October 5th, 2022 | 12:03 CEST
Hydrogen shares step on the gas again: Nel ASA, Plug Power and First Hydrogen profit
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"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
First Hydrogen: Filling station network and European expansion
Things are going well at First Hydrogen: The stock has performed strongly in recent months, and the healthy consolidation already seems to be over. And more importantly, the Canadians are also going full throttle operationally. Their own H2 filling station network in North America is feasible. Now that the EU has agreed on a concrete strategy to promote renewable energies, First Hydrogen is also expanding in Europe. The plan is to recruit fleet operators with light commercial vehicles for test deployments. Testing in Germany and France is scheduled to begin in early 2024. In addition, First Hydrogen is examining the possibilities for the production of green hydrogen. Because the EU's goals are ambitious: by 2030, 20 million tons of green hydrogen should be available. Half of this is to be produced within the EU and the rest imported.
Nicholas Wrigley, Chairman of First Hydrogen UK, says: "The strategic framework and the European Union's commitment to hydrogen is now in place and represents a great opportunity for First Hydrogen's business model, which offers a total solution by providing fleet vehicles and hydrogen as a service." In the UK, the first demonstration vehicles are already on the road and will be tested by fleet operators in the coming months. This will facilitate expansion into the EU. First Hydrogen is convinced that the vans are industry leaders in terms of range, rapid refueling and performance. The Company also reported on its excellent prospects at the 4th IIF virtual investor conference last week. The content is also available here on youtube.
The experts from researchanalyst.com also confirmed further upside potential for First Hydrogen in their most recent study. Compared to the competition, the stock market valuation of the Canadians is still far too low, despite the recent strong performance. They also point to the Company's "Hydrogen-as-a-Service" strategy. As part of this, First Hydrogen could build its own H2 refueling station network in North America. Read more here.
Nel wins US facility as partner
Among the much more highly valued peer group is Nel. Despite halving its share price this year, the Norwegian company still tips the scales at around EUR 2 billion. Weak growth, high losses and a lack of major orders are weighing on the share. At least Nel can still boast well-known sponsors. In the US, the US Department of Defense is providing financial support for the development of advanced PEM electrolyzers to enable low-cost hydrogen storage and robust applications. The USD 5.6 million grant is intended to accelerate research.
Kathy Ayers, vice president of research and development at Nel, said, "We are very pleased to receive this funding from the Department of Defense. This project will be an important enabler for large-scale renewable hydrogen production for industrial applications using PEM technology." The project is expected to run for 19 months. On the back of the news, Nel shares gained over 10% in German trading yesterday, heralding a breakout attempt from the downtrend.
ITM Power and Plug Power gain
In the context of the friendly mood - and without company-specific news - the shares of ITM Power and Plug Power also made significant gains. ITM Power climbed by more than 10% to EUR 1.33. However, the value has also more than tripled since May. The all-time high from November of last year was over EUR 6. After disappointing figures and a change in management, Berenberg had recently reduced the price target to EUR 1.51. Plug Power, the industry leader, gained more than 5% yesterday. Investors are also waiting for major orders for faster operational growth from the US company, valued at over USD 13 billion. Most recently, the hydrogen pure play, together with partner Lhyfe, commissioned the first hydrogen production plant on a floating platform. The 1 MW plant is located directly near an offshore wind farm and can thus produce green hydrogen without detours. The two partners plan to jointly build green hydrogen production plants across Europe. The production capacity is expected to reach 300 MW by 2025. They also want to develop a 1-GW production facility together.
Hydrogen will be a central component of the world's energy supply in the coming decade. Companies are positioning themselves for this. First Hydrogen is one of the more undervalued companies. Nel and Plug Power must finally break even on the sales side.
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