Close menu




October 6th, 2022 | 12:44 CEST

Hydrogen - the fuel for transportation and logistics stocks: Plug Power, dynaCERT, ThyssenKrupp, and Daimler Truck with imagination

  • Hydrogen
  • Logistics
  • Electromobility
Photo credits: pixabay.com

Hydrogen technology finally seems to be gaining momentum on the industrial side. Time and again, companies such as Plug Power or Nel ASA are reporting various orders from the private and public sectors. Unfortunately, conventional diesel drives still dominate the transportation and logistics sector. However, the exhibitors at the IAA Transportation in Hannover have quite different goals: They want to lead truck transport into a climate-neutral logistics era. This requires a willingness to invest and appropriate technological support. Fleet operators, meanwhile, are already shuffling their feet and waiting for the producers to give the green light. There are great opportunities for investors to be involved right from the start.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: DYNACERT INC. | CA26780A1084 , PLUG POWER INC. DL-_01 | US72919P2020 , THYSSENKRUPP AG O.N. | DE0007500001 , Daimler Truck Holding AG | DE000DTR0013

Table of contents:


    Plug Power - An opportunity again at a reduced level

    Hydrogen technology now seems to be gaining momentum for energizing our climate change efforts. Joe Biden has had to negotiate long and hard, but as of late summer, his Climate & Health Bill is in the history books at over USD 430 billion. Biden's original plans for climate protection and social reforms were among the core projects of his term in office. As a result, the enacted package is one of the most comprehensive US investments to combat climate change since Barrick Obama defined the initial guardrails.

    The climate protection measures included are intended to reduce harmful CO2 emissions in the USA by around 40% by 2030 compared to 2005. It is no coincidence that major corporations like Amazon are coming forward to boost their brand presence with a breeze of green commitment. In addition to a stake in Plug Power, the tech giant ordered H2 forklifts for its logistics centers. Such lighthouse orders create room for imagination. And Plug can come up with further highlights with the help of its cooperation partner Lhyfe. Under the project name "Sealhyfe", the first 1MW offshore electrolyzer using only wind power was commissioned in Saint-Nazaire, France.

    The Plug Power share was able to cushion the volatile months of August and September quite well, as GreenTech attracted a lot of attention due to the energy crisis. However, price levels at EUR 30 were used for profit-taking and led to new markdowns to currently EUR 23. Technically, the critical catch-up zone lies between EUR 15 and 20. Here there are renewed opportunities for momentum traders. Fundamentally, the share is still not cheap.

    dynaCERT and Daimler Truck - IAA Transportation points the way forward

    For the Canadian technology company dynaCERT, there have recently been some noteworthy successes in the distribution of its hydrogen solutions HydraGEN and HydraLytica. The ready-to-sell solutions reduce emissions from diesel vehicles and couple operational data with recording via software for later receipt of carbon credits. For the first time in years, the industry is shifting its focus away from electromobility and toward hydrogen solutions. The reason is obvious: electromobility, like fossil energy, is still strongly linked to the availability of energy sources. But now that these are lacking and electricity prices are constantly climbing, the cost of operating e-vehicles has more than doubled. The economic advantage over fuel-burners is thus fed more by tax savings.

    As a result, the search for alternatives is underway, and that alternative is hydrogen. The technology of dynaCERT is a H2-on-demand solution which can transform already existing fleets into a world with reduced climate gases. What is missing, of course, is the mass production and distribution of green hydrogen. Also boosting dynaCERT could be the expected certification of its technology by VERRA. VERRA's global standards and frameworks serve as a linchpin for channeling funding into activities that address some of our time's most pressing environmental issues. And anyone familiar with the truck density on North America's freeways can readily appreciate the dimensions for potential energy savings.

    At Daimler Truck, tests with a hydrogen fuel cell truck are already underway. The technology is expected to be ready for series production by 2028, and a decision on whether to go ahead with it at all has probably already been made with a vote in favor of liquid hydrogen. While the life cycle of a passenger car covers around 300,000 km and 8,000 hours of operation, a 40-ton truck covers a total of 1.2 million km and 25,000 hours. In the driver's cab of the Daimler GenH2 truck, you can experience how quietly, smoothly and unspectacularly the fuel cell tractor unit can be moved. And all this with a zero climate footprint if the hydrogen can be generated with green energy. Lots of future dreams, but also the first tangible results in a highly dynamic market.

