Green Hydrogen Systems – Interim Report for H1 2024 | 27.08.24

Company Announcement August 2024

Green Hydrogen Systems – Interim Report for H1 2024

Business highlights

In the first half of 2024, total revenue, including service revenue, amounted to DKK 32.6 million. Total revenue in H1 2023 amounted to DKK 14.0 million.
In H1 2024, six electrolyser units passed the Factory Acceptance Test and were delivered to customer locations in Sweden, Germany, the Netherlands and the United Kingdom. In addition, two electrolyser units passed the Factory Acceptance Test after H1 and are awaiting shipment to customer locations.
Firm order intake for nine Series A units totaled 8.1 MW in the first half of 2024, with delivery scheduled for H2 2024 and in H1 2025. Total order backlog stood at 15.0 MW at the end of June 2024.
The company has identified a total of 550 MW of priority 1 large-scale hydrogen-related production projects in development. However, like the market, the company is experiencing delays in the development of these projects and the adoption of green hydrogen technology.
An optimized production flow and an in-plant test facility for the A-Series will enable faster delivery of existing orders to customers in the second half of 2024.
The A-Series retrofit program and fleet optimization program have been implemented with valuable improvements in performance and technology, purchasing and product developments.
Product development of the X-Series electrolyser has now been completed and has resulted in a technical proof of concept, supported by third-party performance validation and positive results from additional reliability testing at the GreenLab test site in Skive, Denmark.
In the second half of 2024, continued reliability testing is expected to lead to further product improvements of the commercial X-Series electrolyser product.
With the technical proof of concept and positive reliability tests of the X-Series product, the Company is actively pursuing customer contract dialogues based on performance-based pricing structures or full commercial terms. The ability to secure orders for the X-Series is essential to the Company and its long-term financial and operational success. The Company plans to secure its first binding order for the X-Series before the end of 2024, and its medium-term financial targets are linked to achieving this goal.
During the first six months of 2024, parts of the expanded production facilities in Kolding, Denmark, will be reconfigured to enable the assembly of X-Series modules.
In parallel with the ongoing reliability testing and customer dialogues, and given that the X-Series is still in the early stages of commercialization, the company has started work to optimize production costs. This includes a cost analysis to ensure the competitiveness and profitability of the X-Series.
Strategic collaboration agreements have been signed with German EPC service provider Bilfinger and Danish EPC service provider BWSC to support sales and supply to medium-sized hydrogen production facilities based on the X-Series product.
Interim CEO Peter Friis was appointed permanent CEO and Torben Hvid Larsen was appointed Chief Technology Officer.
Medium to long-term market factors and regulatory developments for European hydrogen and electrolysers continue to support expectations of significant demand growth, although the sector is experiencing delays in developing hydrogen projects and deploying green hydrogen technology.

The Company currently projects available capital reserves through 2025. These projections are based on the current business plan, which assumes sales of and associated upfront payments for Series X will occur in H2 2024, see above. If such sales do not occur, the Company may need to take additional actions to extend available capital reserves.

Peter Friis, CEO of Green Hydrogen Systems, says:

“We are pleased to report continued increases in customer deliveries and revenue growth in the first half of 2024, despite a challenging market. Equally important, we have achieved several technical milestones for our X-Series electrolyser and are making steady progress towards securing our first binding customer agreements.”

Guidelines for 2024

Green Hydrogen Systems maintains the 2024 guidelines as announced on February 8, 2024 (Company Announcement 04/2024).

The guidelines for 2024 can be summarized as follows:

Turnover, DKK 125 to 165 million
EBITDA, DKK -260 to -220 million
CAPEX, DKK 160 to 200 million

The revenue outlook reflects the uncertainty regarding the exact timing of electrolysers meeting revenue recognition criteria within calendar year 2024. In addition, exact delivery, site acceptance test (SAT), revenue recognition and EBITDA could be negatively impacted by, for example, supply chain disruptions, rising component and raw material costs, general inflation, delays in product assembly and pandemics.

Conference Call Details

In connection with this announcement, Green Hydrogen Systems will host a conference call. The conference call will take place on August 27, 2024 at 10:00 AM CET.

For the presentation used during the meeting, please visit investor.greenhydrogen.dk.

Link to the webcast

Denmark: +45 89 87 50 45

Norway: +47 815 03 308

Germany: +49 32 221098334

United Kingdom: +44 20 3936 2999

Participant access code: 665257

For further information please contact:

Media: Lene Rode, Head of Communications & External Relations, +45 4085 2619, [email protected]
Investors: Ole Vesterbæk, CFO, +45 2053 0031, [email protected]

Green hydrogen systems in brief

Green Hydrogen Systems is a clean technology company and a leading supplier of standardized, modular electrolysers for the production of green hydrogen from renewable energy. Green hydrogen plays a critical role in the ongoing fundamental shift in energy systems towards net-zero emissions by 2050. Founded in 2007, Green Hydrogen Systems builds on years of technology development and has a commercially proven and cost-competitive electrolysis technology endorsed by leading green energy companies.

Forward-looking statements

This announcement contains forward-looking statements. Words such as “believe,” “expect,” “may,” “will,” “plan,” “strategy,” “outlook,” “foresee,” “estimate,” “project,” “anticipate,” “could,” “intend,” “outlook,” “guidance,” “target” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause material differences from the outlook set forth. In addition, some of these expectations are based on assumptions regarding future events, which may prove to be incorrect.

See also the overview of risk factors in the 2023 annual report, available at greenhydrogen.dk.

Source: Green Hydrogen Systems
Ticker: GREEN
Tag: Company Announcement