September 8th, 2022 | 12:16 CEST
First Hydrogen, Plug Power, Siemens Energy - Hydrogen wins ahead of wind power
The energy market continues to run hot these days. While gas prices have risen by 436% for new customers, suppliers of renewable energies, in particular, have made good profits on the European power exchanges. Now the EU Commission wants to put a stop to this and redistribute windfall profits. Reason enough for investors to look for new investments outside the EU. One candidate in the race for emission-free drive technology is First Hydrogen. The Company is putting environmentally friendly vans on the roads of Canada, North America and the EU. Also betting on hydrogen is major logistics company Amazon through a collaboration with Plug Power. And Siemens Energy is raising capital to revive its struggling wind energy subsidiary Gamesa.
time to read: 4 minutes
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Author:
Juliane Zielonka
ISIN:
First Hydrogen Corp. | CA32057N1042 , PLUG POWER INC. DL-_01 | US72919P2020 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0
Table of contents:
"[...] 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.
Author
Juliane Zielonka
Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
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First Hydrogen develops zero-emission vans without fossil fuels
How will we get around comfortably and climate-neutrally on the road in the future? One answer is offered by the young company First Hydrogen (ISIN CA32057N1042), based in Vancouver, Canada and London, UK. First Hydrogen specializes in the development and production of zero-emission vehicles. Together with two strong partners, AVL Powertrain and Ballard Power Systems Inc, the Company designs and builds hydrogen-powered fuel cell demonstration vehicles ("LCV"). The LCV utility van will travel approximately 500 km on one energy charge. In designing the van, the Company is taking care to make it suitable for international use. Certifications for the UK, Europe and North America are an integral part of the model.
Given the worsening energy crisis, First Hydrogen is a good opportunity for investors to invest in hydrogen mobility (LCV Utility Van) without legacy fossil fuel or previous EV investments. It is also much needed, as European energy trading is burdened by margin calls of at least USD 1.5 trillion. As a result, governments are under pressure to provide more liquidity buffers, according to Norway's Equinor ASA. The situation poses a major risk to energy supplies in Europe and could lead to shortages.
A margin call is a notice from a broker that the investor must deposit cash, transfer eligible securities or sell stocks/securities to raise a certain amount of money within a few days. Finland is warning of what it calls a "Lehman Brothers" moment, in which electric utilities face sudden liquidity shortages. It could lead to significant problems for the supply of the population.
This makes it all the more exciting to bet directly on an innovative technology like First Hydrogen. To get a personal impression of First Hydrogen's management, investors will have the opportunity at the 4th International Investment Forum on September 27 to ask CEO Robert Campbell specific questions.
Plug Power soaring thanks to deal with Amazon
It is so simple: you sit in your home office, pick something out at the Amazon department store, maybe you are even a Prime customer and take delivery of the goods the very next day. Amazon is spending USD 1 billion on innovations in the supply chain, fulfillment and logistics to further improve the customer and employee experience.
The Seattle-based company and Plug Power (ISIN US72919P2020) are partnering for this innovative lead. As of 2025, Plug will supply Amazon with 10,950 tons of green hydrogen annually. That is equivalent to the demand for 30,000 forklifts or 800 long-haul trucks. Plug also granted Amazon a warrant to purchase up to 16 million shares at an exercise price of USD 22.9841 for the first 9 million shares. Amazon has agreed to spend USD 2.1 billion on Plug's products over the seven-year term of the agreement to make the warrants fully exercisable.
The green hydrogen supply agreement is a continuation of Amazon and Plug's successful collaboration to expand green hydrogen applications further. Since 2016, Plug has helped Amazon deploy over 15,000 fuel cells to replace batteries in forklifts across 70 distribution centers. This successful partnership will now be further expanded through the green hydrogen supply agreements, ensuring that Amazon can continue its operations in a sustainable manner.
Siemens Energy raises capital for wind power refurbishment
As of September 19, Siemens Energy (ISIN DE000ENER6Y0) is back in the DAX. Siemens Energy AG is an energy company formed by the spin-off of the former gas and power division of the Siemens Group and includes a 67% stake in Siemens Gamesa. Christian Bruch is chairman of the board, and former Siemens AG CEO Joe Kaeser is chairman of the supervisory board.
Siemens Energy plans to launch the planned acquisition of its Gamesa wind power subsidiary through a capital increase. Thus, the Company plans to issue a subordinated mandatory convertible bond with a total nominal amount of about EUR 1 billion, Siemens Energy recently announced.
The sale of Gamesa to the Chinese group Envision should help solve the problems at Siemens Energy. The Spanish subsidiary is to be restructured and integrated into the group. By selling the Company, Siemens Energy hopes to improve its financial situation and make up for disappointing figures in the past.
The bond will be exchanged for Siemens Energy shares in three years, in mid-September 2025, and will thus count as equity for the rating agencies.
All of Europe is exposed to the upheavals in the energy market. The EU Commission is planning to introduce a price cap for electricity and redistribute windfall profits. EU Commission President Ursula von der Leyen announced that the Commission wants to collect too much profit from energy companies in order to relieve consumers. That affects RE companies as well as gas and coal-fired power providers. Investors should consider to what extent an investment seems profitable in the current situation in the euro area. First Hydrogen offers an alternative, thanks to its headquarters in Canada and the UK. The US company Plug Power has also caught the eye of investors again due to the cooperation. Investors with a DAX focus can look forward to a return of Siemens Energy.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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