    Both dynaCERT and Daimler Truck have experienced a significant downward movement on the stock market. In the case of Daimler, the EUR 22 mark is important from a chart perspective, but there is no urgent need to buy yet due to imminent recessionary tendencies. At dynaCERT, on the other hand, it could go up very quickly because of VERRA. An initial 120% price reaction from the low has already occurred.

    ThyssenKrupp - Where hydrogen is already making its mark

    The ThyssenKrupp Group provides a good example of hydrogen in action. The H2 subsidiary Nucera, which until recently was called Uhde Chlorine Engineers, has been developing large-scale hydrogen production plants for several years. The Company, headquartered in Dortmund, Germany, is targeting sales of up to EUR 1 billion by 2026. Most recently, Nucera generated revenues of EUR 319 million and EBIT of EUR 27 million. With its approximately 400 employees, the Company is already profitable today, which is not necessarily common in the industry.

    Because of the poor state of the market, Thyssen recently postponed Nucera's IPO indefinitely. The estimates of banking experts from the IPO valuation ranged from three to six billion euros in early 2022. In a commentary, Bank of America valued the ThyssenKrupp package of 66% at EUR 2.3 billion, bringing the total company to a low EUR 3.4 billion. Given the shrunken stock market values of Plug Power and Nel ASA, the sales factor of 10 would probably no longer be feasible today. In a recurring IPO environment, ThyssenKrupp could plan another attempt, but when this will come is perhaps written in the stars. TKA shares are only trading around 12% above their low for the year, but in a recent study, Citibank sees the steel sector in the black. Due to ThyssenKrupp's broad positioning, the bombed-out stock should be kept in mind.


    Hydrogen stocks always have their charm because their relevance in the fight against global warming is evident. Currently, the sector trends are still negative, but that can change again quickly. Positive special movements in the share price, as was recently the case with dynaCERT, are always possible and can also be expected if the news situation is right.


    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.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Juliane Zielonka on December 1st, 2022 | 13:09 CET

    First Hydrogen, Tesla, Volkswagen - Hydrogen or battery drive, who makes the race?

    • Hydrogen
    • Electromobility
    • GreenTech

    The German Federal Ministry of Research and Education has big plans: the natural gas network is to be converted as a supply structure for hydrogen so that Germany is well equipped for the future. The Canadian company First Hydrogen is betting on hydrogen propulsion, launching its first production facility in Quebec. A call for leadership is being heard regarding Elon Musk and his car company Tesla. It seems that a blue bird and the desire for freedom of expression are taking up so much of his time that the share price is wobbling. The competition is not sleeping: Volkswagen is currently number one in Europe with its EV models. Who will make the race?

    Read

    Commented by Fabian Lorenz on December 1st, 2022 | 11:55 CET

    Comeback stocks: Nel, Aurora Cannabis, Barrick Gold, Tocvan Ventures

    • Mining
    • Gold
    • Hydrogen
    • Cannabis

    Gold, cannabis and hydrogen could be among the top trends of the coming year - also on the stock market. Due to full order books, Nel could be poised for a comeback in 2023. At least sales are already secured until mid-2024. Now, all that is left is to cut the loss to reach analysts' price targets. Aurora Cannabis has largely completed its turnaround and is also hoping for legalization in Europe and the US. Driven by a strong gold price, mining stocks have already jumped. Now exploration companies should follow. Tocvan Ventures is one of them. And with the gold explorer, investors can look forward to a regular news flow in the coming year. Are the three candidates comeback stocks in 2023?

    Read

    Commented by Stefan Feulner on November 30th, 2022 | 12:01 CET

    Profit now from the energy transition - Rock Tech Lithium, Power Nickel, Shell

    • Mining
    • Lithium
    • Electromobility

    In the past, the internal combustion engine was at the center of the automotive industry, but this is now to change as quickly as possible in order to achieve the specified climate targets. Electrification is the magic word. However, there are high hurdles to overcome in implementing this. For example, it is still not certain whether the battery metals required for this, such as lithium, cobalt, copper and nickel, are available in sufficient quantities. Demand for the critical metals already exceeds supply. The beneficiaries are undoubtedly the producers of the scarce goods.

    Read