More than 100% with hydrogen stocks: Plug Power, thyssenkrupp nucera, First Hydrogen

First Hydrogen: Expansion to Germany and potential large orders?

First Hydrogen is taking the next step in Europe. After demonstrating the performance of its hydrogen-powered fuel cell commercial vehicles (FCEV) and superiority over battery-powered models in various tests in the UK – including with utility provider Wales and West Utilities and the online giant Amazon – the Company is now expanding to continental Europe. From First Hydrogen's perspective, Germany is the ideal location for its first office. Notably, there is already an agreement in place to install First Hydrogen's fuel cell powertrain in the established light commercial vehicle of a major German automaker. With an estimated retail price of EUR 50,000, annual sales of 10,000 vehicles would generate EUR 500 million in revenue – the Company is currently valued at less than EUR 15 million. In Canada, preparations are already underway to build an assembly plant with an annual capacity of around 25,000 vehicles for the North American market.

In its report on the German location, First Hydrogen also refers to the importance of hydrogen within the future European energy supply. With its commercial vehicles powered by hydrogen fuel cell propulsion, the Company aims to contribute to the successful transformation and has commissioned several international companies with expertise in the development of renewable energies, infrastructure construction, mergers & acquisitions, and fundraising to support this. In Germany alone, the natural gas grid is to be transformed into a 9,700-kilometer hydrogen highway. Along this network, 17 hydrogen hubs – some already in operation – will form the regional hydrogen ecosystem and ensure supply.

First Hydrogen CEO Balraj Mann commented: "Europe has made a clear commitment to a shift away from dependence on fossil fuels and towards clean hydrogen. Countries like Germany have approved EUR 4.6 billion in funding for hydrogen projects under the IPCEI protocol. First Hydrogen is now bringing its hydrogen fuel cell vehicles to Germany. We were the first in the market to successfully trial various vehicle fleets in the UK." This should also boost the share price.

Plug Power: Good news flow, but not a bargain

While First Hydrogen is expanding, Plug Power is having to step on the brakes. This is because investors are no longer willing to accept the high losses. Recently, however, the Americans have attracted attention with positive news flow.

Plug Power has received USD 10 million from the US Department of Energy (DOE) to develop the next generation of hydrogen refueling infrastructure for medium and heavy-duty commercial vehicles on a large scale. In collaboration with various universities and research institutions, the aim is to develop a high-flow, direct-fill hydrogen refueling station.

Plug CEO Andy Marsh commented: "We are grateful for the Department of Energy's support, which underscores Plug's leadership in the hydrogen sector. With more than 250 high-performance filling stations - more than any other company in the world - we are ideally positioned to lead this important commercial demonstration project with our proven expertise."

This expertise is also available to other companies. For example, it was reported that Plug supports H2DRIVEN in Portugal with the technical evaluation phase (TEP) for a 25-megawatt Proton Exchange Membrane (PEM) electrolyser. H2DRIVEN plans to use it to produce 80,000 tons of green methanol annually from 2027. The sustainable methanol is to be used in heavy industry and in mobility applications.

Thyssenkrupp Nucera: New funding and over 100% upside potential

Thyssenkrupp Nucera is also involved in electrolysers for heavy industry. The leading German hydrogen company has received the Hydrogen Impact Investment Award in the "Impact Technology of the Year 2024" category for its alkaline water electrolysis (AWE). "We need green hydrogen to decarbonise heavy industry and achieve ambitious global climate targets. With alkaline water electrolysis, we have the right technology to achieve the necessary gigawatt dimensions right now," says Dr. Werner Ponikwar, CEO of Thyssenkrupp Nucera. Thyssenkrupp Nucera introduced the scalum® product name for the 20-megawatt alkaline water electrolysis modules last year. Each scalum® unit contains around 300 highly efficient cells. The 20-MW modules will be used, among other things, for the development of the H2 Green Steel large-scale plant in Sweden (more than 700 MW).

Thyssenkrupp Nucera's stock is also likely to be negatively affected by the problems of its parent company. In the past five trading days, the security gained a little more than 8%, but it has nevertheless lost around half of its value in the current year.

However, analysts see upside potential. Most recently, Bernstein Research reiterated its "Outperform" recommendation. The price target is EUR 20, more than 100% above the current level of between EUR 8 and EUR 9. The analysts expect that the EU will provide more funding for hydrogen projects by European companies in the future. Thyssenkrupp Nucera should benefit from this.

Plug Power is still a hot potato. The market capitalization is a proud USD 2 billion, growth is not going as planned, and losses seem to be part of the business model. In contrast, First Hydrogen is about to reach an important milestone this year. The vehicles have successfully passed the practical test, and now the Company's focus is on securing large orders and starting production. If that happens, the current valuation of less than EUR 15 million would be ridiculously low, and a multiplication will be likely. Among the major hydrogen specialists, Thyssenkrupp Nucera appears to be the most solid company. It is growing and has already proven that it can make money.