22. January 2020 | 05:51 CET
Ballard Power, dynaCERT, NEL ASA - which hydrogen technology has potential?
The topic of hydrogen in mobility is currently occupying the economy, politics and investors. The stock market is looking for companies that develop solutions with the energy carrier of the future, because hydrogen can be used as an energy storage medium in electric mobility as an alternative to the battery. While some innovations are not yet ready for the market on a large scale due to a lack of infrastructure, there is already a solution that is being offered in series.
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ISIN: CA0585861085 , NO0010081235 , CA26780A1084
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Fuel cell producer in high gear
Ballard Power is a manufacturer of fuel cells that can be used in all vehicles on land, sea and air. The crux of the matter, however, is that the hydrogen should be produced with renewable energies so that the CO2 balance is neutral. The scalable use of hydrogen and fuel cells is therefore dependent on an infrastructure that is linked to renewable energies. So, similar to a battery, it makes no sense that the exhaust gases are produced elsewhere, compared to combustion engines.
According to a presentation in connection with the figures for the first nine months of 2019, the company had an order backlog with a delivery date within one year of USD 123.6 million, with total orders on hand amounting to USD 199.6 million. However, revenues for the first nine months of 2019 were USD 64.4 million, resulting in a loss of USD 20.8 million. With a share price of EUR 10.00, the market value is currently around EUR 2.5 billion.
Scalable hydrogen technology for today
dynaCERT has finally brought a hydrogen technology to market in 2019, which is now to be globally distributed in 2020. The special feature of this innovation is that hydrogen is produced on demand as a catalyst to increase the efficiency of diesel engines. The dynaCERT unit was developed for retrofitting and the purchase costs for trucks and buses with average mileage are amortized within less than one year, according to the manufacturer.
Test results promise a reduction of up to 19% of diesel consumption. In addition, NOx emissions can be reduced by up to 88%. Particulate matter emissions are also reduced by up to 55%. CO2 emissions are also reduced by up to 9%. Thus, dynaCERT's hydrogen technology combines environmental protection with an economic advantage.
The CEO Jim Payne expects monthly sales of an average of 2,000 units in 2020. The wholesale price of CAD 6,000.00 per device leads to a sales potential of 144 million CAD with the promised number of units. At a price of EUR 0.66, the market value of dynaCERT is approximately EUR 223 million, which is less than 10% of Ballard Power's value, with potentially similar sales in 2020.
Plant manufacturer with capital increase
At a price of EUR 1,02 per share, NEL ASA has a market capitalization of EUR 1,3 billion. The company develops plants and equipment for the production of hydrogen. The establishment of a nationwide network of hydrogen filling stations would bring a lot of money into NEL ASA's coffers. In the first nine months of 2019, the company generated sales of EUR 39.4 million and made a loss of EUR 17.4 million.
In a news release, NEL ASA announced a capital increase by 89 million shares. The loss-making company therefore needs additional liquidity. The order backlog at the end of the third quarter of 2019 was 57.5 million EUR.
Only green hydrogen is climate friendly
In conclusion, it must be stated that climate-friendly hydrogen must be produced from renewable energy. The extraction of hydrogen from the energy of coal-fired power plants or gas merely leads to a shift in CO2 production. Based on the fact that the resistance of the population to wind and solar power plants in the countryside is increasing, the widespread green hydrogen still remains a vision of the future.
The hydrogen technology of dynaCERT, on the other hand, is already a practicable progress today, as it reduces fuel consumption by almost one fifth. Another advantage is that the devices can be retrofitted to existing vehicles, locomotives and ships.