01. June 2021 | 09:20 CET
dynaCERT, Plug Power, Nel ASA - Hydrogen stocks pick up speed again!
Undeniably, 2020 was a fantastic year for stocks even remotely involved in hydrogen technology. It seems all too obvious that hydrogen will become an essential part of the new energy mix and play a central role in most major industrial and transportation projects. Whether as a fuel in the automotive industry (both for combustion and in fuel cell technology) or as a storage medium for smart power grids, the high-energy gas that burns only to form water is seen as the answer to many questions. Then, in early 2021, a trend reversal. Too many uncertainties about the green production and usability of hydrogen technology unsettled investors, so a correction followed. Now, however, hydrogen stocks are starting a new rally, and those who were too late last time should think about getting in now.
time to read: 4 minutes by Carsten Mainitz
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
dynaCERT - Win-win situation: billions saved through optimization
Scientists at the Canadian Company dynaCERT have come up with an ingenious invention. If a small percentage of hydrogen is added to the combustion air of conventional diesel engines, combustion is optimized and carbon dioxide emissions are reduced by up to 19%. At the same time, hydrogen consumption is manageable and can be generated directly "on-demand" using a mobile HydraGEN electrolyzer. Due to the still large dimensions and high acquisition costs of the electrolyzer, the Company is currently focusing initially on industrial areas of application for its technology. One of these is the transportation industry. Trucks currently account for around 35% of global CO2 emissions. But the technology can also easily be used for large machines, such as in mining. Other conceivable areas of application are diesel-powered rail transport and shipping.
The dynaCERT technology acts as a cost reducer for companies in two ways: on the one hand, diesel fuel consumption is reduced, but more important is the reduction in CO2 emissions. These are transmitted to the responsible environmental authority directly at the plant through a proprietary telematics solution so that the Company can continuously receive credits on its CO2 certificates. Once a global CO2 certificate trading system has been launched, companies will be able to turn these certificates into cash by selling them. The specialists at dynaCERT have already proven that the technology works and is ready for use in various pilot projects. The sales focus is currently clearly on the North American transport industry and globally on active mining companies. But especially sectors and countries that do not have the means to immediately replace the current diesel technology with electric drives are likely to soon develop a keen interest in the bridge technology developed by dynaCERT.
To better address this growing demand, the Company yesterday announced Stephen Kukucha to its Board of Directors. Kukucha built a wealth of experience in his previous roles at Ballard Power Systems and as a director of the US Fuel Cell Council, among others, and as a co-founder of a company in the renewable energy sector. He will replace Elliot Strashin as a director in the future. As a loyal shareholder, Strashin will now focus on his duties as co-owner of a new dynaCERT dealer and will continue to be available to the Company as a consultant.
For us, the share, which the analysts at GBC attest a price potential of up to CAD 2.20, is thus definitely a buy candidate. The share price is currently hovering around CAD 0.42.
Plug Power - Exceeds psychologically important mark of USD 30
The US specialist in the production of fuel cells and electrolyzers seems to have finally ended its slide on the stock market. Last week, after a real rally, Plug Power finally left the valley of tears and exceeded the psychologically important mark of USD 30. Thus the way upward seems to be free again. To make up for the losses since the beginning of the year, the industry leader continues to step on the gas: the Company is currently actively looking for candidates for fruitful partnerships. With this in mind, a cooperation agreement was recently signed with the British catalyst manufacturer Johnson Matthey. The latter is to help further improve Plug Power's electrolyzer technology and establish a closed recycling loop for both companies' products.
Another partnership was recently agreed with the South Korean SK Group, already invested in Plug Power. Through a joint venture, a new factory for the production of fuel cells and electrolyzers is to be built in South Korea by 2023, thus accelerating the expansion in South Korea, Vietnam and China. CEO Andrew Marsh announced in a recent interview with Nikkei Asia that the Company expects Asia's share of Plug Power's total sales to rise to as much as one-third in the next four to five years.
For 2024, they are still targeting total sales of around USD 1.7 billion, up from USD 337 million in 2020. That might sound like an ambitious goal, but climate change can slowly no longer be postponed. In the coming years, demand for climate-neutral technologies will explode. By then, Plug Power will have established a unique market position. Analysts calculate an average price target of USD 49 for the share, which corresponds to a potential of around 60%.
Nel ASA - Share price recovery for hydrogen specialist
Investors in the hydrogen pioneers of Nel ASA have been used to suffering in recent months. Thus the former Shooting star from Norway had to accept a halving of its enterprise value at the stock exchange since the beginning of the year. At least since then, a positive newsflow could be created, which provided for an interim recovery of the share price. One of these news items was the signing of a letter of intent with the Spanish Iberdrola Group to construct a 230 MW electrolyzer to produce green fertilizer. Unfortunately, this bubble burst less than a week ago: at the last minute, Iberdrola broke away from the agreement and awarded the contract to competitor Cummins - a capacity of 500 MW is now to be expanded, with the option of expanding to 1 GW. The share price of Nel initially dropped after this disappointing news, but within the past week, these losses have been largely recovered. Even more, currently, the paper seems to stabilize around the NOK 18 mark. Because the Company will continue to operate at a loss until at least 2024, further price development appears limited.