April 11th, 2022 | 18:58 CEST
New hydrogen fantasy: NEL, First Hydrogen, Amazon
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
NEL: More and more are getting involved in the core business
The Norwegian Company NEL is something of a full-service hydrogen supplier: NEL offers everything to do with the production, storage and transport of hydrogen. However, reading through the new orders, it is noticeable that the order volumes are relatively small for such a promising company. With the outbreak of the Ukraine war and the associated high energy costs, NEL's share price also shifted into forward gear again. But the euphoria has faded. It is all the more tragic that the share has not succeeded in breaking free from a chart perspective either: the March high was below the November high, and the share thus remains in a downward trend. On a one-year view, the share is down a sobering 34%. But how is the Company really doing?
Although NEL has a good market position in many areas related to hydrogen, the competition is growing. Siemens Energy, for example, recently announced its intention to build a new factory for electrolyzers in the Berlin area, which is scheduled to start production as early as 2023. The decision is also seen in industry circles as a frontal attack on the new fully automated electrolyzer plant in Heroya, Norway. Even though an emerging hydrogen market should leave room for both factories, Siemens Energy's move is a statement. Hydrogen is no longer a project for young companies but has long since arrived in large-scale industry. Although sometimes a bit sluggish, it can pick up speed quickly once the necessary critical momentum is reached. NEL has competition. That is not good news for the Norwegians, but it is all the more good news for the hydrogen economy.
First Hydrogen with relative strength: The summer will be hot
When more and more large companies seek new business around hydrogen, it shows that the technology promises success. First Hydrogen is hoping for the same success. Together with partners such as Ballard Power Systems and AVL Powertrain, the Company is developing a hydrogen-powered van. This van is to be ready for initial testing as early as June and could then convince customers. First Hydrogen has set itself the task of using the best components to put a vehicle on the road that combines the advantages of classic vans with those of innovative drive systems. The Company relies on proven bodies and fuel cells from renowned manufacturers to achieve this. In this way, the young Company wants to win delivery services and logistics companies as customers.
These companies increasingly have to comply with ESG criteria, i.e. sustainability criteria. First and foremost, this includes CO2 emissions. Those who rely on hydrogen instead of diesel have taken a big step forward - and score points with customers. As a first mover, First Hydrogen intends to live up to its name and respond even more specifically to the requirements of various industries after the first series, which is scheduled to hit the road in September. The Company has already met the demands of shareholders - in a weak market environment, the stock gained a whopping 30% in three months. This relative strength attracts attention and is a reason to take a close look at the stock.
Amazon facing a new era?
One of First Hydrogen's potential customers could be Amazon - or any other logistics company. Amazon has long since set up its own logistics service provider. Hydrogen vehicles could be one of the next steps for the innovative Company. Amazon is considered a good mix between eCommerce and technology and has long been a stock of the spirit of the times. However, the fact that these times are changing can be seen in the stock's performance over a one-year horizon - a 5.1% return is a bit meager for Amazon. Even on a three-year horizon, the chart has recently looked relatively flat. The Amazon share is no longer a sure-fire winner.
Amazon, NEL and First Hydrogen are worlds apart. While the former is the undisputed market leader in many regions of the world, the Norwegian Company NEL is considered the first choice for hydrogen - for now. The competition is already chomping at the bit. First Hydrogen, on the other hand, is positioning itself as a first mover. Delivery trucks with fuel cells could find their niche - a wide range of applications are conceivable. First Hydrogen plans to put the first vehicle on the road as early as this summer. The stock market likes the development of the up-and-coming company.
Conflict of interest
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