Nel to settle $10.5m hydrogen refuelling lawsuit

Nel and its spin-out company Cavendish Hydrogen will pay $7.5m and $3m, respectively, to settle a lawsuit brought by US industrial gas firm Iwatani Corporation of America over hydrogen refuelling equipment.

Filed in February 2024 with the US District Court in the Central District of California, the lawsuit claimed damages against Nel in an “unspecified amount.”

Cavendish, which was spun out from the Norway-based company after the lawsuit was filed, must also contribute to the settlement as part of the agreement.

After the initial filing, Nel strongly , pledging to “vigorously oppose” them. It has, however, called the resolution “amicable and in the best interest of all parties.”

It followed a June 2023 Nel , worth $24m and placed by an “undisclosed energy company,” for 16 hydrogen refuelling stations to be deployed in the state.

Nel and Cavendish have both said the settlement “eliminates further legal costs and mitigates litigation risk in the US,” while only Cavendish added that it is not expected to impact its outlook.

In February, Nel posted a 31%  for last year as losses more than trebled. Despite the losses, its cash balance remained relatively stable, and its order intake grew.

More recently, it secured $7m  for its PEM electrolysers from a French multi-energy refuelling company.

H2 View has reached out to Nel for confirmation on whether the lawsuit involved the June 2023 transaction.