Swedish fuel cell company PowerCell is facing scrutiny over its communication practices following the collapse of a major hydrogen project in Monmouthshire, Wales. According to a report from Swedish public broadcaster SVT, PowerCell announced a potential 200 million kronor framework agreement with British company ColGar Energy, part of the Vantastec group, in 2023 for a groundbreaking project to equip 'Meals on Wheels' vehicles with hydrogen fuel cells.
The project, which aimed to make food delivery vehicles more climate-friendly by using hydrogen fuel cells mounted on vehicle roofs to generate electricity for keeping food warm during transport, was described as a potential major deal for PowerCell. In March 2024, the company reportedly communicated that it had received an initial order worth approximately 35 million kronor for delivery in 2024 and 2025.
This could involve insider information, this should have been communicated,
However, according to sources with good insight cited by SVT, the project did not develop as planned. The customer reportedly became so dissatisfied that the project was stopped after only one test vehicle was delivered. While PowerCell publicly announced both the framework agreement and the initial order, the company never communicated to the stock market that the deal had been terminated.
Sverre Linton, chief legal counsel at Aktiespararna (the Swedish Shareholders' Association), told SVT that such information should normally be communicated. 'This could involve insider information, this should have been communicated,' Linton said. PowerCell responded in an email to SVT that the framework agreement lacked guaranteed volumes and therefore the deal was not booked as revenue or order value in the company's accounts. The company stated that after a comprehensive assessment, PowerCell had determined that the eventually terminated collaboration with ColGar Energy did not constitute insider information.
The framework agreement lacked guaranteed volumes and therefore the deal was not booked as revenue or order value in the company's accounts.
After a comprehensive assessment, PowerCell had determined that the eventually terminated collaboration with ColGar Energy did not constitute insider information.