Hydrogen abc - Everything about opportunities and risks: ThyssenKrupp, Daimler Truck, First Hydrogen

ThyssenKrupp: Nucera IPO promising

With participating banks talking of brisk demand at the start of the subscription phase for Nucera shares, the IPO of ThyssenKrupp's hydrogen subsidiary could be a complete success. The steel group does not want to relinquish its majority stake in Nucera and will retain 50.1% even after the IPO. In addition, the Saudi sovereign wealth fund PIM and the BNP Paribas Energy Transition Fund are to get involved with mid-single-digit stakes. Nucera's IPO is especially important for ThyssenKrupp - after all, its steel business relies on green energy that is also cheap. But the hydrogen turnaround is not a sprint, but rather a marathon, as Jens Asmuth, Managing Director of Ja-Gastechnology GmbH from the Hanover area, finds: "It may still take years until green hydrogen is really cheap. Until then, we also need blue hydrogen." Asmuth wants to advance the transformation with his company, especially with the help of mobile solutions for electrolysis and hydrogen filling.

Platinum and PFAS: Hydrogen is not a foregone conclusion

The fresh funds from the capital increase could also come at the right time for Nucera. Industry experts, such as Asmuth, repeatedly emphasize the importance of already being positioned in an emerging market. Many companies that entered the market late will not be able to gain a foothold", Jens Asmuth of JA-Gasttechnology summarises the situation. The hydrogen technology itself is still unclear. Gurjant Randhawa, CEO of Cipher Neutron Inc., clarifies: "Classical PEM electrolysers usually require large amounts of platinum and cannot do without the forever chemicals PFAS. Analysts expect demand for platinum to increase by a factor of 240 by 2050. PFAS are harmful to health and are to be banned in many regions of the world. Electrolysis solutions that do not use platinum and PFAS reduce risks associated with supply chains and ESG, offering major benefits." Hydrogen investors should, therefore, closely examine the technologies from Nucera and Co. and assess them for their future viability.

First Hydrogen: Crucial phase for commercial hydrogen vehicles

Fundamentally, however, the industry is on the upswing. Legislators have also contributed to this by creating framework conditions for the hydrogen industry in addition to subsidies: "Since the Inflation Reduction Act in the US, other national economies, such as the EU and Canada, have introduced measures for the climate-neutral conversion of their economies. These government investment packages give the hydrogen industry planning security and create suitable framework conditions," states Robert Campbell, CEO Energy Division at First Hydrogen Corp. As an example, the manager, whose company wants to promote light commercial vehicles with fuel cells and provide for hydrogen infrastructure, cites the latest EU regulation, which, among other things, provides for minimum standards for the supply of hydrogen filling stations.

These and similar regulations come at the right time for the young company First Hydrogen. The Canadians recently delivered the first vehicle to the British utility company SSE Plc. Joining them is the Aggregated Hydrogen Freight Consortium (AHFC), an organization of fleet operators open to the new technology and 16 of whose members are also interested in First Hydrogen's solutions. Almost at the same time, First Hydrogen announced the conclusion of contracts with the Canadian city of Shawinigan for purchase options for properties. First Hydrogen plans to create a production capacity of up to 35 MW of green hydrogen annually in the city to power its fleet of vehicles. The global light-duty vehicle market is expected to reach USD 752 billion by 2030 and grow at a compound annual growth rate of 5.1% until then. In contrast to heavy-duty transport, in which large suppliers such as Daimler Truck or even Nikola have already positioned themselves, the market for light commercial vehicles used by logistics companies or delivery services could be an exciting niche. The research portal researchanalyst.com is also positive about the latest developments at First Hydrogen, writing with regard to the test run with the utility company SSE Plc: "If results again exceed expectations, the conversion of these test companies into potential customers for the future becomes increasingly likely."

The hydrogen market is picking up speed - as evidenced by the IPO of ThyssenKrupp subsidiary Nucera, among others, or the recent progress of First Hydrogen, which aims to go into series production in the long term with a production capacity of 25,000 hydrogen commercial vehicles. Although it is likely to take some time until then, investors should evaluate market potentials and technologies around hydrogen today to identify companies with prospects in the still unclear market for hydrogen. The supposed top dogs do not always come out on top.