Green Hydrogen Systems Teeters on the Edge of Insolvency
Copenhagen, Tuesday, 11 March 2025.
Green Hydrogen Systems’ financial woes emphasise the immense funding pressures on hydrogen tech firms. The company’s restructuring filings highlight the struggle to sustain operations without crucial capital, shaking investor confidence.
Breaking Point
On Sunday, March 9, 2025, Green Hydrogen Systems announced its intention to file for in-court restructuring, marking a critical turning point for the Danish electrolyser manufacturer [1]. The company’s shares plummeted by 79.6% to DKK 0.52 in Monday’s trading, reflecting severe market concerns about its future [7].
Financial Struggles
The company’s financial deterioration became evident last October when it implemented a drastic restructuring plan aimed at reducing costs by 50% [1]. Despite these efforts, the company warned it could deplete its cash reserves by the first half of 2025, with restructuring costs estimated at DKK 230m ($33.5m) [1]. A planned rights issue of DKK 300m ($43.7m) failed to materialize, pushing the company toward insolvency [1].
Market Impact
The collapse of Green Hydrogen Systems represents a significant setback for the Nordic green energy sector, following the collapse of Northvolt AB in 2024 and Better Energy’s bankruptcy for two units [8]. This trend highlights broader challenges in the renewable energy sector, particularly as Larry Fink, CEO of BlackRock, notes that ‘the current cost of decarbonising technologies is still high, and therefore highly inflationary’ [4].
Next Steps
The District Court of Kolding, Denmark, has appointed Attorney-at-law Henrik Sjørslev from DLA Piper as restructuring administrator [6]. A crucial creditors’ meeting is scheduled for April 1, 2025, where the company’s fate will be discussed [6]. The restructuring process will evaluate whether operations can continue or if asset sales are necessary [1][6].
Industry Implications
The company’s struggles mark a sobering moment for the hydrogen technology sector. While Green Hydrogen Systems had positioned itself as a pioneer with its new generation X-Series alkaline electrolyser, ongoing ‘teething issues’ with its A-Series system contributed to its downfall [1]. This development raises serious questions about the immediate future of hydrogen technology firms and their ability to secure sustainable funding [8].