Norway’s Maritime Hydrogen Fuel Cell Pioneer Teco 2030 Faces Bankruptcy
In a still-evolving financial situation, hydrogen fuel cell pioneer Teco 2030 Is facing a financial collapse after a bankruptcy petition was filed yesterday against the parent company. Earlier it had been reported that its manufacturing subsidiary was facing a bankruptcy petition and demands from the Norwegian Tax Authority after another of the company’s subsidiaries filed for bankruptcy two weeks ago.
Teco 2030 was launched as a clean energy company for the maritime sector working to develop zero-emission hydrogen fuel cells that could be used both by shipping and heavy industry. The business was started in 2019 by Teco Maritime Group and spun off into a standalone company. The focus is on PEM hydrogen fuel cell stacks and modules and the company is involved with several innovative ship designs.
Typical of a startup operation in an emerging technology Teco 2030 has no revenues and negative annual income. It had won several grants and was receiving support from investors but according to media reports was constantly facing financial challenges and cash shortfalls. The company cited challenges in the financial markets, challenges in Norway, and discussed the possibility of relocating its operations.
One of the management companies also known as Teco 2030 AS filed for bankruptcy on October 29 with media stating it has more than $18.4 million in debts, including monies due to the Norwegian Tax Agency for employment taxes and duties. Reports said the company has 14 employees with management of the parent company insisting that the filing was limited and would not impact the parent company. They reported that efforts were underway to save the rest of the company.
The situation grew more dire yesterday when another subsidiary, Teco 2030 Innovation Center in Narvik reported that it too was facing bankruptcy. This division is the manufacturing center for the company reporting it has 10 employees. Speaking with the Norwegian media outlet Fremover the factory manager said this development did not come as a surprise as they had been preparing for it.
“The potential bankruptcy of the Innovation Center could have significant repercussions for the company, particularly due to a parent company guarantee it has provided, which is capped at NOK 10 million (US$900,000), covering rental payments under the Innovation Center's property lease agreement in Narvik. A claim has already been made against the company by the beneficiary of this guarantee, prompting the company to engage in discussions to address the situation,” the parent company Teco 2030 ASA reported in a stock exchange filing. Negotiations were reported to be underway with the landlord.
Last night the parent company received a bankruptcy petition following its failure to pay the guarantee. Trading was suspended for a time on Friday in the stock before it opened and the price tumbled more than 30 percent. Reports indicate the company’s stock has lost more than 90 percent of its value in 2024.
“The board of directors will convene to evaluate the circumstances to decide on the best course of action,” Teco 2030 ASA reported in its stock exchange filing. The company has declined additional comments at this time reporting that “touch negotiations” were underway and that it remains a “sensitive time.”
Teco 2030 ASA is the parent of a total of seven companies including the hydrogen development and one company working on carbon capture. In addition to the offices in Norway, it has companies in Miami, Florida, and Singapore. The company is at the forefront of the development of innovative hydrogen solutions for the maritime sector.