16. April 2021 | 07:30 CET
NEL, Enapter, Plug Power: Hydrogen? It's just getting started!
If you look at the prices of selected hydrogen stocks, you might think the hype is over. But the big players in the industry are only now jumping on the bandwagon. Bosch, for example, has decided to really take off with fuel cells for trucks. The aim is to establish the technology in China. Here, a large market is waiting, which could also be groundbreaking for other sales markets. Specialized companies from the hydrogen sector could profit from this - after all, large industrial companies such as Bosch are always interested in new technology.
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ISIN: NO0010081235 , DE000A255G02 , 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: Here, calm has returned
The Norwegian company NEL offers everything to do with the production, transport and storage of hydrogen. The stock completed an impressive rally in 2020, rising from a penny stock to over EUR 3.30. After that, a correction set in, which has now lasted several months. The share is currently trading at under EUR 2.50. In recent weeks, voices have repeatedly been raised describing the NEL share as technically battered. Indeed, the air is out of NEL for the time being. However, this can change quickly as soon as the market again focuses on the latest developments around hydrogen.
While electromobility seems to have gained acceptance for passenger cars, this by no means spells the end for hydrogen - on the contrary. It is now clear that large vehicles will be powered by fuel cells in the future. These include not only trucks but also ships. NEL has already entered into cooperation agreements with the Mitsubishi and Hyundai conglomerates. NEL is also well-positioned in the production of green hydrogen using solar energy. The fact that the share is taking it easy is not a bad sign in the long term. As soon as the fundamental development is right, good opportunities may also arise again for NEL.
Enapter: German engineering for cheap green hydrogen
Enapter is also fundamentally on track. The German company recently entered into a joint venture with the Wilo Group. The goal: to develop cooperations and create synergies between the two companies. Wilo develops pumps and pump systems for building services, water management and industry. For Enapter, the partnership could open up sales markets in the medium term and provide new impetus for products. Enapter is on the verge of bringing its patented electrolyzer technology into mass production - starting in 2022, 100,000 units are expected to roll off the production line annually. Electrolyzers are used to produce hydrogen. Enapter is focusing on so-called "green hydrogen," i.e. hydrogen that is fed from renewable energies. The key is that Enapter's electrolyzers can be combined, creating the potential for cost reductions for customers.
The share is currently trading at EUR 21.60. Just weeks ago, the stock was still scratching the target price of EUR 41.70 set by analysts First Berlin in early February. Since Enapter is about to start series production in North Rhine-Westphalia and the recently announced cooperation with Wilo Group has again underscored its ability to become a hydrogen partner for the German industry, investors' opportunities are currently good. Although the stock could still come under some pressure in the short term, Enapter's product, management and equity story are all right. The German hope for hydrogen is a stock that investors should keep in mind - especially in a phase where prices are coming back.
Plug Power: All-rounder hopes for falling prices for green electricity
Prices have also come back for Plug Power. The hydrogen pioneer focuses on buses and smaller trucks with fuel cells and has a great deal of expertise in this area. In addition, there are numerous cooperations, such as with Linde. The US company can also imagine expanding into Europe to grow even stronger. Earlier this year, the company also announced a joint venture with Renault. The most important goal for Plug Power, however, is to generate significant sales. To do so, green hydrogen, which the company produces itself, must become cheaper. For Plug Power, this development is a no-brainer due to falling costs for renewable energy. Whether the technology is competitive in the long term, however, remains to be seen.
However, Plug Power is well-positioned thanks to its diverse activities. The company covers large parts of the value chain associated with hydrogen, from logistics and electrolysis to reverse-engineering. Who will ultimately prevail on the hydrogen market, however, still depends on the costs. Enapter's German competitors expect their technology to deliver significant cost advantages and see themselves better positioned than other companies. While the jack-of-all-trades Plug Power is valued at almost EUR 12 billion, Enapter is only valued at around EUR 500 million. Since the key to market power lies primarily in costs, Enapter could be the more attractive choice in the long term.