July 6th, 2022 | 12:16 CEST
Plug Power, dynaCERT, Daimler Truck - Hydrogen market gets hot again
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
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.
Plug Power - Large orders from Europe
The American Company Plug Power offers the complete value chain in the hydrogen sector. It originally started with turnkey hydrogen fuel cell solutions, of which it has already put more than 50,000 into operation. As a result of the increasing importance of climate protection and the associated reductions in CO2 emissions, green hydrogen is a potential solution for energy-hungry industries and freight transport that has to cover long distances. Here hydrogen can score points with fast refueling and a longer range.
The Group counts the logistics centers of Amazon, Walmart and Carrefour among its customers, and it is becoming increasingly apparent that it is building up customers and contacts worldwide. The latest company news fits in with this. On May 17, the Company received an order to deliver a 1 gigawatt electrolyzer to H2 Energy Europe in Denmark. Using offshore wind energy, up to 100,000 tons of green hydrogen per year are to be produced. On June 8, it was announced that the Group would build a green hydrogen plant in the port of Antwerp-Bruges that will produce 12,500 tons annually.
A comprehensive analysis of Plug Power can be found at researchanalyst.com. Despite a prominent position in the hydrogen market, the share has been dragged down with the overall market. The stock hit its low for the year on May 12 at USD 12.70. Since then, the stock has been running sideways and is currently trading at USD 17.18. American analysts from JPMorgan and other analyst firms see the price target between USD 28 and 44. At the moment, value rather than growth stocks are the order of the day, but that can change quickly as soon as the price of green hydrogen drops. Then profitability will be reached much faster.
dynaCERT - IAA Transportation the next big target
dynaCERT has long been active in the market with its patented HydraGEN technology. But just as the Company was about to take off, the Corona Crisis came out of the blue. Big plans could not be realized under these circumstances. Yet the technology is ideal for reducing emissions from diesel burners. The system produces hydrogen and oxygen gases from distilled water and delivers them to the engine's air intake, allowing it to burn cleaner and produce fewer emissions. The result is more power, lower fuel consumption and longer engine life.
Management decided to work with Verra during the Corona period to become a certified VCS project. Currently, the Company is waiting to hear back from Verra, which is working with independent verifiers to verify the emissions savings. With the Verra Verified Carbon Standard seal, customers of dynaCERT will have the opportunity to obtain CO2 certificates, which would significantly increase their CO2 balance. The Company's own HydraLytica software measures the savings. There have also been other positive signals recently. The Canadian government is offering a 30% tax credit to companies that invest in clean technologies. On May 26, mining operations in Peru, Argentina and Brazil were equipped with dynaCERT technology. The sales partner, H2 Tek, was in charge of this project.
On May 19, Simply Green Distributors was added to the list of distributors. The next big event is the IAA Transportation in Hannover, where dynaCERT will be represented. Here it will be possible to demonstrate the technology to a broad professional audience. Like many other hydrogen stocks, the stock has been on a downward trend since January 2021. From CAD 0.86 it went down to CAD 0.075. From there, the rebound started up to currently CAD 0.13. Now, it is waiting for the report from Verra. If the certification is received, the share will jump quickly. Conservative investors are waiting for the news.
Daimler Truck - Into the future with hydrogen trucks too
Daimler Truck was convinced for a long time that electric trucks would replace combustion engines. The disadvantage of these electric vehicles was the short range, the lower loading capacity and the longer refueling times. E-trucks are now available. On the other hand, there has been a rethink on hydrogen and the Group is planning a two-track approach. Hydrogen trucks with a fuel cell are now the solution for long distances. The first prototypes are in the test phase and should be ready for delivery by 2025, with a range of around 1,000km.
Together with Volvo as a partner, cellcentric has been founded. The Company plans to build a fuel cell factory in Weilheim an der Teck. Since May, the Company has been working with Cummins to serve the American market. But that is not enough. If you want to introduce a new technology to the market, you need the proper infrastructure. To this end, an agreement has been reached with the major oil multinationals BP and Shell to set up a network of hydrogen filling stations. The dual strategy of focusing on electric vehicles and hydrogen is smart because it equips the Company for the future.
The transport industry must stretch itself to meet the EU's climate targets. By 2030, the industry is expected to cut CO2 emissions by at least 30% compared to 2020. Currently, the stock market is dominated by the fear of recession. Daimler Truck is also feeling the effects, with its shares now trading below the price of the stock market debut. The price is currently at EUR 24.29. It would be a positive signal if the share could defend EUR 23.00 on a closing price basis. Marshall Wace has recently established a short position in the amount of 0.50% of the shares. One should observe whether this position will be reduced or removed.
Although many countries support climate protection and provide subsidies in the hydrogen sector, the entire industry suffers from the overall market environment. Even the globally networked top dog Plug Power is not really getting off the ground at the moment. At dynaCERT, we can look forward to the response from the IAA Transportation. At Daimler Truck, too, a lot depends on whether there will be a recession. If there is no recession, the hydrogen market could take off again.
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