Good morning, everyone, and welcome to Nel’s Second Quarter 2022 Results Presentation.
My name is Håkon Volldal, and I am the CEO of Nel.
With me today, I have our CFO, Kjell Christian Bjornsen; and Head of Investor Relations, Wilhelm Flinder.
The agenda for today is as follows.
We will briefly recap Nel.
the developments. highlights through on an go commercial the will second with quarter emphasis We
touch some and will off business. and We on we with We’ll impact events then have our a that Q&A a round summary will the session. section, of outlook it the political
potential hydrogen to and And decarbonization decided is produce, to join of global distribute renewables store the the reason Now dedicated is Nel. hydrogen Nel. unlock we Xst delivers company. that from is This of Nel company recap energy. have and mission a green optimal hydrogen. the global to purpose enable through joined attracted this renewable why to a technology July, me what solutions I and to I
are a there combination I emerging in have this. a say they purpose out be meaningful in industry And me. really this, would few to can leader companies as boldness speak that a to as what this is Nel’s think with there
If hydrogen the since company Exchange facts, Oslo Stock you listed XXXX. a pure-play and at on look some Nel
largest world’s the manufacturer. are We electrolyzer
have base of more countries, and than We we have an XX-year legacy. units in a X,XXX installed XX-plus
leading XXX also markets. manufacturer fueling are more hydrogen than a We with units stations XX across delivered of
XXX We we the network to have we manufacturing sales U.S. facilities in And a employees. have now, close Norway, are global and Denmark. and Right offices.
leading come this to to from and companies around Nel in industrial preferred for projects our technology companies, various for partner so industry has Nel sure the transportation Nel and to are they help in to companies We everything a make their growth them position leaders to world, industry. the hydrogen fund realize industries,
X.X which our sufficient in billion to gives We pursue us reserves, NOK have growth strategy. funding cash
Okay.
the Revenues, year-on-year actually year-on-year. backlog quarter in and which record XXX Order is up these NOK at NOK let’s high the that to NOK at corresponding last highlights. but year. million. billion, in was the down the million, up EBITDA billion, second balance Order NOK quarter included of in I NOK July, happened cash is XXX-megawatt year. still And is said, last in year. up million Obviously, XX% the versus -- XX% as the beef, order up intake figures to XXX second million, order minus XXX XX% X.X NOK quarter XX% get was big XX% X.X from quarter last So the XXX a intake it’s not from
alkaline electrolyzer main production fueling events manufacturing opened So professional the an in we Norway, electrolyzers in in quarter, and for April. We in the had India. alkaline modern the purchase world’s the electrolyzer second for several facility, orders Herøya received plant We orders.
secure capacity megawatts decided expanding X million. of the record XX announced items a And XXX with a purchase a order long-lead customer following of closing at to gigawatt. We our from for XXX second approximately also line alkaline stacks value Herøya, production U.S. megawatts second of EUR potentially from a the to we for quarter,
for system we’ve orders second final of value Australia. the with We an alkaline EUR also from we Herøya. technology stations PEM investment system And million. around for Europe at order announced the And X in One announced made received decision a customer in additional purchase we an Denmark. yesterday, an also line have that today, fueling for in undisclosed also for
make capacity now X capacity ahead have will highlights. gigawatt of -- and of we beginning go sure XXXX. Financial installed So as we production
as was our expenses stronger in up. did We we the is are Operating up but organization. the backlog, build based I and coming expect said, up revenue growth order the quarters it on As probably intake still, XX%.
in are putting at costs markets, around new EBITDA We NOK came million. products minus scale-up technology, new And to have and we related XXX ramped up that new consequently, Yes. cost out.
