Dear audience, welcome to HydrogenPro's third quarter presentation. My name is Elling Nygaard, and I'm the new CEO in HydrogenPro, and I will work through this presentation together with my good colleague and CFO, Martin Holtet. I'm quite new in HydrogenPro. In fact, I only started first of November. I came from ABB, where I have worked in the global renewable energy market for years. I got to know HydrogenPro as they and ABB signed a partnership agreement for almost two years ago. After that, we have worked together shoulder to shoulder in the hydrogen market with our complementary technology and offerings. I think I know the global hydrogen market quite well. I have met most of HydrogenPro's business partners and customers through my work in ABB.
In fact, I have met most of the people in HydrogenPro as well through our close cooperation during these years. This have given me a very good start in HydrogenPro. I must say, three weeks into this job, it's even more exciting about all the opportunities that lie ahead. This is the agenda for today. Let's look at the business highlight for the quarter. We have made a acquisition just now, and we have acquired 75% of the fabrication company THM. This includes all the IP rights for the core technology. We are increasing our production to 300 MW per year. This is a large milestone for HydrogenPro. The first step in our global manufacturing ramp-up strategy.
We have had significant increase in active sales pipeline, growing almost every week from 6.9 GW last quarter to 8.2 GW this quarter. The organization is growing rapidly. In addition to partnering with strong partners, the Norwegian organization have almost doubled during this year, and we have got 34 new employees in China. A CCO is onboarded in addition to me, and we strengthen the board with three new members. HydrogenPro is going through an ISO certification for the time being, ISO 9001, 14001, and 45001, and we expect to finalize this within the next two weeks. The market for clean hydrogen is huge. Shifting from fossil hydrogen to clean hydrogen production, where green hydrogen is the main contributor.
The target is 850 GW production within 2030, which means 100 GW has to be built every years in this decade. 3,600 GW within 2050 means almost 140 GW have to be built of green hydrogen in between 2030 and 2050. HydrogenPro will take a strong leading position in this rapidly growing market. There are three major factors driving the hydrogen market today. It's CO2 taxes, which increase steeply every year, and CO2 quotas, which decrease every year, and project funding, public and private fundings. Many projects is now close to final investment decision. Why is HydrogenPro well-positioned in this market? We own the IP right for our core technology, the electrolyzer cell stack itself. We are strengthening our global strategic partnership.
We are establishing our first 300 MW factory and the first step in our global ramp-up strategy. We are building large-scale hydrogen production plants that are standardized and easily scalable and well-suited for renewable energy production like solar and wind. Over life cycle partnering from early phase engineering until end of life support. A major milestone is reached. This is our factory in Tianjin in China. Here we own 75% of the new company, and we own the IP rights for their core technology. We increase the production to 300 MW second quarter next year. We have taken over 34 people in this organization from THM. Energy cost is by far the largest costs. Our advanced electrode technology gives 93% electrolyzer efficiency, which is very strong and gives significant reduced energy consumption and costs during hydrogen production.
After more than 10 years research of advanced surface plating technology, we are now proud to announce the new generation electrode production factory in Denmark. Now is almost ready. The factory is ready to start receiving large order as of 2022. The high-pressure alkaline technology gives us a number of advantages. Compact plant sites gives efficient footprint, CAPEX efficiency due to the design, OPEX efficiency due to reduced energy costs and operating window that is well-suited for renewable energy sources, and no use of noble metals or PFAS. Sales and business highlights. We currently have 66 active projects in sales pipeline. This is 11 more than last quarter. The plant size is increasing significantly. The average plant size is now 124 MW. We are getting closer to final investment decisions, and we are contract negotia, are in contract negotiation in some of the projects, and we expect to finalize this end of this year or early next year.
We continue our global fabrication upscaling strategy. The first 300 MW production lines are in operation early second quarter next year. We are preparing three main hubs as shown in Europe, U.S., and Asia. Partnership negotiations with large global companies are ongoing, and we are preparing to exceed 1 GW production capacity through these partnerships. Now I will hand over to my colleague, Martin Holtet, for the financial part.
Thank you, Elling. Before I will go through the financials during the quarter, I will give you a quick overview of the DG Fuels project. On 29th of October , HydrogenPro announced that we have provided a convertible note of $3 million. We are joined by Black & Veatch and Energy Vault. The purpose then is to finance basic engineering, which now will be carried out during the next few months. DG Fuels has upsized the Louisiana project significantly. Previously, we announced that the electrolyzer capacity would be 120 MW. It has now been increased to 839 MW, with HydrogenPro being the exclusive provider of electrolyzers for the project.
The project will produce synthetic fuels for the transportation sector, and they have now received firm commitments and also non-binding letters for a material portion of the expected production. DG Fuels plans to develop several facilities in other places in North America and also Europe. Now after the basic engineering is completed, the funding process of the construction plant can start. DG Fuels has already been invited to the second round of the application process to secure a loan guarantee from the Department of Energy. Let me walk you through the Q3 financials. In the quarter, the adjusted EBITDA, meaning excluding non-cash operating expenses, was negative NOK 4.9 million.
