17. June 2020 | 10:13 CET
Ballard Power, dynaCERT, ITM Power - what hydrogen investors need to know now
The hydrogen industry is in the focus of investors and the energy carrier is giving hope to politics and economy. While the general public still has to struggle with the Corona consequences, the champagne mood has already returned at the stock exchange with the hydrogen shares. Every announcement with details of turnover and visions is frenetically celebrated and leads to an increase in market capitalization through share purchases. Scalable business models with a focus on environmental protection are in demand and, as is well known, money can be earned with solutions.
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ISIN: CA26780A1084 , CA0585861085 , GB00B0130H42
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Supplier for vehicle manufacturers
Ballard Power's share price yesterday reached the highest price since 2003 on the Canadian home market TSX. At the peak, the shares changed hands at CAD 19.73. At this level, the company is not far from reaching the CAD 5 billion market capitalization. The manufacturer of fuel cells has been able to record an increase in value of around 100% since the beginning of the year.
However, the trees do not grow into the sky and to justify a valuation at this level in the long term, not only great products are needed, but also corresponding growth rates and profits.
Solution for now and today
dynaCERT has developed a technology that uses hydrogen as a catalyst and not as a fuel. The patented innovation is called HydraGEN and is offered for retrofitting diesel engines. The market for the technology is huge and the operational development after the Corona restrictions is extremely exciting. Whoever uses HydroGEN not only saves up to 20% diesel, but at the same time protects the environment by reducing pollutant emissions.
The company is also listed in Canada and will shortly complete the segment change from TSXV to TSX. This step was accompanied by a capital measure. The company has received CAD 7.3 million in fresh equity for expansion. The market value of dynaCERT is currently around CAD 245 million. At CAD 0.71, the stock is currently trading far below its February 2020 high of CAD 1.25.
Infrastructure partner for hydrogen
ITM Power from Great Britain focuses on the development and manufacture of hydrogen generation and storage systems. The company equips filling stations and is therefore a predestined partner for the development of a nationwide filling station network. The value of the company now amounts to EUR 1.6 billion and has brought shareholders in the past 12 months an increase in value of over 800%.
In Germany alone there are 14,000 filling stations with gasoline and diesel. Assuming that hydrogen should become established as an energy carrier and fuel for the new mobility, it is to be expected that the supply in Germany will require a comparable density of filling stations.