Norwegian electrolyser maker HydrogenPro has partnered with Germany-based industrial plant construction and engineering firm the J Heinr Kramer Group (JHK) to develop green hydrogen plants across Germany, Austria and the Benelux countries.

Kallanish understands that the partners are eyeing green hydrogen projects in the range of 5 to 50 megawatts (MW). While HydrogenPro will supply its high-pressured alkaline electrolyser technology, JHK will be the plant integrator and EPC (engineering, procurement, and construction) contractor.

The announcement comes as several developers have scaled back hydrogen investments in Europe in recent months due to high costs and market uncertainty. 

“HydrogenPro is primarily addressing the large-scale hydrogen projects, but we recognise that parts of the market are entering the energy transition in initial smaller scale scopes,” comments HydrogenPro ceo Jarle Dragvik.

Early this year, the Norwegian firm put a proposed 500-MW electrolyser factory in Texas, US, on hold citing a lack of clarity in the country’s hydrogen production tax credits. 

“JHK brings the necessary know-how to use our advanced technology in smaller green hydrogen projects in the European market,” the executive adds, calling the partnership a “win-win” for both companies and customers.

For large-scale projects, the company is working with Andritz, an international technology group which acquired a 13.8% stake in HydrogenPro in April this year.

This week, HydrogenPro also released its third quarter (Q3) 2024 results, reporting revenues of NOK 72 million ($6.5m), down from NOK 220m in the same period last year.

In the report, the company warned that the European Hydrogen Bank’s new regulations restricting imports of Chinese electrolysers have led to “uncertainties” that will increase project costs, further “impeding” European project developments.

Although HydrogenPro’s sales pipeline has not been largely impacted, the company said the pace of developments is “somewhat slower than initially anticipated.”

“While we await final investment decisions (FIDs) on announced projects, global OEM suppliers continue to face overcapacity,” the report adds. “Therefore, maintaining disciplined and flexible ramp-up capabilities, rather than preemptively scaling operations, will be critical.”