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December 17th, 2021 | 12:50 CET

Nikola, First Hydrogen, Plug Power - Will the transport industry rely on hydrogen?

  • Hydrogen
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While the future of cars is most likely to be electric, the race in the transport industry has not yet been decided. There are electric buses, but they are more likely to be used in warmer climates. In winter, when heating is needed, electric buses are useless. The same applies to trucks and vans, as the high weight of the batteries means that some tractive power is lost here, and longer journeys also become impossible. The transport industry is responsible for a large proportion of CO2 emissions. If we want to achieve the climate targets we have set, we need a solution. Hydrogen could solve the problem, as the vehicles can be refueled much faster and the range is greater. But green hydrogen is still too expensive. Today we look at three companies working on hydrogen solutions.

time to read: 4 minutes | Author: Armin Schulz
ISIN: NIKOLA CORP. | US6541101050 , First Hydrogen Corp. | CA32057N1042 , PLUG POWER INC. DL-_01 | US72919P2020

Table of contents:

    Jim Payne, CEO, dynaCERT Inc.
    "[...] The VERRA certification adds credibility to dynaCERT's emission reduction technologies by demonstrating compliance with internationally recognized standards for carbon emissions reductions and sustainable development. [...]" Jim Payne, CEO, dynaCERT Inc.

    Full interview


    Nikola - Former CEO sells millions of shares

    Nikola Corporation has not yet decided on a solution. Therefore, the Company develops and manufactures zero-emission battery and hydrogen-electric vehicles. However, only the electric trucks are currently ready for delivery. The Company was hyped initially, but it has only gone downhill since then - thanks mainly to the full-bodied promises of the former CEO Milton. Among other things, he claimed that he had reduced hydrogen production costs by a whopping 80%. He has not yet proved this and is now on trial in New York.

    The accusation is that investors were misled. According to SEC investigations, the Company must pay a fine in the low three-digit million range. The Company, however, wants to get the money back from Milton. He should have money because he sold around 15 million shares in November alone. Nikola is trying to build its business and deliver on its promises despite the disruptive fire. It plans to deliver up to 25 electric trucks by the end of 2021. Strategic cooperation agreements have been signed with TC Energy and OPAL Fuels with the aim of optimizing the hydrogen refueling system. At the same time, production capacity is to be expanded to get the hydrogen-powered truck on the road after all.

    All this costs money, and the Company is slowly running out of it. Under the current conditions, it will not be easy to raise fresh capital. So the success of the first trucks is hugely vital for the Company. The stock may have formed a triple bottom at USD 9.02. If this mark can be held, a test of USD 15.56 is conceivable. For this, however, the Company needs positive news. The share is currently only interesting for hard-core gamblers.

    First Hydrogen - First demo vehicle completed

    First Hydrogen, which operated under the name Pure Extraction until the beginning of October, has recognized the signs of the times and has set itself the goal of becoming the leading manufacturer of zero-emission hydrogen-powered commercial vehicles in Europe and North America. To achieve this goal quickly and without detours, the Company has brought well-known partners on board. The hydrogen fuel cell technology comes from Ballard Power, which already has over 1,300 hydrogen-powered buses on the road. AVL Powertrain has been enlisted for the design. AVL develops, simulates and tests in the automotive industry and operates three fuel cell technology centers.

    On August 9, the TSX Venture Exchange approved the collaboration between the three parties. On October 18, First Hydrogen announced plans to build two hydrogen fuel cell-powered commercial vehicles for the UK market for demonstration purposes. Construction of the first vehicle was completed as early as October 21. The basis was a MAN eTGE, which Ballard converted to a hydrogen drive. The vehicle has a range of more than 500 km. This approach significantly reduces the development time and also saves costs.

    First Hydrogen UK Chairman Nicholas Wrigley's speech at a roundtable at the UN Climate Change Conference COP26 in Glasgow in November shows how well management is wired. There, ambitious targets were set for reducing emissions. The Company can play an interesting role in this if it is successful. Since November, the stock has traded in a narrow range between CAD 1.59 and CAD 1.85. The high for the year was CAD 2.41. The current price is CAD 1.60. As a result, the market capitalization is CAD 73.6 million, which compares favorably with other hydrogen companies.

    Plug Power - Many new cooperations

    Plug Power is probably the biggest player in the hydrogen sector. The Company's goal is to cover the entire value chain. If there are gaps, they are plugged through acquisitions or partnerships. At the same time, the Company is winning more and more orders worldwide. However, it has been active primarily in the domestic market recently. On December 14, a long-term supply and logistics agreement was signed with North America's leading natural gas transporter to further expand the hydrogen infrastructure. The Company wants to be prepared when hydrogen becomes attractively priced.

    On December 15, the group announced that it will work with Edison Motors on the mass production of hydrogen-powered buses. The Koreans will develop a prototype with Plug Power's fuel cell system and then move into mass production. Everything should be ready for mass production in the first half of 2023. If the collaboration is successful, trucks, drones and ships are expected to follow in the future. The acquisition of Frames Group also took place in December, giving the Company the know-how in the field of electrolyzers.

    From October 6 to November 22, the stock had a real rally. The stock rose from USD 24.60 to USD 46.50. Since then, the stock has been consolidating, closing the gap from October 13, bouncing from there and currently trading at USD 31.36. On the way down, the stock has formed a small downtrend even if the overriding trend is still long. As an interested investor, one should wait for a break of the downtrend line. The average price target of analysts is around USD 49.

    A mix of different approaches is needed to achieve the set climate targets. One of these is certainly hydrogen, and the prerequisite for success is to reduce the price of hydrogen significantly. Nikola is currently not yet able to deliver a hydrogen-powered truck. First Hydrogen, together with its strong partners, has built a first demo commercial vehicle. You can still get in on the early stages here. Plug Power is the top dog in the hydrogen market. After the setback, you can look for an entry if you believe in hydrogen.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses 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

    Related comments:

    Commented by Fabian Lorenz on April 16th, 2024 | 07:55 CEST

    Drumbeat at TUI! Caution with Renk and Nel! dynaCERT Stock with Potential!

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    Commented by Fabian Lorenz on April 16th, 2024 | 07:20 CEST

    Plug Power deeply in the red! Thyssenkrupp Nucera and First Hydrogen shares with positive newsflow and upside potential!

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    Not only is Plug Power's share price in the red, but also its earnings for the year 2023. Losses at the US company are still growing faster than revenue. Together with its struggling industry peer, Nel ASA, Plug is dragging down the entire hydrogen sector. However, there are positive developments. For example, the hydrogen-powered fuel cell commercial vehicle from First Hydrogen in England has impressed in test drives under real conditions. The Company is currently valued at only CAD 50 million and offers an entry opportunity. Analysts also see more than 100% upside potential for Thyssekrupp Nucera. Is the wheat separating from the chaff in the hydrogen sector?


    Commented by Armin Schulz on April 10th, 2024 | 07:30 CEST

    Nel ASA, First Hydrogen, Nikola - Hydrogen on the rise

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    With the development towards a clean and efficient logistics industry, hydrogen is gaining importance as a forward-looking energy carrier. Continuous innovations in fuel cell technology and storage systems are making it increasingly competitive. This technological progress, coupled with government incentives to expand the necessary infrastructure, is paving the way for widespread adaptation in the logistics sector. Pilot projects are already validating the practical suitability and paving the way for more extensive implementation in the logistics sector. Recently, there have been positive signals from the three hydrogen companies we are looking at today.