Struggling Danish hydrogen electrolyser maker secures $11.2m short-term loan to stay afloat until end of March
Danish electrolyser maker Green Hydrogen Systems (GHS) has secured a DKr80m ($11.2m) short-term loan from two of its largest shareholders, which will “allow the company more time to realise its commercial prospects and secure the first order(s) for the HyProvide X-series [of its new 6MW high-pressure alkaline electrolysers]”.
The company had told the market at the beginning of November that it was on track to deplete its remaining reserves in the first half of 2025 unless it could raise more finance — and that it was already in breach of covenant with its lenders, making it harder to obtain new loans from financial institutions.
In a new market statement, GHS said that shareholders AP Moller Holding (the parent company of shipping giant Maersk) and Danish state pension company, Arbejdsmarkedets Tillægspension (ATP), had “agreed to provide a short-term subordinated fixed loan facility of DKr80m expiring on June 30, 2025”.
This loan will “secure Green Hydrogen Systems’ funding to continue its operations to at least the end of March 2025”.
The statement added that “while no new firm orders have yet been committed, the Company is in close dialogues and contract discussions with a number of customers regarding HyProvide X-Series orders to be contracted in the beginning of 2025 with delivery during late 2025 and early 2026”.
“With the expectation that the Company will obtain the first order(s) for the HyProvide X-series during the beginning of 2025, Green Hydrogen Systems intends to initiate a rights issue of at least DKr300m with pre-emptive subscription rights for the Company’s existing shareholders to subscribe for the new shares during March to April 2025. “AP Moller Holding and ATP have, subject to the Company having achieved commercial traction with the X-Series, indicated their non-binding interest to participate in the rights issue.”
However, it also added: “There can be no assurance that the rights issue will commence or be completed.”
In the meantime, GHS is continuing to cut costs and will provide an update on cost savings in March 2025.
Source: HydrogenInsight