Danish electrolyser manufacturer Green Hydrogen Systems A/S has announced a combined cost-out and restructuring program affecting approximately 100 salaried employees, alongside plans for capital raising. The company cited a slower-than-expected market adoption of hydrogen and challenges in the development and commercialization of its X-Series electrolyser as key factors prompting these changes.
The cost-out program aims to significantly reduce production costs for the X-Series electrolyser, while the restructuring is designed to cut the company's overall cost base by at least 40-50%. The goal is to achieve profitability even with lower order volumes.
Implementation of these measures is expected to incur one-off costs ranging from DKK 100 million (USD 14.7 million/EUR 13.4 million) to DKK 150 million during 2024 and the first quarter of 2025.
In a bid to strengthen its capital base, Green Hydrogen Systems plans to seek up to DKK 300 million in initial funds before the end of 2024, with a similar or larger capital increase anticipated by summer 2025. The company aims to move towards profitability and self-sufficiency by the end of 2026.
CEO Peter Friis acknowledged the slower pace of growth in the green hydrogen market, stating that substantial changes are necessary to ensure competitiveness and establish a strong foundation for the future. He reaffirmed the company's confidence in the significance of green hydrogen for the energy transition and its products' role in advancing this critical technology.
In light of these developments, the company has revised its revenue guidance for 2024, now expecting between DKK 105 million and DKK 145 million, down from the previous forecast of DKK 125 million to DKK 165 million.
