Close menu

September 4th, 2023 | 07:40 CEST

Nel ASA, First Hydrogen, ThyssenKrupp Nucera - EUR 800 million for hydrogen in Europe

  • Hydrogen
  • greenhydrogen
  • renewableenergies
Photo credits:

The EU is determined to advance green hydrogen in Germany, and to support this goal, the EU Hydrogen Bank was allocated EUR 800 million in March. The auction process is set to commence in November, led by the European Executive Agency for Climate, Infrastructure and Environment. Subsidy payments may go up to EUR 4.50 per kg of green hydrogen. Any entity within the European Union capable of producing a specific quantity of green hydrogen at the lowest cost is eligible to participate. By 2030, the EU wants to produce 10 million tons of green hydrogen and import about the same amount. Germany also offers substantial incentives; Sunfire GmbH from Dresden, for example, received a whopping EUR 162 million in subsidies. We therefore analyze three hydrogen companies.

time to read: 4 minutes | Author: Armin Schulz
ISIN: NEL ASA NK-_20 | NO0010081235 , First Hydrogen Corp. | CA32057N1042 , THYSSENKRUPP NUCERA AG & CO KGAA | DE000NCA0001

Table of contents:

    Nel ASA - Waiting for orders

    Nel ASA has been active in the hydrogen market for a long time and has specialized primarily in electrolysers. While it is also active in the fueling sector, it is not as well positioned there, as seen in the Q2 figures. Although this division grew, it incurred high losses and was only able to sell 16 hydrogen filling stations worth USD 24 million in the period. The stations are being built in California. Order intake increased by 81% to NOK 428 million. The total order backlog at the end of the quarter was around NOK 3 billion. A whopping 83% of this is for electrolysers.

    However, since the solid Q2 results on July 18, there has been silence concerning new orders. At least there should be positive headlines on September 5, when one of Nel ASA's hydrogen plants in Sweden is commissioned by long-established steel recycler Ovako. The hydrogen produced is expected to reduce emissions from the rolling mills significantly. Even the Swedish prime minister will be on-site to inaugurate the plant. If the plant proves successful, Nel could potentially equip its 8 other sites with corresponding hydrogen plants.

    The question is what the Company intends to do with the fueling division, which is still highly loss-making. Either the Company divests itself of this division, or it finds a strategic partner so that it can get out of the red. The Company's valuation also remains very high. In August, JPMorgan issued a Hold recommendation with a price target of NOK 11.40. Even more pessimistic is Credit Suisse, which has advised Sell with a price target of NOK 8. Currently, the share is available for NOK 11.39.

    First Hydrogen - Targeting the parcel delivery vehicle market

    First Hydrogen is mainly active in Canada and the UK but is also working with a German company on hydrogen refueling stations to cover the entire value chain. The Company's focus is on developing light commercial vehicles powered by hydrogen fuel cells. First Hydrogen has enlisted various specialists, such as Ballard Power, to develop the vehicles using a best-of approach. The first demo vehicles are currently being tested on the roads of Great Britain. So far, impressions from fleet operators Rivus and SSE have been thoroughly positive.

    During test drives in Scotland, SSE managed to achieve a range of 630 km. Consumption of 1.58 kg of hydrogen per 100 km is lower than expected, even at higher speeds. The vehicle's battery is kept at maximum power by regenerative braking. The driving characteristics were also described by drivers as quiet and smooth. Rivus highlighted the vehicle's efficiency under various load factors. They especially praised the fast refueling time of less than 5 min, giving hydrogen propulsion clear advantages in terms of range and refueling time. The data obtained can be used for the development of the Generation II of hydrogen vehicles, which is already underway.

    The successful test drives have piqued the interest of parcel delivery companies who want to test the vehicle for express deliveries. This opens up another sales channel for the Company. Test drives with several parcel delivery companies are planned from the end of the third quarter to the end of the year. By 2032, the market for parcel delivery vehicles is expected to rise to USD 210 billion. Entering this market could be profitable for First Hydrogen. For more information, visit The share, which was trading at nearly CAD 5 earlier this year, has consolidated and is currently trading at CAD 2.60.

    ThyssenKrupp Nucera - Good quarterly figures

    ThyssenKrupp subsidiary Nucera has only been listed on the stock exchange since July 7. The IPO of the hydrogen subsidiary of the Essen-based group was eagerly awaited and brought a good EUR 500 million into the Company's coffers. Nucera also has expertise in the field of hydrogen electrolysis in large-scale solutions. To date, the Company has installed more than 10 gigawatts of capacity, primarily in the chemical industry. On August 28, the Company announced its Q3 fiscal 2022/23 figures, and they point to growth.

    Order intake rose 13% to EUR 242 million, with growth driven by demand for environmentally friendly solutions in the chlor-alkali electrolysis sector. Sales at ThyssenKrupp Nucera almost doubled year-on-year in the past quarter to EUR 187 million, driven by the execution of major projects such as the gigawatt plant in Saudi Arabia and the facility in the port of Rotterdam. Operating profit (EBIT) was EUR 7 million, compared with EUR 4 million a year earlier. Strong sales growth is expected for the rest of the year.

    The share, which could be subscribed for at EUR 20, got off to a strong start on the stock market and shot up to EUR 25.28 in Xetra trading. Since then, the share has been approaching its issue price of EUR 21.10. Even the good quarterly results and Deutsche Bank's Buy recommendation with a target price of EUR 30 have yet to be able to change this trend so far. The share is currently trading at EUR 21.10. However, compared to competitors such as Nel ASA or Plug Power, Nucera reports a positive operating result.

    The need for hydrogen solutions is great. Both the energy-hungry industry and the transportation sector are trying to curb their emissions. Hydrogen offers intriguing possibilities in these areas. Nel ASA is seeing growth but has a fueling division that is weakening earnings. First Hydrogen provides an alternative to electric vehicles, offering high range, low consumption, and quick refueling. Series production is expected from 2026. ThyssenKrupp Nucera is a newcomer on the stock exchange floor but already has some significant projects to show and is growing. Only a few hydrogen companies can report positive EBIT.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    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.

    About the author

    Related comments:

    Commented by Armin Schulz on February 26th, 2024 | 07:00 CET

    Plug Power, First Hydrogen, Daimler Truck - Hydrogen: the game changer in transportation

    • Hydrogen
    • Electromobility
    • fuelcell
    • Batteries

    The rapid development of electromobility has undoubtedly brought many advantages. However, there are some questions regarding its suitability for use in commercial transportation. The issues concerning the weight of the batteries, the long recharging time, and the limited range cannot be ignored. In view of these facts, it is questionable whether electric vehicles can completely replace diesel fuel in commercial transportation. There is a need for further technological advances, such as hydrogen propulsion. Although hydrogen has not yet received the same level of attention as electric vehicles, its potential suggests that it can solve the current problems.


    Commented by André Will-Laudien on February 23rd, 2024 | 07:00 CET

    Will GreenTech soon be back in vogue? Nel ASA, Klimat X, Nordex, and Plug Power are under analyst scrutiny!

    • Sustainability
    • GreenTech
    • renewableenergies
    • Hydrogen

    Despite new record highs in global stock markets, the GreenTech sector has yet to show any gains. The hydrogen sector, in particular, which was hyped in 2020/21, has been struggling for the past three years. With share price losses of 70 to 90%, investors are hopeful that a bottom could be reached in the foreseeable future. We analyze whether this could already be the case and present an alternative in the form of Klimat X. Business is running smoothly here, and the CO2 savings are even certified.


    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.