January 3rd, 2022 | 08:57 CET
Nel ASA, dynaCERT, Plug Power - The resurrection of hydrogen stocks
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
dynaCERT - When is the roll-out coming?
Yes, you are right. Last year we often pointed out the opportunities of dynaCERT's highly innovative and patented technology and the opportunities due to restrictions to reduce CO2 emissions in transportation. The share of the Canadian Company, on the other hand, only knew the way south, especially in the second half of the year. Currently, the stock market value of dynaCERT is EUR 55.78 million, and the share price has halved again since the interim high of EUR 0.28.
However, the future prospects with regard to the overall market and the technology are still given. In Germany alone, approx. 250,000 of the approx. 340,000 registered trucks would have to be climate-neutral by 2030 if the logistics industry wants to achieve the statutory CO2 reduction targets; in Europe, the figure is 2.3 million units.
dynaCERT, on the other hand, has the key with its Carbon Emission Reduction Technology, CERT for short, with 5 globally secured patent families. The resulting HydraGEN product is used in internal combustion engines, primarily in heavy vehicles. Here, the electrolysis unit produces water and oxygen and thus optimizes fuel combustion, resulting in a reduction in fuel consumption and, more importantly, a drastic decrease in emissions of up to 19%.
In addition, HydraLytica, intelligent software that records and analyzes consumption, has been developed. The saved CO2 can be converted into corresponding certificates and sold by the fleet companies. The fact that sales have now been expanded worldwide to almost 40 countries means that dynaCERT could surprise positively in 2022 and find its course back in a northerly direction.
Nel ASA - The mass market is calling
Politicians, not only the German government, see green hydrogen as the missing piece of the puzzle for the energy transition. The new government wants to quickly establish a hydrogen industry with an electrolysis capacity of 10 gigawatts by 2030. The priority is to produce green hydrogen with the help of renewable energies. The biggest challenge to overcome is the high price of hydrogen, the gas that is the most abundant chemical element in the universe, accounting for about 70% by mass. The solution for a drastic price reduction is the production of green hydrogen. It is produced by electrolysis of water, using only electricity from renewable sources. In conjunction with the expansion of wind and solar energy, this could massively reduce production costs over the next few years, and the CO2-neutral gas would be even cheaper in the long term than fossil fuels such as gasoline and diesel.
The Norwegian Company Nel ASA is one of the outstanding players in this field. Nel ASA implements its systems in cooperation with numerous companies. These include the US truck manufacturer Nikola Motor and the fertilizer producer Yara International. Hyundai is also among the Norwegians' clientele. Despite a sharp correction of over 50%, the market capitalization is still an ambitious EUR 1.46 billion. The major project in Heroya could give the share a significant tailwind in the coming year. By expanding the electrolyzer capacity, it should be possible to produce up to 500 MW of green hydrogen per year in the first stage after completion instead of the current 40 MW. In addition, there should be enough space in Heroya to expand Nel ASA's electrolyzer capacity in Norway to 2 GW per year.
Plug Power found in Asia
Plug Power is one of the world's leading companies in fuel cell technology and was founded in 1997 as a joint venture between the energy supplier DTE Energy and the measurement technology manufacturer Mechanical Technology. The Company develops and manufactures fuel cells for applications in electromobility, the operation of industrial trucks and stationary use in emergency power systems.
To accelerate its expansion into Asian markets, the US company recently announced a collaboration with South Korea's Edison Motors to jointly develop fuel cell city buses. In the process, Plug Power's 125-kW ProGen fuel cell engine will power Edison Motors' electric bus platform.
Although the current share price is not yet enough to get in from a technical point of view, the long-term prospects for Plug Power can be seen as positive. Hydrogen fuel cell technology will likely prevail over electric vehicles, particularly in transportation. Hydrogen has a high energy density of 33.33 kWh/kg, giving it almost as much energy as 3kg of gasoline. The lithium-ion battery, in comparison, comes to a maximum of 0.5 to 0.6 kWh/kg. As a result, the fuel cell enables higher ranges and shorter refueling times. In addition, switching to battery-powered heavy-duty vehicles is unprofitable for the operator.
Green hydrogen could become the missing piece of the puzzle for the energy transition. Although both Nel ASA and Plug Power are still in correction, both companies have great long-term potential. In the case of dynaCERT, positive news concerning the long-awaited roll-out could get the share price going.
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