Close menu




March 18th, 2022 | 12:30 CET

Plug Power, dynaCERT, Nel ASA - Hydrogen market worth billions

  • Hydrogen
Photo credits: pixabay.com

The German government wants to become independent of Russian energy imports as soon as possible. One way to achieve this could be green hydrogen. Markus Söder recently called for more hydrogen pipelines to be built quickly. It is no wonder as it is a long way from wind farms in the north or ports in the Netherlands to Bavaria. Interest in hydrogen in Europe is high. The EU Commission wants to increase hydrogen production to 25 gigawatts by 2030. Already in February Goldman Sachs drew attention to the hydrogen topic. It considers hydrogen to be an important factor on the way to a zero-emission economy and expects the industry to grow strongly. The Ukraine crisis gives a corresponding tailwind.

time to read: 4 minutes | Author: Armin Schulz
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084

Table of contents:


    Plug Power - CEO talks to important people in the EU

    Plug Power is the top dog in the hydrogen market. The Company is now networked worldwide due to its various projects. The Ukraine crisis could boost the share, as the EU has raised its REPowerEU targets from 10 to 25 gigawatts for hydrogen production by 2030. Politicians are getting information first hand, as CEO Andy Marsh tweeted on March 15: "Having dinner tonight with members of the Atlantic Council in Brussels and meetings tomorrow with EU leadership." On March 16, Plug Power's Twitter account featured a photo of Andy Marsh and the Belgian Minister of Energy.

    To get a piece of the pie, you need access to Europe, and Plug Power has that with its European headquarters in Duisburg and its joint ventures with Renault and Acciona. The Company is also investing in other ways to expand its product portfolio. In order to gain access to the technology for liquefying hydrogen, Joule Processing was acquired. It offers the opportunity to optimize transport and save costs. The purchase price of USD 30 million is reasonable. If the technology is successful, the price could rise by USD 100 million, a price that would then be justifiable.

    The current market environment should play right into the hands of the hydrogen companies and especially Plug Power. The share price, which formed an initial slight upward trend after the start of the Ukraine conflict, also shows this. This trend would only have been broken with closing prices below USD 18.30. Currently, the share price stands at USD 24. It will be interesting to see whether Andy Marsh's dinner will result in positive news for the Company.

    dynaCERT - 28% increase in recent days

    The road will be rocky until the entire logistics fleet worldwide has switched to hydrogen. Hydrogen offers the advantage of faster refueling time and more power and thus currently has the edge over the electric approach in heavy-duty operations. Against the background of the current high diesel prices, dynaCERT offers an interesting alternative. The Company sells and installs transportable hydrogen generator retrofit products called HydraGEN. The advantage of the patented system lies in reduced fuel consumption, longer engine life and overall lower emissions. The retrofit unit produces hydrogen and oxygen on demand and optimizes injection using HydraLytica software.

    This software is at the heart of the plan for users to receive CO2 certificates in the future when they use HydraGEN, adding value to the customer's carbon footprint. Together with Verra, they are working to meet the standards of the Verified Carbon Program. Tesla has already shown that it is possible to make a lot of money with these certificates. While waiting for the completion of the program, there has been a slight change in personnel. As announced in December, Chief Operating Officer Robert Maier left dynaCERT on January 5. On February 15, the Company announced the resignation of board member Stephen Kukucha. It is currently unclear whether the vacant positions will be filled.

    The Company has great potential but has been set back by Corona. It has a good product and an extremely exciting approach to CO2 allowances that was pushed during Corona, but so far, the positive news is missing. If the Company gets its horsepower on the road, nothing stands in the way of a turnaround. The fact is, the Company must deliver because the stock has fallen from CAD 0.86 to CAD 0.15. What is striking is that the stock has gained over 28% since March 4. Currently, it is trading at CAD 0.20. Perhaps some good news is in store here soon.

    Nel ASA - Increase in production capacity

    In Europe, Nel ASA is a big player in the hydrogen sector. However, despite the shareholders' joy with the stock in 2020, the share saw its high point on January 8, 2021. After that, it went down more than 70%. Now that the EU is looking for alternatives to Russian energy imports, the share could move away from its lows. The main reason is the subsidies from the EU, which can help the Company finally get into the profit zone. The last quarterly figures were disappointing.

    Recently, the Company was able to score with good news. On March 17, an order from Solar Foods was announced. The food producer will receive an alkaline electrolyzer system. The Company can now also supply larger quantities of electrolyzers. According to the March 10 announcement, the new fully automated production facility can produce up to 500 megawatts of electrolyzers. An increase in capacity up to 2 gigawatts is also already planned. The order books are full, so the Company can now show that it is getting its act together.

    On the negative side, members of management have repeatedly sold shares recently. CEO Jon Andre Lokke sold 1 million shares at an average of 12.8643 Norwegian kroner (NOK). On March 3, Finn Jebsen sold 260,000 shares at an average of NOK 15.0523. An initial uptrend was formed after the stock retested support at NOK 11 on February 24. Closing prices below NOK 12.58 would break the upward trend. The hydrogen market is volatile, so paying attention to your stop limits is essential. Fundamentally, the share is still expensive.


    The political climate is favorable for the hydrogen market, but one should be on guard. All three companies are not making money yet. The most significant hydrogen player is Plug Power. If the technology catches on and the price of hydrogen drops, the share should be in the portfolio. For the transition, dynaCERT is a good choice because the extremely high fuel prices mean that a retrofit system quickly pays for itself. Nel ASA must now use the tailwind to get on the road to success.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    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 Armin Schulz on March 28th, 2024 | 08:45 CET

    TUI, dynaCERT, Evotec - The profit is in buying

    • Hydrogen
    • greenhydrogen
    • travel
    • Biotechnology

    In the world of the financial markets, the timeless maxim applies: "The profit is in buying". This tried and tested stock market adage, which may seem trivial at first glance, is actually the key to financial success. Indeed, the price at which an investment is purchased often determines its subsequent triumph or failure long before the sale is even considered. Despite advances in technology and the complexity of markets, the basic lesson remains - buying wisely and at a well-considered price lays the foundation for profits. We have picked out three interesting candidates.

    Read

    Commented by Stefan Feulner on March 26th, 2024 | 07:15 CET

    BYD, First Hydrogen, XPeng - When will the rebound follow?

    • Hydrogen
    • greenhydrogen
    • Electromobility

    In addition to the DAX and the Dow Jones, the technology-heavy Nasdaq also celebrated another all-time high. With three more interest rate cuts forecasted by the Fed for this year, there is still significant upside potential for the more capital-intensive stocks. The rally is mainly being driven by the Magnificent Seven. Behind them are promising companies that are still lagging far behind their price potential.

    Read

    Commented by Juliane Zielonka on March 21st, 2024 | 06:45 CET

    Energy in transition: RWE, Kraken Energy, and Plug Power in focus

    • renewableenergies
    • fossilfuels
    • Hydrogen

    The energy sector remains in flux. RWE was able to double its adjusted EBITDA. CEO Markus Krebber, who has been in office since 2021, is doing everything he can to make the energy giant fit for renewable energies. Under the term "Phaseout Technologies," he aims to bid farewell to nuclear energy and fossil fuels. However, nuclear energy is a low-carbon and adequate supply for many industrialized nations. There are 93 reactors in the USA alone, which account for 20% of the national energy supply. This is reason enough for Kraken Energy to explore uranium deposits in the US in order to establish the shortest possible supply chains. The US is also a pioneer in hydrogen technologies. Plug Power can, therefore, look forward to a considerable amount of government funding and is becoming a job engine...

    Read