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53 min ago 3 min read
Norwegian electrolyser maker HydrogenPro will use Chinese firm Longi’s manufacturing facilities while mothballing its own capacity in China, as it announced a strategic review to find new financing sources.
The move marks a shift towards an asset-light manufacturing model as HydrogenPro looks to cut costs and avoid carrying underutilised production capacity amid slower-than-expected hydrogen project final investment decisions (FID).
The Porsgrunn-headquartered firm said it entered into a joint original equipment manufacturer agreement with the hydrogen subsidiary of Longi, giving it “immediate access” to 1GW of capacity.
Last year, Longi was cleared to invest NOK 70m ($7.62m) in HydrogenPro. Longi previously told H2 View it was open to developing a with the Norwegian firm.
The deal will see HydrogenPro shutter its 500MW Tianjin factory, which it only took full control of in a $650,000 deal.
CFO Martin Holtet said the company was targeting more than NOK 20m ($2.2m) in annual savings through the Longi agreement, downsizing in China, freezing European salaries, management pay reductions, temporary layoffs, and cuts on consultants, travel and offices.
HydrogenPro will continue to use its own “proprietary technology” under the agreement and continue developing and producing electrodes in Denmark. Systems destined for European deployment will also be assembled in Germany by its EPC partner Andritz.
CEO Jarle Dragvik said the agreement would give HydrogenPro access to a more automated production facility with fewer operators required per electrolyser, while the company would install its own quality systems and standard operating procedures at the site.
He added that some operations would remain in separate locked areas accessible only to HydrogenPro-qualified personnel.
The announcement came as HydrogenPro launched a strategic review to assess alternative financing options amid ongoing project delays and pressure on its liquidity position.
As part of the process, the firm has appointed an external financial adviser.
The firm reported revenues of just NOK 16m ($1.7m) in Q1 2025, following similarly light intake the previous quarter. Its order backlog had also reduced by over NOK 20m to NOK 252m ($27.4m), with cash reserves shrinking to NOK 56m ($6.1m) from NOK 102m ($11.1m).
Dravik admitted order intake was slow as projects face extended timelines to reach FID.
Despite the near-term pressure, HydrogenPro said it remained in late-stage negotiations on a cluster of projects worth around NOK 1bn over a rolling 12-month horizon.
The changes come as electrolyser manufacturers tussle to strengthen their foundations. With slow project progress and growing competition from Chinese firms, various Western OEMs have been seeking to cut cash burn and align capacity with market demand.
