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September 4th, 2023 | 07:40 CEST

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

  • Hydrogen
  • greenhydrogen
  • renewableenergies
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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:

    Dirk Graszt, CEO, Clean Logistics SE
    "[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE

    Full interview


    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.

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    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

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