November 8th, 2022 | 12:24 CET
Hydrogen trends for the radar! NEL, First Hydrogen, Plug Power
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
NEL: Looking forward to the next quarters?
One of the hydrogen endurance burners is the share of the Norwegian company NEL. On a one-year horizon, investors currently have to live with a loss of around 35%. Yet the Company is making good progress operationally. NEL has already announced major orders several times. In October, the largest order in the Company's history was added, with a volume of EUR 58 million. Above all, business with electrolyzers, i.e. equipment for the production of hydrogen, is going well. The Company considers itself to be in "a different league" given the increasing number of orders and is investing in production capacities. By 2024, the manufacturing capacity around electrolyzers is expected to double to around 1 GW.
During the past quarters, NEL repeatedly caused disappointment with weak figures. However, operational progress could now also improve the figures. As a specialist in the production, storage and distribution of hydrogen, NEL is in a good position to benefit from the growing popularity of this energy carrier. The latest orders indicate that NEL can stand out in the market despite growing competition from established industrial companies. The share is stuck in a downward trend on a one-year horizon, but even within the overriding downtrend, it still has some room to move upwards. However, only a change in trend will make NEL an interesting share in the long term.
First Hydrogen: Hydrogen vans to be tested under real conditions
On the other hand, First Hydrogen has been on an upward trend for a year. The Canadian company specializes in the construction of hydrogen delivery vehicles and is collaborating with Ballard Power and AVL Powertrain, among others. The aim is to design vehicles for delivery services that are geared to the conditions in the respective target markets and can be easily adapted. To that end, First Hydrogen is deliberately setting itself up to be "technology neutral" and intends to rely on local manufacturing. Only recently, the Company announced that a hydrogen van is ready for testing by interested customers in Birmingham, UK.
Tests under real conditions will be possible in the UK from January 2023. Potential customers could register in advance for the tests. They include companies from grocery chains, infrastructure and utility companies, and healthcare providers. "The global light commercial vehicle (LCV) market is estimated to be worth USD 463.00 billion in 2020 and is expected to reach USD 786.50 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.3%," First Hydrogen reports, citing market researchers at Allied Market Research. With light- and heavy-duty vehicles collectively responsible for about 35% of transportation emissions, there is great potential for companies in this sector to raise their ESG profile. First Hydrogen's stock is speculative because of the Company's early stage, but the price has come back from its foray above EUR 4. The share also continues to have what it takes for dynamic developments.
Plug Power: Here, everything comes together
The situation is different at Plug Power, with the share recently losing ground. The reasons were a profit warning and the subsequent rupture of technical support. At the same time, however, indicators already point to an oversold situation at Plug Power. Trading at the start of the week even showed a kind of stabilization. Plug Power's stock is currently only suitable for short-term oriented traders and experienced bottom fishers. Given the capped forecast, an operational turnaround at Plug Power is not imminent. The share is thus rather uninteresting for all who want to invest in the long term.
By contrast, things are already looking better at NEL. Here, at least, increasing order volumes indicate an improving business. First Hydrogen, on the other hand, has yet to receive any orders, but its valuation is significantly lower. Existing prototypes and tests under real conditions from January also show that the Company is already well advanced. For those who want to learn more about First Hydrogen, researchanalyst.com provides regular in-depth updates.
Conflict of interest
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