30. August 2021 | 12:13 CET
First Hydrogen, Nel, Plug Power, FuelCell Energy - Is the next Hydrogen rally coming?
Hydrogen is repeatedly put forward as a solution for climate-neutral energy production. A strong distinction must be made for climate protection because only green hydrogen - produced from 100% renewable energy - is truly climate-friendly. Insufficient differentiation between hydrogen types has fatal consequences for the globe. In a recent study, scientists at the University of Standford in California prove that blue hydrogen, produced from natural gas in combination with the injection of the resulting CO2 through carbon capture-and-storage, actually has a significantly worse climate balance than the direct combustion of crude oil and natural gas. Significant methane gas emissions in production mainly cause this. Today we look at interesting values in the hydrogen environment.
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ISIN: PURE EXTRACTION CORP. | CA74622J1012 , NEL ASA NK-_20 | NO0010081235 , PLUG POWER INC. DL-_01 | US72919P2020 , FUELCELL ENERGY DL-_0001 | US35952H6018
"[...] 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.
First Hydrogen - The hydrogen-powered transporter is coming
How is the required hydrogen produced in large quantities? Methane is up to 80 times more climate-intensive than CO2. Since methane emissions cannot be prevented during hydrogen production with gas, any hydrogen production from natural gas is automatically harmful to the climate. The option of capturing the CO2 during electrolysis and depositing it in landfills also does nothing to help climate protection and fails technically to separate it cleanly. To really contribute to the environment, the production of H2 gas requires the exclusive use of green energy. Only then would the protagonists be able to demonstrate a real decarbonization strategy.
First Hydrogen is a new sector representative, but they have already taken on board H2 experts Ballard Power and AVL Powertrain for product development. The goal is to build a mid-sized delivery truck ("Sprinter") powered by H2. The TSX Venture Exchange approved the associated letters of intent in early August. Details of the deal include granting 3 million shares to parent Company Nova Light Capital Ltd, which is coordinating the collaborations. In return, Ballard will provide certain engineering services and integrate its hydrogen fuel cell module for First Hydrogen's prototype light commercial vehicle. AVL will design and execute the integration of all powertrain components, including vehicle components and control software development.
First Hydrogen's design and integration strategy provide significant market advantages and a low-cost base built on existing best-of-breed technologies and a proven chassis. Delivery services, in particular, are ideally suited to hydrogen technology, as they typically operate in a decentralized manner and can benefit from the long-range and do so with comparatively small tanks. The EU and UK target markets promote clean energy solutions through Invest EU's investment and grant programs, which are part of the EU strategy to boost a clean hydrogen economy in Europe.
Compared to electric vehicles with lithium-ion batteries, First Hydrogen promises much higher efficiency and ranges between 400 and 600 km. In addition, a fleet operator raises its ESG profile and generates additional revenue through CO2 certificates. First Hydrogen still trades under the symbol PURX and has issued 42.6 million shares to date. Based on CAD 1.80 per share, the market capitalization is currently just CAD 83.2 million. Compared to other hydrogen companies, this is only a fraction.
Nel ASA - A new chart attempt
A new attempt at stabilization. The share of the Norwegian hydrogen specialist Nel ASA fought its way back up from the low for the year in the course of the week. The title was temporarily able to make double-digit gains but fell back below EUR 1.40 at the end of the week. Thus, the security is quoted at an important mark, and the medium-term trend will be decided here.
Nel announced the good operational news via Twitter because the Company wants to expand its cooperation network further. In April, Nel had already signed a framework agreement with the consulting and engineering Company Wood. Wood recently secured a loan of around EUR 500 million from the British government. Wood intends to use the financing to exploit the opportunities presented by the energy transition. To this end, the British group plans to develop hydrogen projects comprising green, blue and bio-hydrogen. There is a good chance that partner Nel will also benefit from this.
The volume profile can be cited as a technical price driver. Such a volume peak is located in the price range between NOK 17 and NOK 18; with the breakout above the resistance at NOK 14.7, Nel generated a technical buy signal. Unfortunately, the line has been slightly undercut again per weekly closing price. Keep Nel ASA closely on the watchlist for now!
Plug Power versus FuelCell Energy - Where to jump now?
Another look at the US hydrogen experts Plug Power and FuelCell Energy: After the massive sell-off between February and mid-May, it has become much quieter around the Plug Power share. As a result of a strong rebound at the support zone at USD 19, there was temporary hope of a sustainable trend reversal, but this attempt failed at the 100-day line at USD 35.7 at the end of June. The share price promptly slipped further to USD 24. Since then, the stock has been moving within a range. It has formed on the upside at USD 27 and seems to be secured on the downside at USD 24. The coming weeks should provide a decision.
With the FuelCell Energy share, the bubble, which we had often discussed here, has now burst. At the beginning of the year, the prices were driven primarily by massive private investor purchases, who at that time hoped for much higher profits after a steep rise in the share price. Operationally, however, there have been no measurable improvements. In the meantime, the share is trading around 80% below its high for the year, and in chart terms, the share reached a further low of USD 5.75 last week; the high in February was USD 29.44. With sales of around USD 65 million, the price-to-sales ratio is still a utopian 30, so the stock is still floating in another galaxy.
Not all hydrogen is the same. After the collective decision favoring e-mobility, the H2 industry first has to find its application niche. Prominent players are still very highly valued, while smaller companies like First Hydrogen can make interesting concepts fly, even with a small budget - thanks to good cooperation agreements.