I was sad to see Element 2 placed into administration today, six years after I founded the business and two years after I stepped down as CEO.
But before anyone points to this as a general failure of hydrogen, let me be clear that I believe Element 2’s problems reflect failures in the execution of its business strategy rather than a failure of the underlying market. Other hydrogen-related businesses continue to make progress, and hydrogen has a growing role in applications where batteries are unsuitable.
And that raises questions about what exactly went wrong.
Companies operating in emerging markets face difficult strategic and financial decisions, and the quality of those decisions, particularly when funding becomes constrained, can be critical to their survival.
Since leaving my executive position in 2024, I have raised concerns about aspects of Element 2’s corporate governance and the handling of outstanding obligations. The company’s administration now makes it particularly important to understand the decisions taken over the past two years.
Were all credible financing and restructuring alternatives properly considered?
Were the interests of shareholders and creditors given appropriate consideration as the company’s financial circumstances deteriorated?
And could a different approach have produced a different outcome?
These are legitimate questions, and they deserve evidence-based answers.
The administrators will now have the opportunity to examine the company’s financial position and the circumstances preceding their appointment. That process should provide greater clarity about the decisions taken, the alternatives considered and the extent to which the company’s difficulties could have been addressed.
Shareholders and creditors who have suffered financial losses will understandably want answers.
Where the evidence identifies actionable breaches of duty or other wrongdoing, appropriate remedies may be available through the administration process or to parties with independent legal rights. Administration does not automatically extinguish potential liability arising from earlier conduct.
As Element 2’s founder, a shareholder and a substantial creditor, I have a direct interest in understanding what happened. I intend to cooperate with the administrators and provide relevant information where appropriate.
Looking Forward
I remain convinced that hydrogen has an important role to play in decarbonising heavy transport.
The commercial opportunity that led me to establish Element 2 remains, even though the company itself has encountered serious financial difficulties.
I hope that something worthwhile can be preserved from the business and the efforts of those who helped build it.
Above all, I hope that the people who supported Element 2 receive a clear and transparent explanation of what happened.
The failure of an individual company should not be mistaken for the failure of an entire market. But neither should market conditions prevent proper scrutiny of the decisions that preceded that company’s collapse.
Finally, while this is a very bad day for Element 2’s investors and creditors, I would like to thank all those shareholders and creditors who supported the business during my time as CEO. Their confidence, patience and financial support were instrumental in getting Element 2 off the ground and building it into the business it became.
I recognise that many of those same people now face significant financial losses, and I share their disappointment at how things have turned out.
I will be happy to provide whatever assistance I reasonably can to shareholders and creditors seeking to understand what went wrong over the past two years, subject to my continuing legal and confidentiality obligations.
They deserve answers, and I believe those responsible for the company’s management over the past two years should be prepared to explain the decisions that led to this outcome.
Tim Harper
Founder and Former CEO, Element 2 Limited
6 November 2026