May 14th, 2024 | 07:15 CEST
Nel ASA, dynaCERT, Plug Power - Growth in the hydrogen sector
The hydrogen market is currently experiencing an upswing, characterized by an increasing number of large orders and stronger demand for hydrogen technologies. One example of the momentum in this sector is the recent success of Canadian fuel cell manufacturer Ballard Power, which has received the largest order in its history from Polish bus manufacturer Solaris. This order, which includes the delivery of 1,000 fuel cell engines by 2027 to equip hydrogen buses, demonstrates the market's willingness to invest in sustainable and innovative mobility solutions. The German company Enapter increased its order intake in the first quarter by 730% compared to the previous year - reason enough to take a look at other hydrogen companies.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , PLUG POWER INC. DL-_01 | US72919P2020
Table of contents:
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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Nel ASA - Quarterly results underline growth
Nel ASA, a pioneer in hydrogen technology, presented its figures for the first quarter of 2024 on April 17. With a jump in sales to NOK 387 million, the Company was 14% up on the previous year. EBITDA was NOK -16 million, mainly due to the renegotiations with Nikola. The solid cash reserve of NOK 3.26 billion shows that the Company is in a good financial position, although not all figures were positive. There is a slight decline in order intake, and the order backlog should increase again in the future.
The announcement of a partnership with Hy Stor Energy to develop the Mississippi Clean Hydrogen Hub marks a significant milestone in Nel's expansion story. By reserving over 1 gigawatt of alkaline electrolyser capacity, Nel underscores its commitment to significant CO2 reductions and the implementation of large-scale green hydrogen projects. The exclusive collaboration on the project reflects Nel's confidence in its technology and expertise and positions the Company as a key player in the international hydrogen economy.
Despite temporary obstacles, the direction is clear: Nel is well on its way to not only maintaining but further expanding its significant role in the green energy sector. The planned expansion and strategic realignment, including a possible spin-off of the filling station business, paint a picture of an agile and forward-looking company. In addition, the positive developments in the alkaline electrolyser division and the financial incentives for a new electrolyser plant in the US underline Nel's potential to face the upcoming market opportunities. The share has recently risen and is currently trading at NOK 5.592, giving it a market capitalization of around NOK 9.5 billion, corresponding to around USD 875 million.
dynaCERT - Strategic move for the future
dynaCERT, a pioneer in the development of technologies to reduce CO2 emissions, is strengthening its management team with the appointment of Bernd Krüper as President and Director. With this move, the Toronto-based company, which has made a name for itself with its patented HydraGEN™ technology, is sending a clear signal of its ambitions in the global hydrogen market. Krüper's extensive experience in the automotive and energy industries, coupled with his expertise in digital transformation and sustainable technology development, will help dynaCERT strategically evolve and drive its expansion.
Krüper's professional career is characterized by significant leadership roles in international companies. His contribution as Deputy Chairman of the Verband Deutscher Maschinen- und Anlagenbau e.V. (German Engineering Federation) and his previous top management roles, including at Motorenfabrik Hatz GmbH, give him a rare blend of industrial know-how and strategic foresight. He was also involved in global strategic sales planning and marketing at the Daimler Group**. This experience seems tailor-made for the challenges and opportunities that dynaCERT faces in the dynamically growing hydrogen industry.
Krüper's appointment comes at a time when dynaCERT is not only driving the improvement of its technology but also increasing its global distribution and acceptance. The Company has previously brought in valuable expertise in the form of Tanya Rowntree, an experienced investment executive, and Dr. James Tansey, an expert in environmental science and carbon markets. Dr. Tansey can assist dynaCERT with the launch of the carbon credit program for users of HydraGEN™ technology. Verra certification is in its final stages, as can be seen on Verra's website. The share is currently available for CAD 0.135, resulting in a market capitalization of CAD 56 million.
Plug Power - A look at quarterly figures and future prospects
The hydrogen company Plug Power has attracted attention in recent weeks - despite a weakening overall market and the threat of a multi-year low. The reason for this is the successful acquisition of new contracts for Basic Engineering and Design Packages (BEDP) in Europe and the US, which form the basis for the delivery of electrolysers with a capacity of up to 350 megawatts. This development not only signals continued growth in the Company's electrolyser segment but also underlines the expertise and confidence in PEM technology that Plug Power is driving forward.
In addition to the successes in the electrolysis business, Plug Power is also expanding in the area of cryogenic solutions. The Company has been awarded certifications for liquid hydrogen storage tanks and transportation trailers in Korea and several contracts in North America. The contracts include the delivery of cryogenic systems to a multinational industrial gas company and a nationwide power company, with deliveries scheduled to start this year. In addition, an industrial gas company has ordered eight cryogenic trailers for the North American market, underpinning Plug Power's strategic positioning and expansion efforts.
Despite positive developments, the situation for Plug Power remains tense. The latest quarterly figures were again disappointing, revealing a decline in revenue and an increase in net loss compared to the previous year. The Company's management cites seasonal factors and delays in electrolyser projects as reasons for the unsatisfactory results. In addition, hydrogen production only started during the quarter, so the upcoming figures should be more indicative. With a current share price of USD 2.56, the market capitalization still stands at USD 1.9 billion.
There are positive developments in many hydrogen companies. However, the major corporations are still not profitable. At Nel ASA, they are considering improving their balance sheets by spinning off the filling station division. Financially, they are currently in a better position than Plug Power. Insolvency is off the table again for the time being, but the figures must improve quickly. Both companies are also suffering from high valuations. dynaCERT has strengthened its management team and is ready as soon as the Verra certification** is obtained. This certification would necessitate a revaluation of the share.
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