think commented large and If This us. X.X at going are to is I signals are include what in an cash now balance, -- are sign It billion to large of order we significant take The contracts financing revenue getting to see we that. more that forward, on from smaller quarter-to-quarter. growth -- and these XX% and yesterday, contracts. order some up up It year-on-year. negotiate order order order XXXX. NOK to were work backlog NOK include As And in we billion. any to of the to to more contracts close without more There from important close large will all signatures is all-time this longer intake was announced than There’s in than the is are still backlog. and involved. related July, bigger, I we quarter the takes more year-end as the XX% high order time vary process X orders of intake we the
time. see all industries, large bit a end the pipeline continues order real more I think happen. to segments of in the we also you in outlook that come grow takes boost day, the orders a give and back intake that to when we’ll they and the And order at the it section. But and backlog So across
This in be main Norway interesting mid-next the from order to the If actually it’s you delivered This in system ago. was years why million. Well, recap purchase is is initial value actually important? year, XX Glencore back events X delivered because this quarter. to EUR Nel’s some project first commercial a commercial it’s in around Glencore of XXXX. The second was And client client.
never Most lot our a was X installation. system sold XX installation. is bought even don’t the are have also of at commercial competitors look they years. a of they in what years have that you has been field for ever if This So something a more because them Nel have a take a delivered or The that with than familiar ago. system X they is now competition,
from system alkaline Nel. electrolyzer new customer It’s a get a will to have. nice they So
Denmark. Why be renewable But Energy wind the plant, solar we order nice. EUR X and second directly The this electrolyzer. It’s to important? connected ammonia it’s from from dynamic first world’s also million, will electricity the got is was it’s where Skovgaard in green actually
So some ammonia And larger, will reactor an it’s based renewable grow intermittent power. interesting operations are and on there demo plant, partners on can fluctuate but Haldor it a inputs, project, Vestas. test could power Topsoe how this like
Vestas, a setup it’s true So sort of with Topsoe, Nel, Scandinavian Skovgaard. and
Australia. system of be the million. in We you PEM order electrolyzer Australia. X also important in a EUR biggest received forward. as a hubs hydrogen solution, a containerized for be one Australia purchase The the will would And electrolyzer know, probably It’s going
for driven markets, a a press the have Australia. this we on demonstrate capacity million. And second That half up station quarters. of fueling on in to order in X is to Revenues that EUR production European system kilo orders fueling hydrogen quarter, low will be been order from with is and far and client, side, yesterday vehicles the bit sent sort a low to directly roughly by of so previous needed a market. it intake on we in to site that. year The supply for containerized in solution to release stations side picking Nel for the brings XXXX. business. several X important We it’s the more So of X,XXX cell-grade we a day, the expect present for fuel per of see received and the orders this dedicated Demand in in me several fueling purchase now
a nice So backlog. fueling that’s add-on our to
turf. Another Nel’s Norway, important second home quarter the event in was in
in hydrogen financing government in We the is XXX to million distributes projects that agency hydrogen was or for in And XX-megawatt have funding a project, for maritime Hydrogen support sector. its June, Glomfjord awarded NOK which Norway.
to is with behind in a for rollout which to NOK XXX electrolyzer. Norway this the intent steel that You XXX it’s of owns involved main announced for project. project XX-megawatt production. know Hydrogen the Nel so players Celsa have other be of body we Four might also this also NOK support a million. million hubs this letter received reinforcement government And Glomfjord with green Armeringsstal And totaling XX% support hydrogen of in natural Nel Enova,
you to across in involved these different very sort actually, could a coming going the projects Nel mid-scale forward of Norway, projects, for all up be So interesting market years. on electrolyzers. expect we sum if these be And
In in equipment the where did North tax only. could that interesting, provide July, EUR of expect to we ago? of an that not depending that. the power we Well, paid The is a received apparently, months Production order pipeline But we XXX wasn’t actually larger, is It’s FEED mid-XXXX February we conduct. on X happen the in order-size did or and significantly stacks Nel agreement XX-year say even for of alkaline year value product. a study this million, will said importantly, what there. XX until customer offtake double records XX-year and from The of for undisclosed more has following is is balance order plant will XXX% and It’s these I stacks record green getting to stacks. break XXXX. we megawatt purchase end is see in Now next purchase booming, chosen a client agreement, to secured, and projects America. we from a nice
value balance the There calculate orders we of of stack. Nel capacity. educational But stack? the that is and maturity sort you included important our was mean the just systems, most to Then by So mind production based for stack it’s it’s plus on and contract technology chosen do in was confusion for we some around So for megawatt. per installed bear some what this purposes. the price customer of the by complete stack. of this But