The reported EBITDA ended at NOK -10.6 million, and the net loss was NOK 11.4 million. In the third quarter, we achieved revenues of NOK 8.2 million. The revenues are recognized in accordance with the percentage of completion principle, and the revenues then are related to the delivery now to Mitsubishi for the world's largest electrolyzer stack. During the quarter, we invested NOK 8.1 million. That is mainly related to completion of the fabrication facility in Denmark for the next generation electrodes. Our test and technology center at Herøya, close to our headquarters in Norway. Also production capacity related to the acquisition we now made in the manufacturing facility in China. Looking at the changes in the cash balance during the quarter.
We started the quarter with NOK 471.2 million. If you then include the adjusted EBITDA of NOK - 4.9, investments of NOK 8.1, the key remaining is then the changes in the net working capital, ended at NOK - 14.8 million, which is primarily related to an increase then in accounts receivables related to the Mitsubishi project, the order. It's great to see a lot of interest in our company from you shareholders and all the stakeholders.
We had close to 2,700 shareholders at the end of the quarter, and we encourage all of you to follow us on our social media channels like LinkedIn and Twitter to give you some additional flavor on what's going on in the company and some more insights into our projects. We encourage you all to follow us there. We have a well-capitalized balance sheet. We ended the quarter with a cash position of NOK 443.4 million. We have no interest-bearing debt and a book equity ratio of 97.2% at the end of the quarter. I just want to reiterate our growth plan.
In essence, we want to grow this company through a partnership strategy for us to take a leading position and to be able to scale up fast and gain a global position and a footprint in this market. What we see now is that the size and also the complexity of the projects are continuing to increase and sort of the benefit then of combining then the key competencies from each of the parties is even more important than before. Secondly, we are combining this partnership strategy with a very focused capital deployment plan. Firstly, we will continue to invest in supply chain and fabrication. Now we've already made the major milestone, investing in acquiring then 75% of the fabrication facility in China.
The total investment cost for HydrogenPro is then NOK 48 million . We will continue to be a technology front runner, invest in R&D and innovation. Two good examples of that is of course the electrode facility in Denmark. It is the testing technology center at Herøya. Thirdly, we will continue to scale up the organization. We have now acquired more than 30 people that are hired in the production facility in China. We will of course continue to scale up and hire more experienced resources to execute large-scale projects. Important to say we are very cost conscious, and we will scale up the company in accordance with how the market develops. Number four, it will also be some working capital requirements on large-scale projects.
That is of course a function of sort of payment terms versus margins, et cetera, and the timing of the different projects. Exciting times ahead, and back to you, Elling, to do the summary.
Thank you, Martin. Okay, to sum up, what is the main takeaway highlights I would like you to retain from today's presentation? Our technology leadership through our electrolyzer technology and the efficient electrodes. Global partnership, we are preparing for upscaling. Global fabrication upscaling is ongoing. Growing active sales pipeline. The available market will be more than 100 GW increased production every year for the next decades. HydrogenPro is expanding our organization rapidly in addition to steadily growing our global partnerships. We see strong public commitments for meeting the 2030 and 2050 targets, which will greatly increase the speed of clean hydrogen market growth. Thank you. Now I think we go into the Q&A part of this session.
Yeah. Okay. We got some questions here, and we'll start with the first one. It's related to your investment in China, and the question is it a cooperation agreement or is it an acquisition? It's a follow-up question as well, and that is, does this investment constitute a change to HydrogenPro's previous strategy be going light?
The first question, first of all, we have known and worked with THM for a long period already, so this is a friendly acquisition, and this is an acquisition. We have bought 75% of the company, and we have made a new company where they are minor shareholders into the company. The second question, yes, we are continuing the go light strategy, and this is according to what we have done now, in fact.
The second one, and that is related to the convertible note with DG Fuels. What is the overall thinking around this?
Because the main purpose with us providing the convertible note is to finance then the basic engineering needed will now be conducted during the next few months in order to materialize the project, meaning for the financing of the construction to start. Important to say, HydrogenPro is the exclusive provider for all the electrolyzer capacity for that project. I can add as a third element, we also of course have the optionality then with the convertible note either to offer a short-term financing or potentially also become a shareholder of that company when they raise funds and potentially become a listed company. The main purpose is to offer financing to materialize the project.
Okay. A question related to your technology. How suitable is your technology to run on a variable renewable energy?
It's well suited, I would say. The production plant is made by several equal hydrogen production trains, and it's many of them. Each of these production trains can be operated separately and independent of each other. That means that you can operate up and down the different ones. You can even stop production trains if you want. This is very suitable to the renewable industry or energy sources.
One question regarding Mitsubishi. The question is as follows: You are developing two sites with Mitsubishi for design verification. One is at Herøya. Where is the other?
Yeah. The other one is in Japan, in fact.
We're now currently then undergoing a engineering study for Mitsubishi, which of course then eventually can also then result in a purchase order from Mitsubishi as well. Currently, engineering study.
We are getting close to the final question, and that is, with regard to your projects. Do you expect any further canceled projects or delays in any projects right now? I guess this is somewhat related to your announcements regarding Normandy.
Yeah. Please.
Yeah. I think what's important to say with regards to Normandy is that the application process that was submitted to the French authorities included HydrogenPro's electrolyzer equipment. If it were to be replaced by another vendor, that would also require that project to start from scratch, basically, in terms of the application process. Until we hear anything new, that's sort of our stand on that. Beyond that, at least I'm not aware of any signs of any canceled projects.
Okay. I think that concluded the Q&A.
Okay. Thank you for listening to us.
We'll see you back then in connection with the fourth quarter results.
Okay.