16. June 2021 | 12:21 CET
Nel ASA, Pure Extraction Corp., Ballard Power - Advantage hydrogen!
While the stock market darlings of the past year, hydrogen shares, are still working on their chart-technical bottoming phases after heavy price losses in the spring, the topic is at the center of political attention concerning the energy turnaround. According to the Ministry of Economic Affairs, hydrogen is the missing piece of the puzzle so that climate protection can succeed in industry and the economy remains competitive at the same time. This week alone, the federal government released EUR 1 billion in funding for six hydrogen projects in Bavaria.
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ISIN: NO0010081235 , CA74622J1012 , CA0585861085
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
While electromobility is currently gaining an advantage in the passenger car segment, battery technology for electric vehicles is rather unsuitable for commercial transport due to weight, recharging time and short range. The lightness of hydrogen and rapid refueling gives fuel cell technology the advantage over EVs for long distances while meeting commercial transportation's power and load requirements.
Truck manufacturers are currently developing fuel cells for use in commercial vehicles, often with specialized partners. Work is also underway on hydrogen fueling systems that are a good compromise of size, weight and cost. While systems using hydrogen were previously considered too expensive, industry experts say prices are expected to drop by 50% over the next three years, making it significantly cheaper than diesel. The reason for the price drop is the combination with wind or solar energy. As the cleanest fuel source of the future, major oil and gas companies are already making the shift away from petroleum products to "blue hydrogen."
The best of the best
Pure Extraction Corp.'s management, consisting of executives with globally recognized experience, sees the biggest change historically in the energy market as an opportunity and intends to harness the potential with a "best of" strategy. Ultimately, the Company aims to become the leading designer and manufacturer of zero-emission, long-range hydrogen-powered commercial vehicles in the UK, EU and North America. The particular focus is on the global logistics market and its efforts to meet emission reduction targets due to the booming digital economy. Rising online orders are increasing pressure on the transportation industry for last-mile logistics, low delivery costs and fast delivery.
The "First Hydrogen Utility Van" aims to solve the problems faced by Amazons, UPS and Ocado. According to management, by bringing in partners through a design and integration strategy and leveraging a proven chassis, First Hydrogen, the wholly-owned subsidiary of Pure Extraction Corp, has a significant market advantage and substantial cost benefits. In addition, the prototype is expected to take a maximum of 12 months to build, well below the industry average.
Strong partners on board
Last week, the Company announced two extremely important partnerships. None other than the industry leader Ballard Power was won for the technology. Ballard Power is a leading global provider of innovative clean energy, with a hydrogen fuel cell fleet that has traveled over 50 million km worldwide.
A definitive agreement has been signed with AVL Powertrain UK for the design area. AVL Powertrain UK Limited is part of the AVL Group, the world's largest independent engineering, simulation and testing company in the automotive and other industries. AVL will plan and execute the integration of all powertrain components, including the development of vehicle components and control software.
The two partnerships propel Pure Extraction Corp., or the subsidiary First Hydrogen, into a serious player in the hydrogen-powered commercial vehicle market. The shares are tradable in Toronto and Frankfurt.
Ballard Power in cooperation fever
The Canadian manufacturer of fuel cells based in Burnaby near Vancouver is not only cooperating with Pure Extraction Corp. In the context of the 6th International Hydrogen Fuel Cell Vehicle Congress, which took place in Shanghai from June 08 to 10, 2021, a multi-year supply agreement in the field of fuel cells was signed with the American industrial Company W. L. Gore & Associates. With Gore's decades of expertise in membrane technology, the Canadians decided to expand the partnership that has been successful for years.
Bottom taking shape
At a 50% discount to last year's high, the share of the Norwegian hydrogen specialist Nel ASA is currently available. The broad support zone at EUR 1.60 has now been tested several times and successfully defended. Yesterday, the Nel share received a boost from positive news and tried to generate a procyclical buy signal by jumping above EUR 1.82, which would mean the EUR 2 mark as the next price target. Intraday, however, this was nullified by larger sales. The volume is currently increasing; a breakout above the aforementioned EUR 1.82 would be necessary in the short term. Otherwise, a further test of the annual lows at EUR 1.58 is imminent.
The Canadian bank RBC commented positively on the Norwegians and sees enormous growth potential here. In the field of green hydrogen, RBC sees Nel ASA as the clear market leader. Should the Norwegian plant manufacturer, which specializes in the production, storage and distribution of the energy carrier hydrogen, secure only 5% of the total market by 2030, this would mean a growth of the capacities installed by Nel by a factor of 46, according to the analyst. The initial rating was set at "outperform" with a price target of NOK 27.