thyssenkrupp nucera reports a 12% increase in order intake in Q3 2024

thyssenkrupp nucera, a global leader in electrolysis technologies, reported a 12% increase in order intake, reaching EUR 271.3 million (US $ 73.86 million) compared to EUR 242.4 million in the same quarter of the previous year.

This growth was largely fuelled by the strong demand for alkaline water electrolysis (AWE) technology, which is pivotal in the production of green hydrogen. Orders in this segment soared to EUR 220.1 million, a remarkable increase from EUR 28.3 million in the prior-year quarter.

A major contributor to this growth was the H2 Green Steel project, from which hyssenkrupp nucera booked around EUR 200 million following the customer's full notice to proceed. The company is a key partner in the construction of Europe’s first large-scale green steel plant, a critical development in the continent’s decarbonisation efforts.

Furthermore, thyssenkrupp nucera secured an agreement with Spain’s Cepsa to reserve production capacity for a 300-megawatt electrolyser. This facility, located at the Cepsa energy park in La Rábida, Spain, is expected to produce 47,000 tons of green hydrogen annually in its first phase.

Significant progress was also made in Saudi Arabia, where the construction of a water electrolyser plant in NEOM, with an output exceeding 2 gigawatts, is advancing rapidly. The delivery of standardised 20 MW modules has reached over 800 megawatts, with more than 400 megawatts successfully installed.

Dr Werner Ponikwar, CEO of thyssenkrupp nucera, highlighted the importance of these advancements: "Our 20-megawatt water electrolyser at CF Industries in the USA is already producing the first green hydrogen. This marks a crucial milestone in our decarbonisation efforts at the world’s largest ammonia production site."

Despite these achievements, the company faced headwinds in the third quarter due to ongoing uncertainty in the green hydrogen market. Regulatory issues and delays in funding commitments led to slower final investment decisions by many potential customers.

The chlor-alkali (CA) business, however, continued to perform well, with thyssenkrupp nucera anticipating that projects with chlorine production capacities of more than one million tons per year will reach the final investment decision stage in the next 18 months. The company has been awarded a contract to prepare a basic engineering and design package for one of the world's largest chlor-alkali plants in the United Arab Emirates, with further studies underway in Spain, South America, and the US.

Sales in the third quarter were robust, increasing by 26% year-on-year to EUR 235.7 million, marking the highest quarterly revenue in the company’s history. This growth was driven by ongoing AWE and CA projects, including the NEOM plant and the H2 Green Steel project. Sales in the AWE segment rose by 20% to EUR 132.5 million, while the CA division saw a 34% increase to EUR 103.2 million.

In the first nine months of the financial year, total sales grew by 24% to EUR 612.0 million, with AWE sales up 46% to EUR 349.3 million. Despite the strong sales performance, EBIT fell to EUR 0.7 million in the third quarter due to increased research and development expenditure in the AWE segment and other costs associated with the company's growth strategy.

Looking ahead, thyssenkrupp nucera remains confident in its ability to leverage the high growth potential of the green hydrogen market. The company expects full-year sales to be in the range of EUR 820 million to EUR 900 million, driven by the completion of existing AWE projects. However, it anticipates EBIT to be negative, largely due to the planned expansion in the hydrogen segment and associated costs.

Dr Ponikwar concluded, "We continue to focus on the profitable execution of our orders, intensify our sales efforts in various regions, and strengthen our R&D activities to maintain our competitive edge. Despite the challenges, we are taking decisive actions to secure our profitability and liquidity as we navigate this evolving market landscape."