Thyssenkrupp Nucera, a subsidiary of the German industrial giant Thyssenkrupp specializing in electrolysis, is experiencing a slowdown in its green hydrogen business.
The reluctance of customers to invest in green hydrogen projects stems largely from unclear regulatory conditions and unresolved claims. As a result, the company has withdrawn its sales and profit forecasts for the hydrogen business for the next financial year 2024/25.
On the stock market, Thyssenkrupp Nucera’s shares took a significant hit, dropping by over six percent to a record low. This decline led Metzler Bank to remove its buy recommendation for Nucera. Analyst Guido Hoymann expressed disappointment, noting that the company’s niche in industrial decarbonization is facing setbacks. Consequently, Thyssenkrupp’s shares also experienced a slight decrease.
Thyssenkrupp Nucera had previously projected sales between €700 million and €800 million for 2024/25 in its alkaline water electrolysis (AWE) business. However, these projections were revised downwards in mid-May due to slower-than-expected growth. The company had already highlighted a gap between planned projects and final investment decisions in Europe and North America, calling for the removal of “obstacles to investment.”
For the current financial year, Thyssenkrupp Nucera has maintained its forecasts, expecting a turnover of €820 million to €900 million and an operating loss of several tens of millions of euros. The hydrogen business alone is projected to achieve a turnover of €500 million to €550 million.
Thyssenkrupp Nucera’s challenges are not unique within the hydrogen sector. Regulatory uncertainties and slow investment decisions are common hurdles faced by many companies in the industry. However, firms such as Plug Power and Nel ASA have managed to navigate these challenges more effectively, securing significant investments and demonstrating steady growth.
The withdrawal of sales and profit forecasts by Thyssenkrupp Nucera signals a need for clearer regulatory frameworks and faster decision-making processes to boost investor confidence in the green hydrogen market. The company’s experience underscores the importance of regulatory stability and clarity in driving the adoption of green hydrogen technologies.
