Nel ASA, Clean Logistics, Plug Power - Is hydrogen fuel for the depot again?

Nel ASA - Leaving the downward trend

Norway's Nel ASA offers solutions for producing, storing, and distributing hydrogen produced from electrical energy, preferably renewable energy. Should the German government convince the rest of the EU to invest more in hydrogen, Nel ASA would benefit. Already on November 25, the Company was able to surprise with an order from Ovako for 20 MW electrolysis plants at a volume of about EUR 11 million. In terms of green steel, the Company is taking a leading role in Scandinavia.

The latest quarterly figures also surprised positively and were well above analysts forecasts. Sales in the third quarter were USD 27.5 million, while the expectation was only USD 19.3 million. However, the loss of USD 60.9 million was more than twice as high as the revenue. Losses are still the order of the day in these future markets, however, and so investors then increasingly turned to the stock again.

The share price climbed from 13.81 Norwegian kroner (NOK) to NOK 20.44 on November 12. The downward trend was thus broken for the time being. The upward trend remains intact if the share does not fall below NOK 12.81. The investment bank Jeffries published a study on the hydrogen market at the beginning of November and sees enormous potential there in the coming years. The target price was set at NOK 23.

Clean Logistics - On course for growth

In Germany, hydrogen is to be used primarily in industries where electrification is not possible, such as the steel industry. But the use of hydrogen is also interesting in freight transport. A pioneer in hydrogen hybrid drives for trucks and buses is Clean Logistics from Hamburg. Founded in 2018, the Company was created by three successful entrepreneurs to develop environmentally friendly drives for the logistics industry. CEO Dirk Graszt is a freight forwarder and logistics expert and realized early on that a CO2-neutral fleet could give them a competitive edge. So the Company began converting conventional diesel vehicles.

The hydrogen bus delivered this summer, which has a range of 300 km, shows that the vision has already become a reality. The propulsion system consists of four core components, the hydrogen fuel cell system, a lithium-ion energy storage system, an electric rear axle and the hydrogen tank, equipped with a sensor, filter and telemetry system for ongoing monitoring. Not only is the drive emission-free, but it is modular enough that individual building blocks can be replaced if there are new developments in an area that improve the drive's performance. In addition, the system is virtually maintenance-free, thus significantly increasing the service life of the vehicles.

There are already 18 conversion orders for the coming year, which will be subsidized by the German Federal Ministry of Transport. In addition, capacities are to be expanded so that 300 vehicles can already be transformed in 2023. In Nebenwerte Magazin, the CEO said, "We want to grow quickly...". On November 11, the news about the planned acquisition of E-Cap Mobility GmbH shows that the management is also following words with actions. The money for this comes from a capital increase from this year, which flushed EUR 4.1 million into the coffers. The share reached its high for the year at EUR 10.80 and is currently trading at EUR 7.50. The next support level is at EUR 6.50.

Plug Power - Lands major order

Plug Power is based in the US and offers turnkey hydrogen fuel cell solutions for the electromobility and stationary energy markets in North America and Europe. The Company offers its products to the retail and industrial markets through both a direct sales force and dealer networks. Increasingly, partnerships are being entered into with larger partners such as Airbus SE and, most recently, Acciona Energia, a company that is completely focused on renewable energy. As a result, the European market is becoming even more of a focus for Plug Power.

On November 24, the Company announced that its European headquarters will be located in Duisburg. The Group also announced a major order from Fertiglobe for 100 MW of electrolyzers. They will produce green hydrogen in Egypt to produce 90,000 tons of green ammonia. This major order opens the door to an ideal location for green hydrogen production. Plug Power aims to produce 500 tons of green hydrogen by 2025.

Plug Power's stock has been one of the strongest in the hydrogen market for some time. Since early October, the stock has risen from USD 23.81 to USD 46.50, nearly doubling. Currently, the stock is consolidating and trading at USD 35.48. There is still a price gap open at USD 29.78. A total of 19 analysts still see the stock as a buy with an average price target of a good USD 49.

The hydrogen market may have a bright future. The prerequisite is that the cost per kilogram of hydrogen is significantly reduced. Until then, it will take some time. Nel ASA has chosen green steel as its focus and is leading the way, at least in Scandinavia. Clean Logistics tackles one of the world's main emissions challenges, freight transport. Zero-emission buses and trucks are essential if climate targets are to be met. Plug Power continues to grow and receive major orders from areas it has not yet conquered. The Company is a leader in the production of green hydrogen.