Nel ASA: A Strategic Player in the Dual Pillars of Hydrogen Technology

Shares of Nel ASA (NEL.OL) traded largely flat on Thursday, December 5, 2025, closing at €0.201 on the Tradegate exchange. The marginal gain of 0.50% belied significant market research published the same day, which underscores the company's entrenched position within two critical and expanding segments of the hydrogen value chain.

Fresh analysis of the worldwide hydrogen sector reveals a market in transition. According to Allied Market Research, the global hydrogen market is projected to reach a valuation of $262.0 billion by 2031, expanding at a compound annual growth rate of 6.8%. Currently, approximately 95% of production is derived from fossil fuels via steam reforming. However, a structural shift is underway, driven by EU strategies and large-scale projects, toward green hydrogen produced through electrolysis. This movement directly aligns with Nel ASA's core electrolyzer business, positioning the company at the heart of the industry's sustainable evolution.

Market Report Confirms Key Role in Purification Technology

Parallel to the broader market data, a detailed sector report published on December 5 by Coherent Market Insights solidifies Nel's standing in another essential area. The research on Hydrogen PSA (Pressure Swing Adsorption) Purification Technology explicitly names Nel ASA as a key industry player alongside established giants like Linde and Air Liquide.

This technology is vital for producing high-purity hydrogen required in sensitive industrial processes. The report identifies four primary demand drivers for PSA purification:
* Industrial gas production
* Chemical processing
* Oil refining
* Electronics manufacturing

Should investors sell immediately? Or is it worth buying Nel ASA?

This classification demonstrates that Nel's technological portfolio extends beyond electrolysis, encompassing the crucial and value-adding purification stage of hydrogen production.

Investor Sentiment Remains in a Holding Pattern

Despite this dual validation as a technology provider in both electrolysis and high-purity purification—two pillars of the future hydrogen economy—Nel's share price continues to trade at a low level. The stock's minimal movement on Thursday reflects persistent investor caution.

While the structural demand for green hydrogen and associated purification technology is well-documented, the critical question for the equity's trajectory remains whether Nel can successfully translate this market position into sustained revenue and profitability. The current investor stance appears to be one of watchful waiting for this translation to become evident in the company's financial results.