In a comprehensive lawsuit filed by Iwatani Corporation of America against Nel ASA, Nel Hydrogen A/S, Nel Hydrogen Inc., and unnamed defendants (DOEs 1-10), the plaintiff accuses the Norway-based Nel and its affiliates of a series of allegations including misrepresentation, concealment, fraud, and breach of contract, among others.
The legal action, lodged in the Central District of California – Southern Division, outlines a detailed account of alleged deceptive practices surrounding the marketing and sale of hydrogen fueling station equipment by Nel to Iwatani, one of Japan’s largest industrial gas companies aiming to expand its footprint in California’s hydrogen fueling infrastructure.
In a statement issued today, Nel said it strongly rejects the allegations and will vigorously oppose the lawsuit.
Iwatani, with its principal place of business in Texas, embarked on a venture to become a key supplier of hydrogen fueling stations in California. The company was influenced by Nel ASA’s public representations and direct communications, which purportedly showcased Nel’s technological advancements, operational capabilities, and market leadership in hydrogen fueling solutions. These assertions by Nel played a critical role in Iwatani’s decision to select Nel’s H2Station equipment for its ambitious expansion plans in California, which aimed to build out a robust infrastructure for hydrogen fuel cell vehicles.
The lawsuit alleges that Nel engaged in a calculated campaign of misrepresentation and concealment regarding the performance, reliability, and technological maturity of its H2Station equipment. Key claims include the assertion that Nel falsely represented the H2Station as a “new generation” solution with superior performance and efficiency, capable of meeting Iwatani’s stringent requirements for rapid, high-volume fueling operations. Nel’s presentations and documentation allegedly inflated the capabilities of their product, misleading Iwatani about the technology’s readiness and operational reliability.
Moreover, Iwatani claims that Nel concealed the problematic history and performance issues of its previously sold equipment, which had suffered from significant operational failures and had not lived up to the promised standards. According to the complaint, had Iwatani been fully aware of the true performance record and the ongoing disputes between Nel and other customers over equipment failures, it would not have chosen Nel’s H2Station for its projects.
The lawsuit further accuses Nel of engaging in a deliberate scheme to obfuscate the equipment’s defects and to control the flow of information to customers about encountered problems. This scheme allegedly included requiring customers to contract with Nel Hydrogen Inc. for the commissioning, service, maintenance, and operation of the equipment, thereby preventing customers from fully understanding or disclosing the equipment’s operational issues.
Iwatani seeks a comprehensive array of remedies, including but not limited to compensatory and punitive damages, rescission of contracts, restitution, and declaratory relief.
