05. November 2021 | 12:40 CET
First Hydrogen, Nel, Plug Power, Ballard - Glasgow UN Climate Change Conference ups the ante!
In its hydrogen strategy, the EU plans to expand electrolysis capacities to 40 GW for "green hydrogen" by 2030. Germany contributes one-eighth of the EU-wide total capacity within a national share and is a major driver of innovation due to its technological expertise. Green hydrogen refers to the use of electricity for electrolysis from exclusively renewable energies and is, therefore, a completely CO2-free hydrogen production. As a result, hydrogen technology is in the spotlight for climate-neutral energy production and reducing emissions. We get an overview of the listed protagonists.
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ISIN: First Hydrogen Corp. | CA32057N1042 , NEL ASA NK-_20 | NO0010081235 , PLUG POWER INC. DL-_01 | US72919P2020 , BALLARD PWR SYS | CA0585861085
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
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.
Nel ASA - Who would have thought it?
Nel ASA set a marker with its third-quarter figures, which the investment community took note of favorably. Before the figures, the hydrogen specialist struggled with the EUR 1.30 mark - then it went through the roof. Now the price has worked its way into an interesting area; it has set its sights on the EUR 2 mark again. A 50% premium in just four weeks is quite something, but the all-time high of EUR 3.40 is still almost 80% away.
There are many reasons for the good mood. On the one hand, the current UN climate conference has brought the fight against climate change back into focus. The hydrogen sector, in particular, is benefiting from this. Shares with links to e-mobility were also unabatedly on the buy lists. On the other hand, GreenTech stocks had been sold off over the last few months, but now the rebound is underway. However, as the news situation on operational progress is still very thin, investors have to focus more on market technology, especially in the case of hydrogen investments.
The trend at Nel is currently intact, and the momentum and sentiment appear extremely bullish; therefore, a short-term release of some air is entirely possible. Targets for a setback could be down to the EUR 1.70 region; they would be quite harmless from today's perspective. However, the share price should not fall significantly below this level. Investors can use this area as an opportunity to reconsider their long position. Those who have the nerve for this renewed rally should, of course, ride the wave as long as they can. It is hard to believe that the entire industry is rallying again so quickly.
First Hydrogen - The design for the H2 transporter is in place
Time is of the essence: From 2025, stricter emission targets issued by the EU will apply, which conventional combustion engines are currently unable to meet. As part of the specified decarbonization targets, automakers are focusing globally on electric battery drive. However, electromobility is unsuitable for freight transport due to its still far too short range and long charging time.
The fuel cell can play out its advantages here. First Hydrogen is an innovative sector representative, entering product development with strong partners such as Ballard Power and AVL Powertrain. The first commercial result is an H2-powered Sprinter, a small van with a payload typically up to 3 tons. These short-haul vehicles are mainly used between cities and within towns for delivery purposes. Hydrogen propulsion can show its strength here because H2 is readily available in larger cities, but it becomes more difficult overland.
For the UK market, First Hydrogen has now been able to start manufacturing the first commercial prototypes. Partners are Ballard and AVL Powertrain, with the first demonstration scheduled for the third quarter of 2022. With the Ballard FCgen-LCS fuel cell, the vehicle already achieves a range of more than 500 km. With its progress, First Hydrogen is now on track to enter the commercial world of H2 propulsion as early as 2022. The experience gained from the first demonstrations will then give engineers important clues as to which parameters in H2 mobility still need to be implemented technically.
In addition to producing vans, First Hydrogen is also working on high-sensitivity carbon dioxide extraction systems that allow it to operate apparatus in remote locations where electrical grids are unavailable, or power supplies are unstable. To this end, the CO2 extraction system can be remotely monitored and supported by the Company's fully integrated operating system.
First Hydrogen is now listed under the abbreviation FHYD and is heavily traded in Germany and Canada. Investor interest in H2 shares is currently unbroken, and recently the industry trends have again been very strongly upward. With a market cap of only about CAD 88 million, there is still plenty of room for FHYD to catch up to its ambitious sector valuation.
Ballard versus Plug Power - The UN Climate Change Conference pushes the whole industry
Ballard Power is a Canadian company that has come a long way. In 1979, Ballard Research Inc. was founded by Geoffrey Ballard and renamed to its current name some time after. Ballard has been developing fuel cell technology since 1983. At the beginning of the millennium, the share price once reached EUR 150. Today, the Company is listed at around EUR 16; it has developed its sales from CAD 0 to 127 million during this time. As in the entire industry, the price rose by about 50% in recent weeks. The chart has now stopped at the EUR 16 mark and currently shows support at EUR 14. Long-positioned investors can set a stop here, which can be changed further upwards without any problems if the rally continues.
After the massive sell-off between February and mid-May, it has become much quieter around the Plug Power share until October. As in the first downward wave in May, in September, there was a shift in the shaft at EUR 19, and the price turned sharply upwards. At the beginning of the week, the price climbed to the EUR 38 mark, which is a clear doubling in just 4 weeks. Questions about fundamental reasons are not very appropriate here. Ultimately, the good outlook of Nel has created a particular radiating effect on the entire industry.
Politically, there has also been some news recently at the UN Climate Change Conference: Friedrichshafen-based Rolls-Royce Power Systems presented its new MTU fuel cell system for the first time. As the Company writes in a press release, the system will be used in series production as early as 2025. The aim is to enable a CO2-free energy supply. Things are moving forward!
So the sails are fully set again for the entire industry. Those who are not afraid of price-turnover ratios of up to a factor of 100 can invest blithely. But neither the entry nor the exit bells are rung, which we know from the last movement. Therefore, the market technique should always be followed closely.
The UN Climate Conference is like water on the mills of the hydrogen protagonists. However, the industry still has a lot of convincing to do because of the current dominance of electromobility. The big players have already come a long way, but the small and innovative First Hydrogen could still make it big in the current political climate.