Okay. Welcome, everyone, to the 2nd quarter presentation. Welcome to those of you following this over the web and also welcome to everyone here in the room. We are in a new location. Due to the COVID-nineteen situation.
We are practicing social distancing and pre registration, but thank you very much for showing up. We have a new location. So let me just start out by pointing out the emergency exit, which is straight behind you. And then you have to leave the same way we came in, not on the left hand side, but straight out the back and the assembly point is in the front. And there are no alarms planned for today.
We will go through the agenda today. We'll go through the financial highlights of the Q2, including the financial review. We will also go through some of the highlights, the key developments for the quarter after the general introduction about the company. We will finish off with a summary and outlook before we open up for questions. And if you have questions, you can always ask them at the end, but you can also post them online during the presentation.
So let's start with the Q2 highlights. The revenues were negatively affected by the COVID-nineteen situation, but grew with 21% compared to the same quarter last year, something that we are relatively happy about, even though we had expected more. The order backlog is again hitting all time high level and increased by as much as 75% from the end of the last quarter. Orders are getting larger in size and there has been quite a lot of activity, even though we were in the middle of the COVID-nineteen or the pandemic. As you know, we got a PO from Nicola.
We got a very large station order for multiple stations. We got more station orders from South Korea. We got an order for 2.5 Megawatt PEM Electorizer, and we also took over the shares in Uno Ek Sidergem, the joint venture, where and UnoX is actually taking over the assets of Innva and Olsanme. So we since I'm not going to cover that later, I'll cover that now. We will continue to run this entity and move forward with it, and we will invite new investors into the JV going forward.
After the quarter, we also reported R and D grants, both on PEM and alkali, and I'll cover all of these events in more detail later in the presentation. So let's move over to the financial review. In terms of response to COVID-nineteen, we immediately reduced the numbers of hired personnel and contracted personnel down to a minimum. However, we decided to keep and maintain our remaining workforce intact in hope for a faster recovery in the hydrogen industry compared to some other industries that you've seen. We will obviously keep assessing this situation going forward, but so far, we are happy with that decision.
EBITDA has improved, but will still be and is negatively impacted by 1 offs and ramp up cost. And I would like to point out that we expect that these ramp up costs will increase going forward as we accelerate our organizational development and also now start to hire for the next wave of employees that is going into the Hialeah expansion, which we'll also talk about a bit later. Our reported net income is very positive and mainly related to the Nicolas investment. As you may know, we now have to do mark to market calculations every quarter, and that has will generate swings, you can imagine. And if I were to give you a little tool, a $10 swing in the Nikolaj share price represents roughly NOK100 1,000,000 swing in the valuation.
So we will keep adjusting every quarter. And if I were to do the same exact calculation today due to change in share price and dollar, the valuation would have been NOK 250,000,000 to NOK 300,000,000 lower than we have recorded in our books. Cash position is very strong, more than NOK 2,500,000,000. This is increasingly important. In June, we were able to raise NOK 1,300,000,000 in gross proceeds, and the transaction attracted a lot of interest.
So it was oversubscribed, something that we are very happy about. It is important for us to have a strong financial position to be able to execute on our strategic plans. And even more so during or through this coronavirus pandemic because we see coming out of this, there are some significant opportunities that we may need to address. We'll talk a bit more about that later. The funds will obviously be used to accelerate our organizational development in and technology development in response to a long term promising market, but also gives us some more flexibility if there are strategic opportunities that may arise.
In terms of order backlog, it is all time high. Q2 2020 so far goes into the history books. In our company, we received more than NOK600 1,000,000 worth in orders in this quarter alone, something that you cannot expect every quarter. So let me point that out straight away. As the projects are getting bigger, it takes a bit longer time to agree on all the details, both financially and technology from a technology point of view.
And therefore, this is not something that we will be able to see. It will come in some quarters, you will see a lot of orders coming in and other quarters, it will be smaller and less so. So there will be swings, just to point that out. Also note that a lot of the backlog here relates to 2021 beyond. So we still need to close some more orders throughout the second half of this year to be able to maintain the revenue that we hope to have.
We also have been given some more insight into the Clearstream account, which is a nominee account that is controlled by Deutsche Borse. It's an account that support a kind of marketplace for the NEL share in Central Europe. And we it has grown quite significantly over the since 2018 and is now approximately 44% or slightly more than 44% of our shareholding. Nel has asked for insight into this account, and we've been given that, and we can now report that there is about more than 140,000 private shareholders and more than 160 institutional shareholders. And as far as we can understand, the biggest shareholding from a private is in the range of 2,000,000 shares and the biggest shareholding from an institutional is slightly north of 30,000,000 NEL shares.
