Danish-Norwegian hydrogen company burns millions on budget overruns and settlements

Growth has slowed down in the Danish-Norwegian hydrogen company Nel, and the third quarter report is marred by major costs for failed projects and an expensive legal case.

Photo: PR/Nel

It has cost Nel dearly to enter a settlement with the company's former US supplier PDC Machines. Or at least, the cost of the settlement with PDC is mentioned as part of the extraordinary costs of NOK 36.5 million (EUR 3.8 million) that drags down the Q3 report. A report that has a pre-tax (EBIT) deficit of NOK 66.3 million.

PDC sued Nel at a US court in December last year. A case in which PDC accused Nel of stealing trade secrets in connection with the development of a new compressor. The conflict concerned a patent on a special type of compressor, which Nel Hydrogen applied for a patent on in May 2016. PDC Machines claimed Nel Hydrogen has used trade secrets for both development of the compressor as well as the patent application for it.

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