HydrogenPro: Integrated Annual and ESG Report 2021


HydrogenPro: Integrated Annual and ESG Report 2021

April 8, 2022. – HydrogenPro released its 2021 Annual and ESG Integrated Report today. The report is attached and available on the company’s website.

The report includes the full 2021 financial statements with explanations prepared under IFRS and the company’s first ESG report.

Highlights in 2021 and into 2022 include:

  • Received one of the world’s largest orders for electrolyser systems

    • April 2022: Firm order received from Mitsubishi for one of the
      world’s largest electrolyser system contracts ever, with an initial
      Contract value of over USD 50 million.

  • Acquisition of a world leading electrode company

    • January 2021: Acquisition of a world-leading electrode technology by ASP in
      Denmark. This is a breakthrough technology advantage that is being scaled back
      Electricity consumption by 14%, which is approximately the investment
      Cost of the entire facility in a total cost of ownership perspective,
      with fluctuations depending on the electricity price. Industrial scale
      Production facility operational from the end of 2021.

  • Strategic move to manufacture complete electrolyser systems

    • Nov 2021: Signed agreement to acquire a leading Chinese high-pressure company
      alkaline technology company, including worldwide IP rights. The
      The capacity of the Chinese unit has been expanded to more than 30
      People with a new board and CEO. The first HydrogenPro electrolysers
      are in production and the capacity will be 300 MW per year.

  • Obtained ISO certification

    • To ensure that products and services meet customer needs through a
      effective management system based on internationally recognized standards.

  • Active sales pipeline of 12 GW by year-end 2021

    • Never seen a stronger market. In addition, several engineering courses
      are underway for large enterprises for large production plants.

Update to the order announced on August 24, 2021:

The world’s largest single stack high pressure alkaline electrolysis system is currently manufactured in China. China’s 2022 Covid-19 infection control measures have resulted in a lockdown that has caused delays. The main part of the gas separator skid has been completed and assembly of the electrolyser is underway with progress awaiting a Covid-19 lockdown at a subcontractor. The production of the system will be completed within four weeks after the reopening of the subcontractor’s facilities. The current delay has no negative contractual implications for HydrogenPro. After completion of the system, it will be transported to Norway for installation and commissioning.

Impact of transition from NGAAP to IFRS:

The effects of the changeover from NGAAP to IFRS on the net assets and financial position as well as the consolidated result are explained in detail in the notes to the consolidated financial statements. The main impact on the profit and loss account for 2021 was an increase in personnel and other operating expenses by NOK 6.3 million and a decrease in depreciation by NOK 1.0 million due to a different treatment of recognition criteria under IAS 38 (intangible Assets under IFRS) vs. NGAAP, resulting in a reversal of previously capitalized costs of NOK 6.3m, increasing staff and other operating expenses in the income statement by NOK 1.3m and NOK 5.0 million increased. The decrease in IFRS depreciation and amortization reflects a reversal of the deferred tax liability related to the technology of subsidiary Advanced Surface Plating ApS. As a result, the initial value at the date of purchase was reduced, affecting the basis for depreciation in 2021. Consequently, the loss before tax under IFRS was NOK 5.2 million higher than under NGAAP, while the net loss at year-end increased by NOK 5.2 million to NOK 5.4 million.
The transition effects on the financial position resulted in a decrease in total assets of NOK 13 million, mainly related to intangible assets and the treatment of leases by right-of-use assets recognized under IFRS 16. Current assets remained unchanged. Long-term liabilities decreased by a total of NOK 9 million, reflected in the release of the deferred tax liability of NOK 10.4 million and the recognition of a long-term lease liability of NOK 1.4 million. A lease liability of NOK 1.6 million was recorded under current liabilities. The total reduction in equity as a result of the IFRS transition was NOK 5.6 million.

For more information, please contact:
Elling Nygaard, CEO, +47 908 44 194, [email protected]
Martin T. Holtet, CFO, +47 92 24 49 02, [email protected]

About HydrogenPro:
HydrogenPro designs and delivers custom hydrogen plants in collaboration with global partners and suppliers, all ISO 9001, ISO 45001 and ISO 14001 certified.

The company was founded in 2013 by people with a background in the electrolysis industry, which was founded in 1927 by Norsk Hydro in Telemark, Norway. We are a seasoned engineering team of leading industry professionals, drawing on unparalleled experience and expertise in the hydrogen and renewable energy industry.

Our core product is the alkaline high-pressure electrolyser. With the new electrode technology we can increase the efficiency of each unit by 14% to 93% of the theoretical maximum. This is a significant step forward, since the cost of electricity accounts for 70-90% of the cost of hydrogen production, depending on the market price, and the value of such an increase in efficiency roughly corresponds to the investment cost of the entire plant in the total operating perspective. The company is targeting green hydrogen production costs of $1.2 per kg by 2022.

This information is subject to disclosure requirements under Section 5-12 of the Norwegian Securities Trading Act.


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