Green Hydrogen Systems changes CEO, seeks capital

Danish electrolyser maker Green Hydrogen Systems A/S (CPH:GREENH), which earlier this month launched a cost-out and restructuring programme, on Wednesday announced the appointment of a new chief executive as it updated on the third quarter of 2024.

Rene Umlauft will take over as chief executive on November 1, replacing Peter Friis, who will step down after a year in the post.

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“We have agreed to let another profile execute the important coming tasks we will be initiating in this turnaround of the company. We see Rene Umlauft as the right profile to take over as CEO with competencies from complex industries within the green transition as well as significant business transformation and restructuring experience,” said Thomas Broe-Andersen, chairman of Green Hydrogen Systems’ board of directors.

Rene Umlauft’s career includes roles as managing director and CSO in Rittal, and CEO in MAN Diesel and Siemens Renewable Energy.

Green Hydrogen Systems plans to focus solely on commercialising the X-Series hydrogen production system and discontinue new A-Series sales. In the third quarter, it recorded revenue of DKK 33.7 million (USD 4.7m/EUR 4.5m).

The full-year revenue guidance was adjusted earlier in October to DKK 105 million-145 million, reflecting the delay of commercial traction and the risk of cancellations related to the combined cost-out and restructuring programme.

The guidance for 2024 earnings before interest, tax, depreciation and amortisation (EBITDA) of negative DKK 260 million-220 million is upheld excluding restructuring costs.

Green Hydrogen Systems said it is currently breaching its lender covenants and will run out of capital by early 2025 without additional funding. As previously announced, it is seeking to bolster its capital base with up to DKK 300 million by the end of 2024. Today’s announcement reiterated that the company is in constructive dialogues with the largest shareholders and lenders to find a solution to the funding requirements.

Green Hydrogen Systems has called an extraordinary general meeting on November 14 to seek approval to issue shares.

Newly appointed CEO Rene Umlauft said: “I look forward to take on the position of CEO in Green Hydrogen Systems and get the opportunity to contribute in navigating through the current challenges with my experience and knowhow as CEO from a number of global companies. With the latest strategic decisions from the Board of Directors, I am convinced the company will have a strong future within this important industry [...].”

Green Hydrogen Systems also recently appointed Michael Kaalund as chief financial officer.

(DKK 1 = USD 0.144/EUR 0.134)