Danish electrolyser maker Green Hydrogen Systems A/S has appointed Rene Umlauft as its new chief executive, effective November 1, replacing Peter Friis, who is stepping down after one year in the role. This announcement follows the company's recent launch of a cost-cutting and restructuring programme.
Chairman Thomas Broe-Andersen emphasized Umlauft's qualifications, stating, “We have agreed to let another profile execute the important coming tasks we will be initiating in this turnaround of the company. We see Rene Umlauft as the right profile to take over as CEO with competencies from complex industries within the green transition as well as significant business transformation and restructuring experience.”
Umlauft has an extensive background in leadership positions, including roles as managing director and chief strategy officer at Rittal, and CEO of MAN Diesel and Siemens Renewable Energy.
The company plans to focus exclusively on commercializing its X-Series hydrogen production system while discontinuing new sales of the A-Series. In the third quarter of 2024, Green Hydrogen Systems reported revenue of DKK 33.7 million (USD 4.7 million/EUR 4.5 million) but has adjusted its full-year revenue guidance to DKK 105 million to 145 million, citing delays in achieving commercial traction and risks of cancellations linked to its restructuring efforts.
The guidance for 2024 earnings before interest, tax, depreciation, and amortization (EBITDA) remains at a negative DKK 260 million to 220 million, excluding restructuring costs. The company has indicated that it is currently breaching its lender covenants and will exhaust its capital by early 2025 without additional funding. To address this, Green Hydrogen Systems is seeking to strengthen its capital base with up to DKK 300 million by the end of the year.
In light of these financial challenges, the company has scheduled an extraordinary general meeting on November 14 to seek shareholder approval for a share issuance.
Umlauft expressed optimism about his new role, stating, “I look forward to taking on the position of CEO in Green Hydrogen Systems and get the opportunity to contribute in navigating through the current challenges with my experience and know-how as CEO from a number of global companies. With the latest strategic decisions from the Board of Directors, I am convinced the company will have a strong future within this important industry.”
The company also announced the appointment of Michael Kaalund as chief financial officer.