So with that, let me move over then to the NEL in brief for new listeners in particular. And here what makes Nel different to many other is that we are integrated. We deliver both electrolyzers and fueling stations. We are also a pure play hydrogen technology company that do in house development and in house production of our own technology. And we put these together in packages and that we can deliver, which makes us different to many others.
We are also becoming increasingly global. We have facilities in Norway, Denmark and in the United States. We also have people and organization in many other relevant markets in California, Korea, Japan, China and other markets where we need a presence. We are the world's largest electrolyzer manufacturer. We have delivered more than 3,500 systems in more than 80 countries.
On fueling stations, we have a slightly lower track record, but we are working on more than 80 stations now in different parts of the world in 9 different countries. We on the electrolyzer side, we are presence on both relevant platforms, both PEM and alkaline, and we have the target to have the most attractive product offering on both platforms. So in other words, we are working very hard every day to improve the TCO, the total cost of ownership for our customers of equipment. And that means reducing CapEx and improving efficiency at the same time. That is basically what we are doing.
On the fueling station, we already have a portfolio of technology or products that address light duty vehicles, in other words, cars. These units are pre certified for Europe and Korea and in the United States, which makes it easy for the end customer to get them installed and approved. But we are now developing a range of technology components or elements, which will be relevant for heavy duty applications. And that is to support the market development and the accelerated development that we see there, but also to support obviously our partner, Nicolas, with their ambitious targets. We're also working in general to improve the performance of the equipment to increase the reliability and robustness of the fueling station technology.
As mentioned, we have 3 main locations manufacturing locations. We have Wallingford, Connecticut, where we have slightly more than 40 megawatt PEM electrolyzer capacity. We have are working on our expansion in Norway, where we have facilities in Noton and Harre. And then obviously, we have our new facility in Denmark or maybe not so new anymore, where we can produce more than 300 stations per year. We have a long track record and a long history, the longest in the industry.
We have 20, 30 years on PEM, we have more than 90 years on alkaline and we have approximately or more than 15 years on the fueling station. And that means that we also have a lot of equipment sitting in the field, as you can understand, where customers new customers can come and see. They can talk to an existing customer, they can come and see an existing facility that has been sitting there for many years, and they give us good references. So with that, let's turn to some of the key developments of the quarter. And let me start by congratulating our partner, Nicolas, a fantastic listing on NASDAQ.
Nicolas also raised a lot of capital in the transaction and now holds a lot of cash, which will enable them to execute on their strategic and business plan, and that we think is really good. We also want to thank them for the order that we got, the more than $30,000,000 PO for electrolyzer equipment. This initial order will allow Nikola to produce more than 40,000 kilos of hydrogen every day in 5 different locations and to support a lot of fuel cell electric truck. This will also support the ramp up of the Harjia facility, which will hit commercial production in the Q3 next year. Test production and testing of the line in the Q2 and commercial ramp up from the Q3 next year.
We're still working on the final design and technical solutions related to the downstream fueling equipment for Nikola. And this part of the equipment will be placed in the PEO when Nikola knows more exactly the sites that they will choose and the order of those sites. We received a large station order from an international company, undisclosed for the time being. The value of the PO was more than NOK 150,000,000 and this is equivalent for light duty vehicles, in other words, cars, which will be installed in multiple locations throughout 2021. The customer has also remained unnamed for still some time, but I think you will learn more about this in the second half sometime during the second half of this year.
We have been working for quite some time also with a company called Life, a French company. They have already given us a small order, but this small order has now been incorporated into frame agreement of 60 megawatt electrolyzers. Life will mainly focus on the French market and will develop projects and target to be an owner operator of green hydrogen production facilities in France, which is good for us to have a partner in France like that because the French market can be a bit difficult sometimes for non French companies, and now we have someone that we can work with systematically to address different projects in that part of the world. We also received order for 3 additional stations to South Korea. You know that the South Korea has very ambitious targets in terms of growing their infrastructure for fueling station infrastructure, more than 300 stations by the end of 2022.
So they are in a hurry. This order came from Hynet, which is a JV where we are also a partner and Hynet has a target to install 100 of these 300 plus stations. We're very obviously very happy with the development that we've seen in Korea so far. And this picture is actually from the team when they hit the button on the first station and turn it into turn it on and open it up for the public. They were celebrating a bit here just a few months ago.
We received a purchase order for a 2.5 Megawatt PEM electrolyzer also in the quarter from a customer in Central Europe. Also here, the customer has asked to remain unnamed for the time being simply because this project will be officially launched a bit later this year, and then they will do it with a big splash. But they've already placed the order for the PEM electrolyzer for us, and you will probably hear more about that relatively soon. After the end of the quarter, we secured 2 separate development grants, 1 in Norway amounting to around NOK 60,000,000 for the next generation alkaline electrolyzer. This is the technology that will be tried and tested in Yara's facility at Haria and go into the production of green ammonia.
