July 23rd, 2024 | 07:00 CEST
Bloom Energy, First Hydrogen, Nel ASA - Best conditions for a rebound
Germany is not the only country working to develop a sustainable hydrogen market. Economics Minister Robert Habeck recently announced funding for projects totalling EUR 4.6 billion to make the economy climate-neutral. Green hydrogen is set to be a key energy source in the future. The German government projects a hydrogen demand of 95 to 130 TWh annually by 2030 to support industrial decarbonization. This development is not currently reflected in listed companies, which may open up new investment opportunities in the long term.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
BLOOM ENERGY A DL-_0001 | US0937121079 , First Hydrogen Corp. | CA32057N1042 , NEL ASA NK-_20 | NO0010081235
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Bloom Energy - Important hurdle cleared
Contrary to the general market trend, with companies in the hydrogen and fuel cell sector trading close to their annual lows, Bloom Energy has gained around 68% since its annual lows at the end of February. In addition, the long-term downward trend that has been in place since February 2021 has been sustainably broken. The re-test towards the breakout line at USD 12.90 has been successfully averted. The MACD trend-following indicator and the RSI are still "Buy". The next target would be the annual high of USD 18.14. If this is successfully overcome, the path towards the high from January 2023 at USD 26.55 would be clear.
Bloom Energy, which focuses on the further development of energy technologies, in particular through its solid oxide fuel cell products known as Bloom Energy Servers, celebrated a jump of around 13% thanks to a significant cooperation with Core Weave, Inc. Core Weave specializes in specific cloud solutions and will use Bloom Energy fuel cells to produce on-site power in a high-performance data centre.
The new data centre, equipped with advanced cooling systems, is designed to achieve high power density. This will enable Core Weave to develop high-performance and efficient cloud solutions for artificial intelligence. The commissioning of Bloom's fuel cells is planned for the third quarter of 2025.
First Hydrogen - Continuing on the path of expansion
Hydrogen innovator First Hydrogen is in the right place at the right time. However, the achievements of recent months are not reflected in the share price in the slightest. Just after First Hydrogen had completed further test drives of its hydrogen fuel cell-powered light commercial vehicles with online giant Amazon, UK Prime Minister Sir Keir Starmer announced an agenda centred on renewable energy and green initiatives.
The new government will invest GBP 500 million in supporting the development of the UK's green hydrogen sector to increase the country's production capacity and position the UK as a leader in the global hydrogen economy.
During testing in real road conditions, First Hydrogen's vehicles achieved record ranges of 630 km on a single fuel tank. It was also analyzed that there was virtually no drop in vehicle performance when operating in colder temperatures.
Following successful trials with large fleet operators such as Rivus, SSE PLC and the Wales & West Utilities gas supply network, companies from Canada have shown great interest in the commercial vehicles. As a result, First Hydrogen is developing additional demo FCEVs to drive expansion into North America.
For the expansion strategy, a convertible bond totalling CAD 2.7 million with an interest rate of 8% was issued, with the first tranche of CAD 540,000 already placed.
Nel ASA - New lows loom
For a long time, the Norwegians were regarded as the figurehead of at least the European hydrogen industry. But since the stock market hype, when Nel ASA was trading at no less than USD 4.20 at the beginning of 2021, not much remains. Since then, the Company, which develops and produces electrolyzers and hydrogen refuelling stations, has lost over 87% of its stock market value. And following the announcement of the figures for the second quarter, there is even the threat of a slide to new annual lows of USD 0.41.
Although Nel ASA reported a reduction in its loss from NOK 228 million to NOK 118 million, this was due to a write-down of NOK 166 million on the divested stake in Everfuel. Without this factor, the quarterly loss would have almost doubled. In addition, revenue fell from NOK 371 million to NOK 332 million. The EBITDA loss increased from NOK 69 million to NOK 79 million.
Final investment decisions for numerous Nel ASA electrolyser projects are to be made by the end of 2025. Furthermore, the fully automated production plant in Herøya in Norway is to become a flagship in the production of electrolysers. To support future growth and reduce costs through scale, volume, and automation, Nel ASA also plans to expand its production capacity in Europe and North America.
The hydrogen industry is still on the move and is receiving massive political support. Nevertheless, companies such as Nel ASA continue to fall short of expectations. Bloom Energy was able to break its long-term downward trend. First Hydrogen is on course for expansion in North America.
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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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
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