© thyssenkrupp nucera
© thyssenkrupp nucera

thyssenkrupp nucera’s focus on alkaline electrolysis pays off with record sales

thyssenkrupp nucera has reported a record sales order as it further advances its position in the alkaline water electrolysis sector.

With an increase in sales of 34.6% to €208.3m ($224.4m), the company has achieved its highest ever quarterly sales, mainly driven via a significant 700MW electrolyser order from Swedish customer, H2 Green Steel.

During the reporting period, the order by H2 Green Steel delivered an intake of €100m ($107.7m) alone for thyssenkrupp.

Read more: thyssenkrupp nucera secures capacity of 700MW at H2 Green Steel’s Boden electrolysis plant

The company’s momentum in alkaline has seen an 8.8% increase in order intake, with more than half of its new orders attributed to the AWE sector, totalling €109.1m ($117.5).

However, it has incurred an anticipated dip in Earnings before Interest and Taxes (EBIT) due to a lower gross margin as a result of the AWE sector accounting for a higher proportion of sales.

Dr. Werner Ponikwar, CEO of thyssenkrupp nucera, emphasised the company’s strategic direction and its expanding influence in the AWE market.

“We are on the right track and are further expanding our position as a global player in the market for alkaline water electrolysis,” said the CEO.

The company’s business in water electrolysers grew the most during the quarter setting a new record for the company. At €120.6m ($129.9m), sales in the AWE segment increased by 73.3% (€69.9m ($75m)).

This focus has resulted in thyssenkrupp’s EBIT to fall to €-0.9n, despite being €11m ($11.8m) in the same quarter the previous year. This meant a weakened EBIT margin from 7.1% to 0.4%.

thyssenkrupp nucera’ Chief Financial Officer (CFO), Dr. Arno Pfannschmidt, understood this reduction. “In order to implement our growth strategy swiftly and take advantage of market opportunities, we expect start-up costs to continue to rise in the coming quarters,” explained Dr. Pfannschmidt.

The Global Alkaline Water Electrolysis Market: Growth, Future Prospects, and Competitive Analysis, 2016-2028 report forecasted the alkaline market to reach around $150.5m in 2028. The market generated a revenue of around $105.5m in 2021, according to Credence Research.

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