We also received a grant from DOE, Department of Energy in the United States for the development of next generation PEM electrolyzers. And as you understand, we push very hard to be have the most attractive portfolio of technologies, both on the existing platforms, but obviously always planning for what could be the next platform. And that is basically what we're doing here
also.
The Hara expansion is moving forward. We are designing the largest production facility in the world for electrolyzers. This will consist of a fully automated chemical line with supporting robot cells, and it will be unlike anything the world has seen before. The plant will run according to the latest and best lean manufacturing principles, and it will significantly reduce the cost of our products is a very important step forward for Nel. The expansion team has now run simulations in 3 d models with the new line And I've already been able to identify a number of improvements of the line.
So they now see that the line that we have designed, we can push more material. We can have faster throughput of the material in the line. So they've been able to recalculate the capacity of the first line that we are now installing. And that's why we today can communicate to you that we are no longer talking about 3 60 megawatt, we're talking about 500 megawatt that we believe that we can get out of that same exact line. And that is good news for cost and good news for improvements.
And that is basically what you see when you put a great team together that works systematically at looking constantly chasing improvements. And they are actually and this is actually before they even started the line, before it's installed. That means that we have room to expand at Harjiao. If we add in all the three lines, this facility could potentially end up being more than 2 gigawatts of capacity. So that's a positive news.
On the negative side, we see very little momentum in Norway, and we have to be honest about this. We have to tell it straight out. The strategy that we saw that was launched on the 3rd June is basically nothing. It doesn't include any concrete plans. It doesn't support rollout of infrastructure for green hydrogen production.
It only focuses on small pilots. And from that perspective, it's quite a disappointment. It will leave Norway behind, and that we have to just tell it as it is. We have had meetings with various ministries, the Ministry of Climate and Energy Climate and Environment, Petroleum and Energy, try to explain the situation. We see that the mandate that the government has given Enova, which is a funding agency, will not allow them to do what they would like.
I think Enova would like to support more projects, but they're limited by their mandate. So that has to be changed. And it is a massive contrast to what we see in other parts of the world, what we see especially in Europe, where country after country, including European Union, are setting really ambitious targets to turn hydrogen into becoming a part of the future and accelerating the energy transition. If this remains unchanged, Nel will have to consider evaluating whether we should move our facilities or do expansions other places closer to the customer. That is the consequence at the end of the day.
But obviously, we need to evaluate the situation how this developed going forward, but that is the status in Norway as of today. Then it's much more positive to look to Europe, very encouraging developments. And we have been so fortunate that we have now been elected into the Board of Hydrogen Europe. That gives us a chance to influence, but also gives us a chance to push the hydrogen industry forward in Europe, which is great. And if you go into the web page of Hydrogen Europe, you'll see they have more than 160 members, and we are talking about the biggest companies in the world here, automotive, energy, gas companies, very impressive list.
And for those of you that followed our Q1 presentation, you may remember Georgiou. We invited him to just talk about the 2 times 40 gigawatt initiative, and is the Secretary General of Hydrogen Europe, very enthusiastic, good guy. And the 2x40 gigawatt electrolyze initiatives, if you don't know it, you should take a look at it. Very encouraging development in Europe. And then obviously, we have the great Frans Timmermans, number 2 in the European Union.
He says hydrogen rocks and is really positive about hydrogen. He wants to make hydrogen a part of the corona recovery plan, and that will solve 2 issues, he says, at the same time. It will create massive amount of new jobs, which Europe needs, but it will also accelerate the energy transition and the turn to a 0 carbon emission environment. Hydrogen is now a part of the European Green Deal, and that will ensure and support Europe's ambitions to become the 1st carbon neutral continent in the world. And from that perspective, I don't think I mean, it's been frustrating with COVID-nineteen situation, but from that perspective, we could not have asked for a better kind of outcome if this pans out the way it looks to do now.
Obviously, a lot of work remains. I mean, we obviously need to support this and position ourselves accordingly. Okay. So let's finish off with summary and outlook before we open up for questions. So despite the COVID-nineteen situation, fundamentally, we have not changed our strategy.
We still focus strongly on becoming or being world class on safety. We are working very hard to maintain the cost leadership. We are pushing hard to be a technology frontrunner. That means both related to CapEx and OpEx for our customers. We want to be the preferred partner, we want to be trustworthy, and we want to be able to offer reliable and unique products and services for our customers.
We want to have a strong finance be financially strong, so we can execute on our plans and that people actually believe that we have the funding to do so and becoming increasingly important with larger and larger projects and bigger customers. And we want to continue to develop our global presence in the relevant markets. When it comes to the COVID-nineteen pandemic, safety is obviously number 1, safety for employees, safety for their families and for other stakeholders around Nel. Our results will be continue to be negatively impacted by COVID-nineteen pandemic. It will most likely last until the end of 2020.
