January 22nd, 2024 | 07:15 CET
Daimler Truck, dynaCERT, Plug Power - Hydrogen: The future king of energy sources?
Against the backdrop of climate change and dwindling fossil fuel resources, the world is at a turning point that necessitates a redesign of energy supply. Hydrogen is emerging as the centerpiece of a future low-carbon economy, especially in the transportation sector. This sector, which is currently heavily dependent on fossil fuels, accounts for a significant proportion of global greenhouse gas emissions. In a world seeking sustainable, long-term energy solutions, hydrogen could provide the answer to some of the most pressing challenges of our time. Today, we look at three companies working to reduce emissions using hydrogen.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
Daimler Truck Holding AG | DE000DTR0013 , DYNACERT INC. | CA26780A1084 , PLUG POWER INC. DL-_01 | US72919P2020
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Daimler Truck - Increased Revenue in 2023
As a leading manufacturer in the truck industry, Daimler Truck is faced with the complex task of aligning the world of transportation for a sustainable future. In the face of increasingly stringent emissions regulations and the growing global need for climate-friendly transportation solutions, Daimler Truck is not only present with electric trucks but is also expanding its commitment to hydrogen technology. While battery electric vehicles can provide a quick solution for short- to medium-distance deliveries, hydrogen drive demonstrates its potential in long-distance transportation - areas where the storage capacity and range of battery technology still face limitations.
On January 15, the Group published an update on its business in 2023, which was characterized by a difficult economic situation. Despite this, sales increased by 1% to 526,053 trucks and buses, with North America recording growth of 4% and Asia 3%. The situation was worse in Europe and South America, where sales fell by around 5%. However, management is sticking to its financial forecast for 2023 and emphasized that sales of battery electric vehicles have more than tripled. Conventional trucks are still selling significantly more than those with electric drives because the vehicles are not yet suitable for long distances.
Daimler Truck and its partners Accelera and PACCAR plan to build a battery cell plant in the US state of Mississippi, which is expected to start production by 2027 and create 2,000 jobs. The total investment is estimated to be between two to three billion USD. In the meantime, the Company is pursuing a dual approach of electric and hydrogen propulsion. Technological diversity is needed to meet the diverse requirements of the logistics industry and, at the same time, guarantee environmentally friendly progress. The figures for the fourth quarter are scheduled for March 1. The share has been under pressure since early January after a steep rise and is currently trading at EUR 30.88.
dynaCERT - Promising prospects for 2024
On December 28, the Canadian company dynaCERT presented a successful review of 2023 and provided an outlook for the coming year. The sales successes of the fourth quarter and the response to the HydraGEN™ technology show promising prospects for the current year. Last year, several pilot projects were successfully completed. The orders come from various industries such as mining, food production and energy companies. New dealers were acquired in Europe, resulting in the presentation of the HydraGEN™ technology at Solutrans 2023. Customers appreciate the opportunity to simultaneously reduce fuel consumption and emissions through the injection of hydrogen and oxygen for combustion optimization in diesel engines.
In late November, the final hurdle for Verra certification was cleared. Earthood Services submitted the final assessment report on the HydraGEN™ technology. This means that nothing stands in the way of certification, which is now expected in early 2024. The support of the French Team Holeshot Competition at the DAKAR 2024 has significantly increased dynaCERT's brand awareness. The team secured 3rd place and thus generated additional attention. In December, the Company strengthened its balance sheet by successfully raising CAD 3.86 million through a private placement. According to an announcement on January 20, this may increase to CAD 6 million in the next 30 days.
The money was used to repay a convertible bond and to increase the stake in Cipher Neutron. The remainder is available as working capital to process orders. As soon as the Company receives the CO2 credits, the number of orders for the HydraGEN™ units should increase significantly. This creates a win-win-win situation for customers, the environment and dynaCERT. The share is currently trading at exactly the private placement issue price of CAD 0.15. This is likely due to the pending certification. After the certification report, the share price was already CAD 0.21. This price will likely be reached again quickly upon Verra's approval.
Plug Power - Uncertain future
Hydrogen fuel cell specialist Plug Power dealt another blow to its investors when its share price hit a record low following the announcement of a massive capital increase. Already badly shaken by persistent losses, the Company is in a precarious financial situation that is alarming investors and analysts alike. Last Thursday, Plug Power's shares closed with a decline of 11.5%, reaching their lowest level since September 2019. The announcement to generate up to USD 1 billion through share sales raised doubts among investors about the long-term financial viability of the Company's operations.
Analysts expressed skepticism as to whether this amount would be sufficient to secure the business beyond the current year. Management may have to announce unpopular decisions on January 23 to stabilize the Company, including organizational shrinkage and strategic course corrections. The upcoming announcement of preliminary Q4 results and the preview of future expectations is eagerly awaited by many. Previous management expectations could be revised downwards in this meeting, which may further shake investor confidence.
The other option is that the negotiations with the Department of Energy succeeded, and the Company receives a USD 1.5 billion loan guarantee. Any improvements in margins and business results could also improve the Company's future prospects. Investors and market observers will be eager to see how the announcements, which could be the most important in Plug Power's history, turn out. The shares closed last Friday at USD 2.68 on the NASDAQ. The Company can now only surprise on the upside.
Hydrogen has the potential to solve problems in many areas. Daimler Truck has also recognized this and is developing hydrogen-powered trucks. Despite challenging conditions, the Company was able to increase its turnover. dynaCERT optimizes the combustion process of diesel engines and thus saves fuel and emissions. These savings could soon be recognized as CO2 certificates, which should boost the share. Plug Power was thinking big and wanted to cover the entire hydrogen value chain. Now that financing is hard to come by, this strategy is proving challenging for the Company. It is worth noting January 23 in the calendar for potential developments in this regard.
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") 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.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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