22. December 2020 | 09:37 CET
Enapter AG, Plug Power, Nel ASA - Get into hydrogen now!
At the top of the scale of stock market favorites are hydrogen stocks. We are dealing with an industry of the future - the proponents of H-technology want to offer a revolutionary energy generation and storage that is a real alternative to the lithium-ion battery. According to current overall ecological balance calculations, H-technology performs significantly better than the very questionable production of highly toxic metal-based energy storage. In a few years, research could be ready to define hydrogen as another standard in mobility and energy production. The German government has already approved funding of EUR 9 billion for green hydrogen.
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ISIN: DE000A255G02 , US72919P2020 , NO0010081235
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Enapter AG - Decentralized energy storage in demand
Enapter AG (formerly S&O Beteiligungen) only recently saw the limelight of the stock exchange. Slipped into an already listed shell, the reverse IPO Enapter AG presents it as a dynamic member of the highly celebrated hydrogen stocks on the price list. When the new stock was first announced, the old shell S&O went up rapidly. However, since the empty shell did not provide cash, a cash capital increase of about EUR 7 million was carried out in recent months and the operational business of Enapter was brought in. The shares are now freely tradable, but still significantly price-sensitive due to the low free float.
Not so the story of Enapter itself. The technology Company currently still has its operating units located in Pisa, Italy, and will soon also have them in Saerbeck, Germany. Pisa is home to the research units that drive the core technology of anion exchange membrane (AEM) electrolysis. There is also already a marketable device with the abbreviation EM 2.1, which enables and controls decentralized energy generation. Those who think in terms of hydrogen should mentally separate themselves from conventional energy production on a large scale. Hydrogen is an on-site technology that makes it possible, for example, to use the green energy from sun & wind in Africa to operate an electrolysis unit for hydrogen production. The hydrogen produced in this way acts as an energy storage unit, which in turn is available again later for all consumers in a village, e.g. at night. The energy storage problem is thus elegantly, and environmentally friendly solved - locally, quickly and efficiently.
Today, hydrogen is used as an energy storage medium in the chemical industry, in research and for mobility solutions. In most areas of application, today's predominant grey hydrogen could be replaced by green hydrogen from renewable energies. This growing demand is met by the flexible AEM electrolyzers. Enapter is thus an enabler of a new energy storage generation whose purpose is becoming increasingly transparent in the wake of the critical e-mobility debate. The Enapter share is an investment opportunity in this future topic that is just rolling off the launch pad. Enapter is, therefore, in contrast to the over-speculated peer group, a clear long-term buy with strong growth prospects.
Plug Power Inc. - US economic stimulus package ahead
An American counterpart in the industry is Plug Power, a manufacturer of fuel cells. The Company develops and manufactures fuel cells for applications in electromobility, the operation of industrial trucks and stationary use in emergency power systems. Plug Power also supplies hydrogen to its customers, designs hydrogen storage systems and hydrogen dispensing systems. Plug Power was founded in 1997 as a joint venture between the utility DTE Energy and the instrumentation manufacturer, Mechanical Technology Inc. The Company has been publicly traded since 1999.
There is a partial resemblance to Enapter; the Americans were already able to generate USD 290 million in sales in 2020 with their technology. The new green package of the US government could once again bring a breath of fresh air. As part of a total USD 900 billion aid package to the population and the beleaguered economy, the US Congress also wants to initiate an extension of tax breaks for wind and solar energy. Some of that will undoubtedly go to hydrogen research.
The estimated figures for next year are anything but euphoric, as there are still too few standout applications for widespread use of the fledgling technology. Although sales will reach around USD 400 million, the operating break-even point is not expected to be reached until well into 2022. For the shareholder, it is therefore still a matter of holding out for a few more years; one may assume that the future is already very much reflected in today's valuation of USD 13.9 billion.
Nel ASA - Money from the EIB for Everfuel
The Danish hydrogen Company Everfuel, in which Nel from Norway has a stake, is still in an early stage of development. As a result, Everfuel relies heavily on external backers. Now the Company has received backing from the European Investment Bank (EIB), which has granted the Company a EUR 20.7 million loan. Funding is being provided for the development of hydrogen production and distribution infrastructure for public transport, primarily in Scandinavia.
The project is funded under the Mobility of the Future program, which is supported by the Connecting Europe Facility (CEF) and the European Commission's NER 300 program, a joint pot for forward-looking research. Partnerships with strong European institutions play a crucial role in making green hydrogen commercially available for zero-emission mobility. Everfuel will use hydrogen from existing and new sources to supply refuelling stations for buses and heavy-duty vehicles, initially in Denmark and later across Europe.
Whether that will help Nel's stock, which is entirely out of band, is questionable, as the chart took a significant hit from the top yesterday. Opening at EUR 2.39, it went down to EUR 2.26. A possible harbinger of a larger consolidation?