July 5th, 2023 | 07:25 CEST
Hydrogen - the best is yet to come: Siemens Energy, Plug Power, RegenX Tech
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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
Plug Power and Co. are moving to Duisburg
When it comes to heating in the future, other technologies, such as heat pumps and district heating are likely to outstrip gas boilers that can also burn hydrogen. This is the assumption of Jan Rosenow, researcher at Environmental Change Institute of the British University of Oxford. In an article in Focus magazine, the scientist sees the low availability of green hydrogen as the main problem. By 2030, the German government wants to create capacities for 5 gigawatts of green hydrogen annually. According to Rosenow, this is just enough for 2% of the building stock. In addition, hydrogen is firmly scheduled as an energy source for industry. The steel industry, in particular, but also the chemical industry, is dependent on hydrogen. Ship engines and trucks are also likely to run predominantly on hydrogen. Does this make hydrogen a pipe dream?
It appears that hydrogen is a promising energy source for domestic heating. When it comes to applications in industry, however, the situation is quite different. The Ruhr region, and Duisburg in particular, is to become a hydrogen hub. ThyssenKrupp inaugurated a hydrogen pipeline there at the end of last year. The Norwegian company Hydrogen Pro recently announced ambitious plans for the Duisburg site - which is no surprise given its proximity to numerous industrial consumers. In 2022, Plug Power also opened a hydrogen center in the region. By the end of 2025, Plug Power plans to produce 500 t of green hydrogen at the Duisburg Freeport and thus serve customers throughout Europe.
Siemens Energy is well positioned
Siemens Energy, which has recently come under fire for problems at its Spanish wind power subsidiary Gamesa, is also successfully investing in hydrogen. The Company plans to manufacture electrolysers at its Berlin site. Last year, Siemens Energy joined forces with the French company Air Liquide. Even though Siemens Energy is currently considered a problem child, investors should make a note of the stock. If heating with hydrogen is not a good idea, then Siemens Energy could indirectly profit from it as a partner to industry and as a provider of district heating solutions. The entry into the photovoltaic business is not off the table either. Here, Siemens Energy could become a local partner of Chinese investors, for example, who bring along the relevant photovoltaic know-how and could be dependent on local partners due to regulatory requirements for investments within the EU.
RegenX makes supply chains for electrolysers sustainable
An indirect beneficiary of the hydrogen boom could also become the Canadian company RegenX Tech. The Company is a specialist in recycling catalytic converters. In addition to catalytic converters from cars, RegenX can also process equipment from industry, creating a high level of efficiency. Among other things, catalytic converters contain platinum. It is believed that around 84% of the world's platinum supply is tied up in catalytic converters. RegenX wants to recycle this platinum and make it usable. Many green hydrogen production plants also contain platinum. Companies in this sector could make their supply chains sustainable by choosing Regenx as a supplier and would thus have good arguments for their products.
RegenX manages to recycle about 90% of the platinum from a catalyst through its own process. RegenX can expand corresponding processing plants on a modular basis and, according to initial economic calculations, assumes that investments will be recouped after less than one year of production. With this business model, RegenX wants to become bankable as quickly as possible and thus enable growth from outside capital. Since recycling saves quite a bit in emissions compared to platinum mining, Regenx is also looking into issuing CO2 certificates. The Company believes these could become a second source of revenue. To ensure that the supply of new catalysts does not dry up, the Company has already entered into a cooperation with the US company Davis Recycling Inc.. The share is a flawless penny stock and must be considered speculative due to the Company's stage. In recent months, however, a comeback has been emerging. RegenX's business model is exciting.
The examples of Regenx and Siemens Energy show that investors do not always have to rely on established hydrogen companies like Plug Power. If, for example, the heating dream with hydrogen bursts, other technologies or use cases will profit. Especially the recycling of important raw materials for electrolysers can be an exciting area for investors. RegenX is already moving forward with the first recycling plant for platinum in the state of Tennessee.
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