Close menu

April 6th, 2022 | 10:28 CEST

BASF, First Hydrogen, Nel - These developments are crucial!

  • Hydrogen
Photo credits:

A functioning energy supply influences the prosperity of society and our everyday lives. Security of supply and "affordable" energy prices currently present major challenges. Renewable energies are expected to provide most electricity and energy consumption within the next decades. Green hydrogen is also likely to play an important role. However, high oil and gas prices are placing an enormous burden on consumers and industry in the short term. Inflation continues to grow. How can investors position themselves?

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: BASF SE NA O.N. | DE000BASF111 , First Hydrogen Corp. | CA32057N1042 , NEL ASA NK-_20 | NO0010081235

Table of contents:

    Dirk Graszt, CEO, Clean Logistics SE
    "[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE

    Full interview


    BASF - Domino effect?

    "It depends" - this is how one could summarize analysts' assessments of BASF shares. If the prices for oil and gas remain manageable and there is a sufficient supply from Russia, then the share is too cheap. If prices continue to explode, then it is not only the Ludwigshafen-based Company that faces major problems.

    Company director Martin Brudermüller recently warned urgently of the consequences of an import stop or a longer-term loss of gas and oil supplies from Russia and painted a bleak picture. "This could bring the German economy into its most serious crisis since the end of World War II," Brudermüller said. He said that Germany's complete renunciation of Russian natural gas supplies is not realistic for another four or five years. "At a certain point, you can no longer operate a site like Ludwigshafen," was his message.

    Such a worst-case scenario would have severe consequences for numerous sectors of the economy, as BASF's products are at the beginning of the value chain and, therefore, highly relevant. During the Corona pandemic, the supply chain problems have already shown us how fragile the globally networked economy is. Since the beginning of the year, the share price has fallen by around 20%. Based on the average price target of all analysts, this decline in the share price results in an upside potential of almost 40%.

    First Hydrogen - Fully on track

    First Hydrogen aims to become the leading designer and manufacturer of zero-emission, long-range hydrogen-powered vehicles in the UK, EU and North America. According to expert estimates, the global hydrogen fuel cell market is growing rapidly and is expected to reach USD 41 billion in five years.

    The Canadians are pursuing a best-of strategy. That means integrating existing technologies and a proven chassis. Central to its success are its strong partnerships with AVL and Ballard Power. Currently, First Hydrogen is working with its partners on the vehicle concept and architecture and evaluating production. The Company has set the completion date for the prototype, the First Hydrogen Utility Van, for the third quarter of the current fiscal year.

    Recently, the Company confirmed that it was right on schedule. Steve Gill, Automotive Division CEO of First Hydrogen, said, "We are very pleased with the progress in delivering our two demonstration vehicles in collaboration with our partners AVL and Ballard. We are essentially on track to introduce our road-going vehicles to customers in September 2022. Our joint development of this hydrogen fuel cell vehicle will distinguish us as the market leader for fuel cell vehicles in the light commercial vehicle sector. It is a good foundation for our next generation of customized hydrogen fuel cell vehicles, which will incorporate all the technical developments we have achieved to date."

    They are also designing and building the prototype for a custom hydrogen fueling station in collaboration with FEV Consulting GmbH of Germany. For this purpose, the Canadians had strengthened their staff with experienced managers. Strategically and commercially, the expansion of the value chain is advantageous. The Company's share price has tripled in the last 12 months. Currently, the Company has a market capitalization of around CAD 150 million. When looking at other companies in the sector, the valuation can be classified as very moderate.

    Nel - The assembly lines will soon be starting up

    High gas prices will accelerate technological change in the energy industry. According to many experts, the production of green hydrogen, with the replacement of natural gas in favor of water electrolysis with electricity from renewable sources, will gain importance. One of those beneficiaries is Nel.

    The Norwegian company recently reported a concrete timetable for its planned production. According to the Company, the automated production facility in Herøya, Norway, is scheduled to go into operation on April 20. The electrolyzer plant can initially produce 500 MW of capacity, which the Company's leader says can be expanded to between 1 and 2 GW.

    The energy transition is well underway, but the transformation will take many years. Consumers and industry are currently suffering from high oil and gas prices. Nel and First Hydrogen are well-positioned to benefit from the dynamic growth of the hydrogen market. First Hydrogen, in particular, shines with solid partnerships and a low company valuation.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Juliane Zielonka on May 26th, 2023 | 08:30 CEST

    FREYR Battery, dynaCERT, BYD - Speed beats engineering and bureaucracy

    • Hydrogen
    • greenhydrogen
    • Electromobility
    • Batteries

    The hunt is on for high-performance powertrains! Industry-experienced Canadian hydrogen technology company dynaCERT shines with a new collaboration with Cipher Neutron. Together they are creating an electrolyzer cell that will produce 28 times more hydrogen gas than conventional cells. FREYR Battery is also making progress with its battery gigafactories, but soon on the other side of the Atlantic due to tax advantages, as the domestic government in Norway seems too slow. Progress could be faster at Volkswagen. What good is German engineering when rival BYD is not only selling cars at a breathtaking speed but also securing battery production in China for the Company's own growth? We provide an overview.


    Commented by André Will-Laudien on May 23rd, 2023 | 08:00 CEST

    DAX on a record chase, and hydrogen is making a comeback! VW, Daimler Truck, First Hydrogen, Traton. Who can convince?

    • Hydrogen
    • fuelcell
    • Electromobility

    The EU wants to invest about EUR 25 billion in hydrogen over the next 10 years. To this end, the Commission has drafted the concept of a "Hydrogen Accelerator" to promote the use of renewable hydrogen. The "REPowerEU plan" launched for this purpose aims to produce 10 million tons of renewable hydrogen within the EU by 2030 and to import a further 10 million tons. It is hoped that this will provide an important building block for saving the climate. The private sector is also involved. We take a look at some of the key players.


    Commented by Fabian Lorenz on May 17th, 2023 | 07:55 CEST

    Movement in the hydrogen sector: What are Nel ASA, ThyssenKrupp and dynaCERT doing?

    • Hydrogen
    • greenhydrogen
    • renewableenergies

    There never seems to be a dull moment in the hydrogen sector. After the horror figures and the announced capital measure at Plug Power, Stellantis' investment in Symbio is a positive signal for the sector. French Symbio is focused on zero-emission hydrogen mobility and was previously owned by the Forvia Group and tyre manufacturer Michelin. Now Stellantis, the third largest car manufacturer in the world with brands like Peugeot, Opel and Fiat, has acquired a 33.3% stake. According to Stellantis, hydrogen fuel cells are necessary to achieve climate protection goals. dynaCERT also wants to contribute to this. Perhaps a big partner will soon join the Canadians? And what is the hydrogen pioneer Nel ASA doing with its partner General Motors? ThyssenKrupp is making its subsidiary look good for the hydrogen IPO.