Oslo-listed TECO 2030 files for bankruptcy amid financial troubles

Norwegian hydrogen full cell developer TECO 2030 on Tuesday (10 December) has announced its decision to file for bankruptcy. 

In a stock exchange filing, the decision of the board of directors of the company was unanimous and was due to the fact that “there is no longer a realistic opportunity to raise sufficient capital to continue operations”.

“The bankruptcy petition will be filed this evening,” it said. 

The decision came following the bankruptcy filing of its wholly owned subsidiary, TECO 2030 Innovation Center AS, which was announced on 3 December. 

“The Company is currently evaluating the implications of this bankruptcy filing, particularly concerning its overall prospects and outlook in light of the ongoing bankruptcy petition against it. Notably, Innovation Center holds a net claim of approximately NOK 22 million against the Company,” the company explained in an earlier stock exchange filing.  

“Additionally, the Company has provided a guarantee of NOK 10 million to the former landlord of Innovation Center. As part of the bankruptcy proceedings, the Company will also write off the recorded equity of NOK 30,000 associated with (the) Innovation Center.”

In an open letter to Norway’s Ministry of Trade and Industry on 27 September, the company stated its desire is to establish mass production of hydrogen fuel cells in Norway, but due to unpredictable framework conditions from authorities and a lack of available capital, the company was forced to look abroad.

“Potential investors do not trust that the requirements for emission reductions will be met. For example, zero-emission requirements in the World Heritage fjords were postponed from 2026 to 2032, while biogas (not zero emissions) is being opened up, which in practice means that ships can sail with conventional LNG technology (no technology development),” it said in the letter, which was posted on its website. 

“The state has also long announced zero-emission requirements for ferries from 2023, but no regulations had been forthcoming.”

A day before that, TECO 2030 announced a strategic shift from manufacturing fuel cells in Norway at the time, to positioning itself as a global technology provider.

“This decision reflects TECO 2030’s commitment to growth in dynamic global markets, particularly in the face of regulatory delays in Norway,” it said. 

Despite efforts to secure risk financing in Norway, both from public and private sectors, the interest and capital support for clean-tech projects remain limited. 

“By shifting focus to licensing, TECO 2030 can leverage stronger demand in high-potential international markets, ensuring sustainable growth and reinforcing its leadership in hydrogen fuel cell innovation,” it added.

Photo credit: TECO 2030
Published: 12 December, 2024