Insider Brief
- Green Hydrogen Systems files for in-court restructuring after failing to secure financing.
- The Danish electrolyzer manufacturer cites slower-than-expected market adoption, delays in product commercialization, and overall adverse green hydrogen market conditions as key reasons for financial distress.
- Despite efforts to stabilize operations, including securing an emergency loan in December 2024 and attempting to raise an additional DKK 300 million, the company could not meet near-term obligations.
Green Hydrogen Systems A/S, a Denmark-based manufacturer of electrolysis technology, is filing for in-court restructuring after failing to secure necessary financing, the company announced Monday.
The restructuring process aims to explore options for continuing operations, including a potential sale of all or parts of its assets, the company noted in its announcement. The company indicated deteriorating market conditions had significantly impacted its financial situation.
“Green Hydrogen System has been executing on the restructuring plan since the fall of 2024 to secure the company’s future, and while this has been progressing satisfactorily, it has not been possible to raise the necessary capital.” said Chairman Thomas Broe-Andersen, adding the company has a “unique” product that has potential to play a role in the green hydrogen industry in the future. “We continue to believe that this potential could have been realized had the financing been secured. Therefore, it is regrettable that the company has not been able to raise sufficient funding.”
Green Hydrogen Systems, which specializes in electrolyzers used to produce hydrogen from water using electrical current, has faced multiple setbacks over the past year. Market demand for its technology has lagged behind expectations, while its X-Series electrolyzer product has been slower to develop and commercialize than anticipated. These challenges, coupled with unfavorable market conditions for green hydrogen projects, ultimately led to the company’s financial distress, the company pointed out.
In an effort to stabilize operations, Green Hydrogen Systems completed a capital reduction and secured an emergency loan of DKK 80 million (approximately $11.6 million) in December 2024. The company had planned to raise an additional DKK 300 million ($43.6 million) through a rights issue but was unable to secure underwriting or alternative funding sources. As a result, the board determined that the company could not meet its short-term financial obligations and had no choice but to file for restructuring.
The restructuring process will provide an opportunity for Green Hydrogen Systems to assess potential asset sales and evaluate whether a viable path forward exists for its operations.
The company has stated that further updates will be provided as the restructuring process progresses. Meanwhile, Broe-Andersen expressed appreciation for the employees and management team who have worked to keep the company afloat.