to the stack. just equipment, the cylinder. North is see So tube, balance stack you on The order surrounding the what circular That’s is only. which the with you stack, call stack America this side of left-hand
light look compressors, you you If supply, line power we doubles. of balance gas at of have delivery the the system, gas scrubbers also et cleaners, value you have cetera, a and the and include have tanks, system the plant, typically separation
total project. is part the of of So XX% CapEx only XX%, stack a the
order in apples then you and apples. based not So bear it’s always megawatts cannot that on mind, not -- compare and it’s only, sizes
what we at contribution. margins. a course, the are we electrolyzers. means contract will perfectly delivery, project. Champions will have solid League up in that with It’s it that Now of plays produce financial of Herøya important impact. product standard Nel? reference positive set this Nel which standard It stacks, means Well, for positive have will to a It mean It’s an a
vulnerable enable important secured. further raw We baseload margin cost input now most is that through commodity means the have though even passed might not go Herøya to erosion factors, Volumes pricing. prices all we’re up, which on reductions. based material
a blueprint customers the a in driving terms The down of be coming structured, ago, are delivery. projects fill It’s orders was contract way. attracting So and of will project. a still financially, can future of this cost growing of and There actually projects for part significant the one-off, pipeline large you big is of And not legally it’s a more course, and that additional going how years a installation large-scale is larger. plant. right? couple terms in getting X-megawatt A to be our is
Now XX is midsized.
talking about of for megawatts, around world. single gigawatts We’re the even projects hundreds
you So electrolyzers get When most will secure be whereas of customers electrolyzer projects. think to there quarters, constraints, customers need FIDs are would past accelerate. announcements will an happen difficult grow. actually there by The these with to supply during be overcapacity. would concerned It that manufacturers orders it all their about place supply the will faster. oversupply, and industry will be abundance for supply, might think
installed have a capacity. We documented
without So actually it’s teething we where something issues the real announce and all a startup to and produce to build plans to capacity other problems. is have one works factory, thing it initial and
facility. of we first the were Herøya the to So build out blocks
We as we’re partner electrolyzers will credible volumes expand deliver forward. a high going of and it, seen to
pursue? kind factory, what It’s with want difficult high-quality the fill factory you the contracts. we So to to will not of but projects fill
too contracts It’s to much So fits supply the is FID. much we with possible where high a too actually customer see projects can waste that time never happen. offering, technology on a customization, we what will for project rework, that high-quality will we of probability for, counterparties, suitable without what asking pursue lot without we have
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industry, of all not in will when announced them the these see you So happen. all orders
and to risk acceptable need probability need high profile. win You an a you
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on margin we’re we what said, As I not where decent we a from and want want contract deliver, risk exposed a perspective. we to
but contract the time be Line expected million. when first bit in So of X April go what we’re comes kind to a The XX will It big XXXX. estimated taken equipment a we has is bit picky big CapEx of it for contracts. there to live the to announce EUR around is more projects pursue. be to
that the concept it’s the we X. based continue not either course, not be Line to will of expensive So but X cheap, as it’s expansion. same Line have on And production for
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We with There why planned we to REPower The and tonnes on we to inside lead. ambition XX political neighboring the phase side. bringing XX That’s the you deliveries. now in million North tonnes million have and the maybe it. not lead in fast. the capacity tonnes is, America operational reason of want our Union of can one they EU course, in familiar on also the electrolyzer it run also that hydrogen, take gigawatts. with with the event a I XXX it’s also of are European following, to have main some XXXX the of setup not only could things but time there’s do And is until the certain XX Europe in items, to million following. guess need is fairly produce But happened countries, positive connection finally,
What that credit the can with Senate is for kilo hydrogen hydrogen means many a mean? positively tax in you So does regions in applications equal of gray Inflation is getting max That credit green projects. tax many Act The with competitive to $X become through get in produced. will U.S. the the passed and house, per hydrogen hydrogen Reduction this now involves that
to cheapest And have matter who As hydrogen. a that a few the place become ago. would U.S. of fact, the could months produce thought
will So Nel. important production become increasingly also hydrogen for for the U.S. and
planned of projects lot a North a We in of hydrogen and to accelerated see lot for that’s we nice activity. America, So see inbound plans see.
