Everfuel A/S published its second quarter and first half 2023 financial results.

Key events

• Realignment of strategy to focus on scaling green H₂ production to capture significant value creation opportunities led by recent market developments in Germany and Denmark
• Restructuring of the H₂ station network, technology development and organization due to current immature mobility market and technology
• Reaffirmed focus on heavy duty vehicles for future H₂ station network following final alternative fuels infrastructure regulation (AFIR) agreement and decommissioning of unprofitable legacy stations
• Revenue increase by factor of x4.5 compared to same quarter last year reflecting high activity level on station construction contracts in Germany, with revenue from H₂ refueling being stable over the quarter
• Updated timeline and project scope for HySynergy Phase 1 to ensure safe and efficient start-up expected in Q1 2024 with fully developed operational procedures and organization
• Prioritizing safe and secure operations, grounding H₂ trailer fleet and subsequent shut down of H₂ stations as precautionary measure due to leakage
• Progressing towards final closing of Hy24 JV transaction
• Cash position of €1 MM at end of June 2023 and liquidity budget expected to fund investment and operation plans into 2025.

Everfuel's ambition is to make green H₂ for zero-emission industrial activity and mobility commercially available across Europe. The company is engaging with partners, customers and authorities across the entire value chain, from production to distribution and fueling, when executing its long-term strategy for value creation as a leading European green H₂ company.

Everfuel has made significant progress since listing on Euronext Growth Oslo in 2020. At the same time, immature technology, project complexities, delayed third-party H₂ sources, supply chain constraints and cost inflation have impacted commercial and financial development. Further, the growth of green H₂ market in Europe remains subject to protracted political processes, delayed roll-out of H₂ vehicles at scale, a narrow pool of competent personnel as well as limited access to capital in the current market environment.

Based on recent market and corporate developments, Everfuel has decided to prioritize development of green H₂ production capacity and reduce refueling network investments by high grading the existing portfolio of refueling stations and projects.

"We are very pleased to see increased momentum in Europe in support of green H₂ across multiple dimensions, including the RED-II directive, the AFIR regulation, the European H₂ Backbone initiative and the recent agreement for a H₂ pipeline connecting Denmark and Germany. Together, these form the foundation for unlocking a large European H₂ market for which Everfuel is well positioned,” said Jacob Krogsgaard, the CEO and founder of Everfuel.

“Still, we recognize, that as an early mover within green H₂, we are breaking new ground for a new industry and continuously contribute to constructive maturation of technology together with suppliers and stakeholders, exposing us to delays in political processes, immature technology, supply chain challenges, cost inflation and scarce resources including access to competence. Our ambition of €1-B revenue from green H₂’s sales to industry and mobility remains firm, but it will take longer to get there, and investments will be higher than we initially expected. Our realignment of strategy will reduce cash burn, add financial flexibility and is expected to enable us to finance the current planned investments into 2025 before requiring additional equity, supported by cashflow from HySynergy, the Hy24 JV, public grants and relevant project debt financing.”