Green Hydrogen Systems - Interim Report for H1 2024
Business Highlights
In the first half of 2024, Green Hydrogen Systems achieved total revenue, including service income, of DKK 32.6 million. This marks a significant rise from DKK 14.0 million during the same period last year. The company reached several important milestones, notably the testing and delivery of six electrolyser units to various customer locations, particularly across Europe.
Electrolyser Units and Order Intake
Throughout H1 2024, the firm order intake for nine A-Series units amounted to 8.1 MW, with deliveries scheduled for the latter half of 2024 extending into H1 2025. By the end of June 2024, the company reported a total order backlog of 15.0 MW. Additionally, they have identified a significant potential of 550 MW in priority hydrogen-related production projects currently in development.
Delays and Market Challenges
Despite these promising projects, the market has encountered various delays in project development and the adoption of green hydrogen technology. To address this, an optimized manufacturing process and factory testing for the A-Series will improve customer deliveries and help fulfill existing orders in H2 2024.
Technological Advancements
The A-Series retrofit and fleet optimization program has successfully implemented notable enhancements in both performance and technology. The development of the X-Series electrolyser has reached a technical proof of concept, backed by third-party validations and positive reliability testing conducted at GreenLab in Skive, Denmark.
Future Prospects for the X-Series
In the latter half of 2024, further reliability testing is anticipated to lead to ongoing product enhancements for the commercial X-Series electrolyser. The company is actively involved in contract negotiations with customers, utilizing performance-related pricing structures. Securing the first binding order for the X-Series is a critical goal aligned with the company’s mid-term financial objectives.
Production Facilities Update
Recent modifications to the production facilities in Kolding, Denmark, have set the stage for X-Series module assembly, demonstrating the company’s commitment to scaling operations. Alongside reliability testing and customer discussions, efforts to optimize production costs are in progress to ensure the X-Series remains competitive and profitable.
Strategic Collaborations and Leadership Changes
Green Hydrogen Systems has formed strategic partnerships with prominent EPC service providers, such as Bilfinger and BWSC, to enhance its sales and delivery capabilities for mid-scale hydrogen production facilities using the X-Series product.
Additionally, there have been leadership changes, with Peter Friis appointed as the permanent CEO and Torben Hvid Larsen taking on the role of Chief Technology Officer.
Market Drivers and Financial Stability
Looking forward, the company expects significant demand for hydrogen and electrolyser technologies, driven by medium to long-term market trends and regulatory changes across Europe. Although current forecasts indicate sufficient capital reserves through 2025, any potential shortfalls in orders may necessitate the company to explore additional measures to bolster its financial stability.
Guidance and Outlook for 2024
Green Hydrogen Systems has reaffirmed its guidance for 2024, projecting revenues between DKK 125 million and DKK 165 million, with an EBITDA range from DKK -260 million to -220 million. A planned capital expenditure of DKK 160 to 200 million reflects ongoing investments in technology and enhancements to production capacity.
This guidance takes into account uncertainties regarding the timing of revenue recognition, which may be affected by external factors such as supply chain disruptions and fluctuations in raw material costs that could adversely impact overall delivery schedules and financial results.
Conference Call and Contact Information
Green Hydrogen Systems will host a conference call to discuss these updates. The call is scheduled for a specific date and time, providing further insights into the company's performance and future plans.
The company invites stakeholders and investors to reach out for more information using the following contact details:
Media: Lene Rode, Head of Communication & External Relations, +45 4085 2619, lro@greenhydrogen.dk
Investors: Ole Vesterbæk, CFO, +45 2053 0031, ove@greenhydrogen.dk
Green Hydrogen Systems Overview
Green Hydrogen Systems is recognized as a leader in clean technology, specializing in the supply of modular electrolysers for producing green hydrogen from renewable energy sources. Established in 2007, the organization has received industry accolades for its commercially viable electrolysis technology.
Frequently Asked Questions
What is the revenue achieved by Green Hydrogen Systems in H1 2024?
The company reported total revenue of DKK 32.6 million in the first half of 2024.
What milestones were reached for the X-Series electrolyser?
The X-Series achieved technical proof of concept and positive results from reliability testing.
What are the projected revenues for Green Hydrogen Systems in 2024?
The company projects revenues between DKK 125 million and DKK 165 million for 2024.
Who are the strategic partners of Green Hydrogen Systems?
The company has signed agreements with German EPC provider Bilfinger and Danish EPC provider BWSC.
What challenges is the company facing regarding project development?
Green Hydrogen Systems is experiencing delays in project development and technology adoption, impacting its operational timelines.
