Exciting developments at First Hydrogen, Plug Power, and thyssenkrupp nucera! What they mean for shareholders

First Hydrogen – Gamechanger potential

The Canadian company specializes in zero-emission vehicles and the production and distribution of green hydrogen. The hydrogen-powered light fuel cell commercial vehicles (FCEVs) have been successfully designed and tested by fleet operators in the United Kingdom.

However, the company's vision is much bigger and could lead to a massive revaluation of the stock. The goal is to combine stable and clean energy from small modular reactors (SMRs) with electrolysis to generate green energy, including green hydrogen. This is intended to supply power-hungry data centers and AI infrastructures in particular, as well as companies' hydrogen-powered fuel cell vehicles.

The Canadians are striving to establish a zero-emission ecosystem. The starting point and core of this is a pioneering research project with the University of Alberta. Together with the Canadian educational institution, key parameters are being addressed. The focus is on the development of reactor fuel materials and the design and optimization of SMRs. Based on the research results of the first phase, the next research and development activities will be initiated.

The ambitious goal is to identify non-radioactive alternative fuel mixtures made from molten salt that have the properties of uranium-containing fuel salts but offer greater efficiency and safety. That would truly be a gamechanger.

SMRs are predicted to have a bright future. These small nuclear reactors can be built in a modular fashion and pre-produced in series. SMRs help to provide low-carbon energy more quickly and scalably, and also include new applications such as hydrogen production. The company is valued at around CAD 30 million at a share price of approximately CAD 0.38. Further news on SMR initiatives is likely to gradually boost the share price.

Plug Power – Huge dilution for shareholders vs success stories from Europe

The US energy and technology company Plug Power focuses on hydrogen and fuel cell technologies and has created an impressive ecosystem. The share price has been on a downward trend in recent months. Most recently, an important financing issue was raised that caused heated debate. Ultimately, at the most recent shareholders' meeting, the company received the desired approval to significantly expand its authorized capital.

This means massive dilution for existing shareholders. The share price had already priced in this change. The shares are currently trading at around USD 1.86, and many analysts are setting a price target of USD 2.

The disputes are overshadowing the successful business development in Europe. In Rotterdam, Plug Power has completed the first filling of a 32 km hydrogen pipeline. This demonstrates the US company's ability to handle complex infrastructure projects on an industrial scale. At the same time, work on a 100 MW electrolysis plant in Portugal has been completed. In southern Europe, up to 15,000 tons of green hydrogen are to be produced per year in the future.

thyssenkrupp nucera – Poor start to the year

In the summer of 2023, thyssenkrupp nucera went public at a price of EUR 20. Today, the share is trading at around EUR 9.40. Ultimately, the planned growth did not develop as quickly as hoped. The group is currently valued at EUR 1.2 billion. Analysts assign the shares a fair value of EUR 11.20 on average.

thyssenkrupp nucera is a provider of electrolysis technology, which includes the engineering, procurement, and construction of electrochemical plants. It offers solutions for green hydrogen, chlor-alkali solutions, and hydrochloric acid solutions. The company recently presented its figures for the first quarter, and with a 44% decline in revenue to EUR 147 million, the group started the new fiscal year much worse than forecast. In operational terms, it even slipped into the red with an EBIT of EUR –4 million. For the current fiscal year, the group is forecasting revenue of EUR 500 to 600 million and an EBIT of between EUR –30 million and EUR 0.

"Even though the market environment remains challenging, we are seeing increasingly positive market momentum, especially in the area of green hydrogen," said CEO Werner Ponikwar, summarizing the situation.

Plug Power is currently facing shareholder concerns due to significant dilution, which is overshadowing recent operational progress in Europe. thyssenkrupp nucera shareholders will also have to be patient once again while working through a challenging market environment. First Hydrogen's concept is visionary. News flow from the current SMR-related initiatives will likely have a positive impact on the share price. Should a breakthrough occur, a complete revaluation of the company should be on the cards.