Cavendish Hydrogen, the Norwegian electrolyser manufacturer Nel's spun-off hydrogen refuelling station supplier, is laying off nearly half of its global workforce and pausing the development of its high-capacity hydrogen refuelling station.

The company, whose stock price has plummeted by around 82% since June 2023, faces a challenging market environment. To navigate this, Cavendish CEO Robert Borin emphasized the need to "reduce our cost base significantly and adapt to the current market situation." This decision, while difficult, is aimed at preserving cash and ensuring the company's survival until market demand for hydrogen refuelling infrastructure picks up.

The job cuts will impact approximately 109 employees, a substantial portion of Cavendish's 242-strong workforce. Borin acknowledged the difficult nature of this decision, stating, "It is sad to say goodbye to so many competent employees and colleagues."

Furthermore, the company has decided to temporarily halt the development of its next-generation high-capacity hydrogen refuelling station. This ambitious project, which involved a dedicated test site in Herning, Denmark, will be resumed only when a suitable customer or industrial partner is secured.

Despite these challenging measures, Cavendish remains financially sound, according to Chief Financial Officer Marcus Halland. He stated that the company is "well-financed" and that these actions will "preserve cash and extend [Cavendish’s] runway."

Cavendish Hydrogen continues to focus on fulfilling existing customer orders. The company currently boasts an order backlog of €21 million, although this figure represents a 42% decline from the previous quarter.

The company is also actively seeking new opportunities. A recent partnership with Swiss company Hoerbiger aims to develop a compact, high-performance compressor for hydrogen refuelling stations, demonstrating Cavendish's commitment to technological innovation and future growth.

While the current market conditions are challenging, Cavendish Hydrogen remains optimistic about the long-term prospects for the hydrogen industry. The company believes that the Alternative Fuels Infrastructure Regulation (AFIR) will continue to drive demand for hydrogen refuelling infrastructure, particularly for heavy-duty vehicles.

By implementing these cost-cutting measures and focusing on fulfilling existing orders, Cavendish Hydrogen aims to weather the current storm and emerge as a strong player in the growing hydrogen economy.

Cavendish Hydrogen is a company focused on advancing hydrogen technology to support the transition to a cleaner, more sustainable energy future. Specializing in the development and commercialization of hydrogen production, storage, and distribution solutions, the company aims to tackle key challenges associated with hydrogen adoption, such as cost efficiency and scalability. Cavendish Hydrogen leverages cutting-edge research and engineering to deliver innovative solutions that cater to a wide range of industries, including transportation, energy, and manufacturing.