Green hydrogen's promise falters as funding lags behind bold ambitions
Global energy transition investments hit a record high in 2025, yet clean hydrogen projects received only a small fraction of the funding. While $2.3 trillion was poured into renewable energy, just $7.3 billion went to hydrogen initiatives. This gap has left investors cautious about the sector's growth potential, despite ambitious long-term plans like the Hamburg Declaration.
In mid-2025, nine North Sea coastal states—including Norway—signed the Hamburg Declaration. The agreement sets a target of 100 gigawatts of cross-border offshore wind capacity by 2050, aimed at producing green hydrogen on an industrial scale. The declaration also seeks to strengthen regional energy infrastructure, offering a boost to hydrogen technology providers.
One such company, Nel ASA, has faced a turbulent year. Its stock price has steadily declined, dropping from over 5.00 NOK in mid-2024 to around 2.28 NOK by January 2026. The fall follows weaker financial results, with contract revenues falling 17% in the third quarter of 2025 compared to the previous year. The broader hydrogen market has struggled with high costs and sluggish demand. Green hydrogen production costs have risen, dampening investor confidence. Analysts now rate Nel ASA's stock as a 'Sell,' citing persistent uncertainty and slower-than-expected infrastructure growth. Despite these challenges, Nel ASA secured a strategic partnership in March 2025. Samsung E&A Co., Ltd. became its largest shareholder, acquiring a 9.09% stake through a 353 million NOK capital increase. The deal strengthened Nel's financial position and opened doors for joint hydrogen plant projects.
The Hamburg Declaration provides a long-term vision for green hydrogen, but short-term hurdles remain. Funding for hydrogen projects still lags behind broader energy investments, creating a cautious market mood. For companies like Nel ASA, the road ahead depends on balancing strategic partnerships with the realities of a slow-moving sector.
