Plug Power, dynaCERT, Daimler Truck – Now is the hour of blue hydrogen

Plug Power – Blue hydrogen as an opportunity under Trump

For Plug Power, the new energy policy under Donald Trump is a double-edged sword. In contrast to Joe Biden, who focused on green technologies, Donald Trump sees the future in fossil fuels and natural gas, which can be used to produce blue hydrogen. Since oil is produced in the US using the fracking method, which releases a large amount of natural gas, storing it as blue hydrogen makes sense. Demand for blue hydrogen is growing, particularly in states with a lot of oil, such as Texas. This could be an opportunity for Plug Power.

One question remains: Will the hydrogen player keep the USD 1.66 billion loan guarantee it received from the US Department of Energy on January 16? The Company plans to use this money to build up to 6 zero- or low-emission hydrogen production plants. Whether the funding will be frozen and how Trump's new policy will affect the Inflation Reduction Act (IRA) remains to be seen. If Plug Power is flexible enough and can adapt to the changing conditions, there is an opportunity to bring hydrogen technology back into focus, especially if the cost of hydrogen decreases.

On January 15, the Company announced that it had received an order from Allied Green Ammonia. A total of 3 gigawatts (GW) of electrolyser capacity is to be delivered to Australia for a green ammonia production plant. The electrolysers will be operated by a 4.5 GW solar plant. The outlook for Plug Power thus remains mixed. Political changes could complicate ambitious expansion plans. Nevertheless, long-term trends such as the growing demand for low-carbon energy solutions and international partnerships offer considerable potential. Blue hydrogen could also help to cushion economic and political headwinds and ensure long-term competitiveness. The stock is currently trading at USD 2.08.

dynaCERT – Optimizes diesel engines and saves money

dynaCERT has developed a way to improve the efficiency of diesel engines by injecting hydrogen and oxygen into the combustion process using its patented HydraGEN™ technology. This cleaner combustion significantly reduces greenhouse gas emissions. Not only are emissions reduced, but fuel consumption is also lowered, and the service life of the engine is increased. This means that fleet operators already have the opportunity to equip their vehicles with environmentally friendly technology while saving money. The payback period is less than one year. Through the received Verra certification, both dynaCERT and its customers receive CO2 credits.

This year, the dynaCERT system was again represented in the renowned Dakar Rally Classic Truck Race. The Company is supporting the French team "Normandy Racing Solutions" with two vehicles. Last year, the vehicle with HydraGEN™ technology finished in 3rd place. This marketing campaign showcases the technology's capabilities and can thus increase market relevance. In December, dynaCERT reported increased demand and was able to add several follow-up orders to its order book, which points to growing customer satisfaction.

At the beginning of January, the Company announced the appointment of Seth Baruch to its advisory board. He brings expertise in the field of sustainability and has already successfully completed several projects related to CO2 reduction. In addition, dynaCERT is working with Carbonomics LLC on the implementation of Verra projects. The coming quarterly figures will show how much growth has accelerated. The business model will become even more interesting as soon as additional income is generated from the CO2 certificates. In the long term, the old high of CAD 1.25 could be targeted again. Currently, the share is trading at CAD 0.17.

Daimler Truck – Only in electric vehicles is there growth

Daimler Truck is one of the leading commercial vehicle manufacturers, but it was relatively weak last year. A total of 460,409 trucks and buses were sold, which corresponds to a minus of 12% compared to the previous year. The Company had particular problems in Europe, where sales fell from 158,511 in the previous year to 126,477, corresponding to a drop of almost 20%. Trucks Asia also recorded losses, while business in North America remained largely stable. By contrast, battery-electric vehicles remain a growth area, with sales increasing by 17% to 4,035 units. The hydrogen truck, which is currently being developed, may provide more of a boost.

One of the bright spots is a significant order from Amazon, which has ordered 200 eActros 600 trucks – the largest order for electric trucks in the Company's history to date. These vehicles, which have a range of 500 km, will be used primarily in the UK and Germany in the "middle mile" between logistics centers and cities. Supported by a growing network of fast-charging stations, Amazon aims to promote climate-friendly logistics. This order highlights the Company's potential, especially in the growth market for electric commercial vehicles.

Analysts at Jeffries and JPMorgan view the stock as a buy and have issued price targets of EUR 50 and EUR 56, respectively. The experts are confident that the Company offers positive long-term prospects despite the weaker truck market in Europe and an expected decline in revenue in the fourth quarter. The figures for the fourth quarter are expected on March 14. A total of 41,943,097 shares have been bought back since the share buyback program was launched on January 17. The stock is currently available for EUR 39.91.

The new US energy policy will initially only affect companies in the US. For Plug Power, it will depend on whether the Company can integrate blue hydrogen into its corporate philosophy. In that case, the loan guarantee of the US Department of Energy will continue. dynaCERT offers fleet operators the opportunity to significantly reduce costs and improve their carbon footprint. Here, one should pay close attention to the upcoming quarterly figures. Daimler Truck had a weak year. There was only growth in sales of electric vehicles.