North in you we Summary look if decisions. Europe together. we green large-scale development. and now, America the leading coming on now finally projects will So the pushing upon touched way main for that projects They investment I But outlook. both have capitalize hydrogen hydrogen, at the and towards and are are right industry triggers this. final
financial hydrogen. talk, loan see investments A the understand have to the hand, They you it. that backed markets and not better. support political I understand financial by to is something. And -- when of becoming the it get On direct funding it’s They projects. better not lot one We do the to experienced are the hydrogen backed push how it’s understand more They comes to but real drivers. only better market financing mean only guarantees, incentives. projects package not
balance is electrolyzers for it’s hydrogen equipment and financing We for that projects. So to for equipment see costs raise the other but also things down. for of easier plant coming
available equipment often the Also So natural the down are coming and efficiency and the high, a CapEx fossil the fuels. the also competing of though low. we’re coming prices are in price down. period OpEx you of energy terms And fairly prices all-time energy. gas very where against is high are oil And in not is need total is even
So even important you though shrinking. renewable available difference the are prices relative is Two high, intake power. electricity have other of actually factors,
to possible small. from grid are actually energy. power the plants renewable and even So solar these we’re these you these farms supplier It’s from buy because supply deliver projects project about renewable now electricity the in either energy, include all wind talking not your all renewable or
it in tremendous -- or your If a the you of an might your plant, energy are in to factory able even and you offtake. And sense plans, project supply include a make secure you’re ammonia power to supply building then steel amount energy. need
about need So years XX They’re tell That’s the customer undisclosed. doing. don’t what years. for them XXX% secured to doors They or knocking marketing XX their also we of had people had want don’t the they’re for offtake They why department. on sold product. it’s out a XXX
So do to easy it’s get you can also financing. when that,
Nel final us each is investment unrivaled hydrogen capitalize have an uniquely towards So track And we these the on this. green positioned that? can large-scale on this. decisions. industry things other project Nobody Well, match is reinforce why drive and record. to
We decades have experience. of
been We’re XX We’ve for not company. PowerPoint years. around a
with operational largest the hydrogen. handle have to in how We of installed the experience base terms
from learned the know have and the all We mistakes past. of We don’t why -- why work they designs don’t certain others work. and
concept. We have It’s a not technology. proven just
is guarantee. not performance molecules day a out the by performance. fact a technology hydrogen producing sheet. there, and performance have We We guarantees. every real It’s It’s which can is stand just actually backed behind
have leadership. We technology
in leader PEM, technology. exchange are a proton We membrane
leader And leader technology. a we’re also in course, the are of technology. We in alkaline fueling
system important? of the ownership We or why means which have Well, total hydrogen this is durability XX% efficiency producing OpEx. and optimal of is lifetime, XX% cost to and
you So a for long efficient you a highly need And last need time. electrolyzer, right? it to
If after to not you replace to be going do not X stacks going it’s need -- to years, it. the it’s
that give the can X X, when just of longer equipment that got system customer to for a need You couple comfort will in haven’t last one out than the you And how years. do the you more field years. than
treated cost leadership. understanding safety and terms world-class way. should how we have responsible scale have We hydrogen be in of And a in
target. We a to are reductions. the our per announce cost front-runner We were kilo first in $X.X
want even the X megawatts large big XXX, deliveries Phase with gigawatt a them projects see, project. the of projects help for XXX because We’re installed and expand, so we financing leader more, that can and and we the know have market customers actually capabilities they that in of be capacity, most can might we invest production to we that the and continue if we
megawatts megawatts, know when go that want So whether back if you XXX need can supplier the also next XXX, you to with the for gigawatt. next you or one XXX you supplier
are different mean, -- these I these split So up basically phases. are into
You pilot a Can So study, X the one with start to next might supplier, you FEED we But was understanding the all do That supplier supply can. we you presentation. are previously we XXX-megawatt phase the figure megawatts, be in works, this with to can technology gigawatt actually -- of you XXX XXX, it. And megawatts. what commercial want XX, okay, in rollout XX X, if out, us? investments but how a how that the grow do these at years, that XXX, of is for or blueprint of the now double concludes they make
ask colleagues join a clear, everything for unless will have I me to no questions. my you So Q&A crystal and was
