June 22nd, 2022 | 14:01 CEST
Erin Ventures, Plug Power, Ballard Power - Unknown compounds with surprise potential!
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"[...] 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
Erin Ventures - Pure play: Boron
More than ten years ago, the European Commission classified materials with great economic importance within the EU and those with a high supply risk as critical raw materials. Today, this list, which includes rare earths or raw materials such as lithium and tungsten, has grown to 30. Remarkably, several names are unknown to the general public but still have great importance. Boron is such an example.
Due to its unique properties, boron has a wide range of applications. A fundamental distinction must be made between elemental boron and boron compounds, of which borax, in particular, is considered the most economically important compound. Boron is characterized, among other things, by very high strength. In the glass industry, borosilicate leads to the strength of glass. End products are smartphone displays, LCD screens and solar panels.
Globally, Turkey has the greatest weight as a producer. Other major deposits are located in California and Kazakhstan. Erin Ventures plans to join the ranks of producers in the next few years with its Serbian Piskanja Boron project. The Canadians plan to release an updated resource estimate and an updated preliminary economic assessment (PEA) shortly. In the past, an indicated resource of 7.8 million tons (31% boron trioxide B2O3) and an inferred resource of 3.4 million tons at 28.6% B2O3 were measured.
So, with demand for boron outstripping supply and the fields of application for the critical raw material increasing, the big picture is right. With a stock market valuation of only about CAD 10 million, the stock does not reflect the potential in any way. Good newsflow will certainly stimulate the share price sooner or later.
Plug Power - To supply Europe from Belgium
The leading provider of comprehensive turnkey hydrogen fuel cell solutions currently brings USD 9.2 billion to the stock exchange scales. The US company created the first commercially viable market for hydrogen fuel cell technology and has commissioned more than 50,000 fuel cell systems for electric mobility.
Now the major buyer of liquid hydrogen is turning up the heat in North America and Europe. As recently announced, Plug Power will build a green hydrogen plant with a capacity of 35 tons per day in the Belgian port of Antwerp-Bruges, one of the largest ports in Europe. A 30-year concession agreement has been signed for this purpose.
The construction of a 100-megawatt plant with its electrolyzer and liquefaction technology is planned, which will enable the production of up to 12,500t of liquid and gaseous green hydrogen annually for the European market. The first production is expected in late 2024, with commercial startup planned in 2025.
Ballard Power - Patience is a virtue
The share price of the Canadian fuel cell pioneer has lost ground in the last 12 months, losing about two-thirds of its value. Still operating in the red, the Company's recently released first-quarter numbers showed a loss of USD 0.06 per share.
Due to its global footprint, Ballard could benefit in the coming years from the Defense Production Act (DPA) recently passed in the US. With this measure, US President Biden wants to promote specific technologies for national energy production. Overall, analysts are still optimistic about the stock and believe it has an average upside potential of 20%.
The energy transition offers investors many attractive investment opportunities. Hydrogen offers excellent long-term potential. Plug Power is a leading supplier in this area and, in many respects, performs better than Ballard Power. Still completely undiscovered is the stock of Canadian Erin Ventures. With its promising boron project and the upcoming release of profitability data, the stock has great potential.
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