies when building large projects Technology & innovation R&D for new electrolyzer technology, design and features Optimized cost of manufacturing 3 rd gen electrode technology and optimized stack design Designed for long-term operation Track record on delivering large-scale projects Partnerships with bankable electrolyzer/EPC scope Comply with market standards Limited efforts today, opportunity to grow forward Modular solutions for medium to large-scale projects The "DNA" of the company Relative Importance Purchase criteria CapEx (total plant cost) Capital expenditure to purchase and replace equipment and implications for total system CapEx (BoP, civil, …) Electrolyzer performance - quality Technical quality e.g., efficiency, H2 yield, flexibility, purity Electrolyzer performance - reliability Stack uptime and lifetime, H2 consistency, design for repair Track record & bankability Proven deployments to reduce risk perceived by financiers and technical advisers Guarantees & risk sharing Binding guarantees incl. performance penalties and formalized risk sharing models 20 Source: Bain & Company Agenda › Introduction and quarterly highlights › Financials › Commercial update Q&A 21 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 H2 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 220MW ACES project to start up early 2026; 100MW ANDRITZ (SALCOS) project in delivery Manufacturing capacity in place to service demand today with plans to expand globally Owner of electrolyzer manufacturing site in Tianjin, China and electrode manufacturing in Aarhus, Denmark 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 22 POWERING INNOVATION? ENERGIZING TOMORROW. HydrogenPro Attention : This is an excerpt of the original content. To continue reading it, access the original document here .