It will most likely continue to negatively impact the business general business environment, orders received, installations, commissioning and hence also the resulting revenue recognition. As you know, NEL is geared for growth. So when we carry additional indirect cost and the top line doesn't follow, you will see a negative impact also on net results. But it's also not all negative, as we talked about. It seems like hydrogen will and related activities are accelerating, and we've seen the green recovery is now widely supported in different parts of the world.
And therefore, we reiterate our confidence on the long term potential and we obviously maintain the overall NEL strategy. That means that we will accelerate our investments into organizations, technology and partnerships. It means that we will continue to push to have a leading position on both PEM and alkaline and also push to transition our technology portfolio from light duty and more and more over to heavy duty applications when it comes to fueling stations to support the underlying growth ambitions and the market developments that we see longer term. So but do remember then that short term and throughout the rest of this year, you will most likely see a negative impact. And hence, you shouldn't expect that the coming couple of quarters will be significantly different than the quarter that we just left behind.
We had ambitions to have a Capital Markets Day in June, and that obviously didn't happen due to the COVID-nineteen situation. We then reassessed it to see whether we could do it in September. And now we are targeting to do it at the end of November. And that will give us a chance to assemble the whole management team. So you will have a chance to meet everyone and hear them speak about technology developments, what happens in the various facilities, expansion plans, cost reductions and all of those elements.
So our target is to invite you back late November for full fledged Capital Markets Day, and we hope that nothing unexpected will happen in the meantime, so we can actually keep that target. So with that, that completes the formal part of the presentation, and I think we can open up for some questions, both here in the room, if anyone has any or if there are questions online, Bjorn?
Yes. Let's start with questions in the room. Are there any questions? We have Thierry here that has a microphone. She can hold it in a good distance, so you can ask your question.
If not, we'll just start with someone from with some questions from the web. We have, as usual, quite a few. So there is several questions around the Harria expansion. We have one from Anders Rosenen. He's asking how much money has been spent at the Harvea plant as of end of Q2 2020.
We have James Carmichael, which is asking what will be the cost implications of going to 500 Megawatts?
So the majority of the investment is still ahead of us, not behind us, related to the higher expansion. When you order equipment, you typically order a down payment and then you order and then you pay as you move through the cycle. The last piece is when the equipment is installed and commissioned and up and running. So I would say that the majority of the investment is still in front of us. When it comes to the cost of going to 500 megawatt, I mean, the investment is not it's exactly the same.
What the cost would then relate to adding more people, but obviously, you get more capacity out of the same indirect cost. So we think that rather than being more costly, it will give us a better cost position by running at 500 megawatt compared to 360. And that's obviously the start. We think that the team when they start working with the line and tweaking it and pushing it, I think we can get even more out, but that we can get back to later.
Then we have a question about the Nel shareholding in Nicolas from Shibu Wang, which is asking could you please give us more details how much shareholding Nel has in Nikola?
I think, Christian, we have made now a pretty detailed note, haven't we?
There's a very good
note in the quarterly report. Right. So there's a good note in the quarterly report. So you're encouraged to look further into that. We have approximately 1,100,000 shares in Icola.
So it's fairly easy to figure out the percentage of that. Do we have any questions here in the room? All right, let's go for another one on the web. Then there are some questions on the Nikola order. Mikael Nihult is asking about the order.
You already covered when we can expect the station order. And he is also asking on what is the expected CapEx on the total stations.
I think you need to talk to Nicolas about the total CapEx. We are obviously a supplier, and we obviously know the part that we deliver, but there's probably more around the station. You need to have asphalt and you need to prepare the groundwork and etcetera, etcetera. So I think that's better that we leave that question to Nicolas. Let's see.
And then there are a couple of questions also related to currency exchange rates And what influence does that have on top line order backlog and so forth? Maybe
Maybe Kristel, you can answer that.
Okay. So we do, of course, report in Norwegian kroner, whereas most of our orders and sales are in euros and dollars. That means that we will have fluctuations based on that. We haven't started reporting it. When the Norwegian krona weakens as it did in quarter 1, we have a positive impact on the order backlog of that.
That has been less now in the second quarter.
Do we have any questions here? I did get a question about the Rotalizer. What's the status on that? So I actually asked one of our R and D people and we are still working on it. We have now initiated a project where we are improving the electrodes of the electrode coatings to improve the efficiency of the units.
So we now have it disassembled. We are working on that. We are going to assemble that again and then start it up to see how it works. I think those are the most common questions among the Thomas de Debas. So I think unless there are any questions here, I think we'll just wrap it up there.
Wonderful. Thank you very much for coming to see us and welcome back again in the for the 3rd quarter presentation. Thank you.