Hope for German industry: Amazon, Cameco, and First Hydrogen

First Hydrogen enters the nuclear power market

First Hydrogen was previously regarded as a solution provider in the field of hydrogen. Test runs with hydrogen-powered light commercial vehicles were already underway with large fleet operators such as Amazon. Then, in mid-March, came the bombshell: First Hydrogen is establishing a business unit for nuclear power and plans to use small modular reactors (SMRs) to produce green hydrogen. This makes particular sense during periods when the sun and wind are not providing energy. Market researchers at IDTechEx expect that more and more SMRs will be installed in response to the climate crisis. Analysts estimate that the global market for SMRs will reach a volume of USD 72.4 billion by 2033 and USD 295 billion by 2043, representing an average annual growth rate of 30%.

According to First Hydrogen, the advantages of SMRs include their low-cost manufacture in factories, from where they are delivered to their place of use, their higher safety compared to conventional nuclear power plants, and their modular design – young companies and start-ups can easily expand the power plants by purchasing additional mini-plants. Although the first nuclear power projects are still pending, First Hydrogen's involvement in the nuclear energy sector is likely to be viewed with interest by companies in the industry. Like First Hydrogen, uranium specialist Cameco is based in Canada and sees SMRs as a key growth area for the future. "We aim to be a preferred fuel supplier for the emerging market for SMRs and advanced reactors," said Cameco CEO Tim Gitzel back in 2021.

Even the EU is promoting research into mini-reactors

It is still unclear when mini reactors will make their breakthrough. The technology has been around for several years in China and Russia; for example, Russia has been operating the floating nuclear power plant "Akademik Lomonosov" since 2020. Currently, 80 additional SMR reactors are in the planning stages, including in the US, Canada, the UK, Japan, and South Korea. The technology is expected to be rolled out on a broad scale by the end of the decade. Even the European Commission is supporting research in this area and launched the European SMR Industrial Alliance in February 2024.

Amazon, Cameco, First Hydrogen? Hydrogen brings different sectors together

With the establishment of its own business unit for nuclear energy, First Hydrogen is positioning itself in a growth field. A few years ago, it was believed that renewable energy sources were an either/or proposition, but today, we know that industry, in particular, is relying on an energy mix and is putting together its own individual energy sources. In this context, modular nuclear reactors are an option that is being discussed more openly in many industrialized countries around the world than in Germany.

The role of hydrogen as an energy storage medium is also increasingly becoming a topic of discussion. Hydrogen storage enables seasonal bridging of dark periods when little wind and solar power is generated. It thus offers a solution to the volatility of renewable energies. Huge hydrogen storage facilities could be used in disused mines. In addition, hydrogen connects the electricity, heating, and energy sectors, promoting cross-sector solutions and synergies. The best example is First Hydrogen, whose technology has points of contact with companies such as Amazon and Cameco.

First Hydrogen with German subsidiary

Looking at the shares of all three companies, a mixed picture emerges: While Amazon and Cameco have lost ground over the past four weeks, First Hydrogen's stock has gained more than 20%. Investors appreciate the new business area and see long-term prospects. However, it will take some time for the ambitious plans to materialize. For First Hydrogen, the key now is to establish partnerships with industry. To this end, the Company opened a branch in Germany this year.