23. July 2021 | 12:47 CET
Nel ASA, dynaCERT, Plug Power - Investments in hydrogen increase worldwide
Sustainability is a trend that is gaining more and more momentum. This can be seen well in the investments announced in the hydrogen sector. In February, members of the Hydrogen Council, which is made up of 109 global companies, wanted to put USD 80 billion into developing hydrogen projects. By July, that sum had increased by USD 70 billion to USD 150 billion. Europe is a frontrunner in hydrogen technology thanks to funding from the EU Commission's Important Projects of Common European Interest (IPCEI). According to McKinsey, it is only a matter of time before hydrogen is traded like all other commodities. Today we highlight three companies in the hydrogen segment.
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ISIN: NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , PLUG POWER INC. DL-_01 | US72919P2020
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
Nel ASA - Now with 3-fold bottom
Nel ASA is benefiting from EU funding through the "Fit for 55" program. The initiative is intended to ensure the achievement of climate targets. After the disappointing quarterly figures at the beginning of May, it was quiet around the Company for a long time. Until June 22, when a cooperation with several companies, including Volvo and Hitachi, was announced. The collaboration aims to enable the rolling of steel using hydrogen. Green hydrogen is to be used, i.e. hydrogen obtained from renewable energy sources and is therefore climate-neutral. The project will receive a total of 180 million Swedish kronor (SEK) in funding.
On June 24, a framework agreement was signed with Howden for the supply of hydrogen compressors. For CEO Løkke, this contract is a strategic partnership. The goal is to bring the cost of green hydrogen down to USD 1.50 per kilogram. A very ambitious plan, considering that you currently pay EUR 9.26 per kilogram at public hydrogen filling stations in Germany. The high price is currently the biggest problem for hydrogen technology.
The primary trend in hydrogen is underpinned by this news, but the downgrade by JPMorgan sent the stock down almost 6% last Friday. The bank downgraded Nel ASA to "underweight" and lowered its price target from 28 Norwegian kroner (NOK) to NOK 15. Last Monday, the stock retested the double bottom already formed and bounced back from NOK 16.38 to NOK 18.55. If the NOK 18.74 level is exceeded, the share should test the high at NOK 21.45.
dynaCERT - Growth prospects
dynaCERT has spent over CAD 70 million in 18 years researching and developing the HydraGEN technology and operates as a cleantech company. The patented process can be installed in all diesel vehicles and promises less fuel consumption (10-15%), longer engine life, and most importantly, up to 88% less toxic gases within the emission. Currently, the Company is working to obtain emission credits that will be shared between the customer and the Company. If this step succeeds, the Company faces a bright future.
Tesla's profits are based mainly on these carbon credits. For dynaCERT, this revenue stream would be similarly lucrative and would be another selling point for HydraGEN. The Corona Crisis cost the Company a lot of revenue. Management has taken advantage of the time to continue research and development and upgrade the large manufacturing facility in Toronto. CEO Jim Payne anticipates growth as the Corona pandemic slowly recedes.
On June 21, the collaboration with Galaxy Power was announced. The two companies share a vision to make the world a better place. The hydrogen economy combined with cleantech offers new business opportunities. In addition, there are tax incentives from the government if solutions are found to stop climate change. Due to the pandemic, the share price has come under a lot of pressure. However, the chart technology sends the first positive signals, so the bottom may have been found.
Plug Power - Green hydrogen project launched
Plug Power uses hydrogen as a fuel cell solution to power electric motors. To date, over 40,000 vehicles have been delivered with Plug Power solutions. In addition, the Company operates a hydrogen pipeline across North America and owns hydrogen refueling stations. The GenKey concept offers a wide range of solutions to help companies that want to run on hydrogen get started right away.
Plug Power is trying its hand at green hydrogen for the first time and has partnered with Apex Clean Energy. To generate green hydrogen, renewable energy is needed, and therefore 345 megawatts of wind power have been acquired. When development is complete, the plant is expected to produce 30 tons of green hydrogen per day. The plan is to be able to make at least 1,000 tons of hydrogen daily by 2028.
Similar to Europe, the hydrogen industry is supported by politicians. In the US, a price target of USD 1 per kilogram of hydrogen has even been issued. To achieve this goal, the Company brought David Mindnich, a former Tesla employee, onboard on July 22. The stock broke out of its downtrend in early June but is still struggling to form new highs. Closing prices above USD 28.46 would significantly brighten the chart picture.
Although electromobility currently has the edge, the battle between electromobility and the hydrogen drive has not yet been decided. If the price of hydrogen can be reduced significantly, its use will make more and more economic sense. Nel ASA and Plug Power are active in this area. A cleantech approach based on hydrogen is used by dynaCERT and offers the most fantasy in the short term.