Plug Power, First Hydrogen, thyssenkrupp – Has the bottom been found?

Plug Power – Demand for green hydrogen is increasing

The outlook for hydrogen vehicles in the US and internationally is positive. Industry analyses predict that the market for hydrogen-powered trucks will grow significantly in the coming years. Bosch sees a global market penetration of 10% for new heavy-duty commercial vehicles by 2035. This trend is supported by partnerships between companies such as BMW and Toyota, who are working together on the next generation of fuel cell powertrains. These developments suggest that Plug Power could benefit from the growing demand for electrolysers and fuel cells.

This fits with the news that Plug Power has secured a 25-megawatt (MW) order for electrolysers from a BP-Iberdrola joint venture for a Spanish hydrogen project. The electrolysers are designed to reduce the CO2 emissions of a refinery by 23,000 tons per year. The order includes five 5 MW units with the potential for expansion to 2 gigawatts. In addition, the demand for green hydrogen is increasing significantly due to the increase in the number of vehicles on the road. The Company began producing its own green hydrogen this year, contributing to its recent revenue growth.

Plug Power is using innovative financing strategies to fund its expansion plans. The introduction of a new platform for leasing hydrogen facilities supports the raising of capital while also offering customers financing solutions. With a goal of over USD 150 million from leasing transactions, the Company is strengthening its financial base while maintaining control over its hydrogen infrastructure. Such strategic financing measures are designed to ensure recurring revenues for Plug Power over the long term and to bind customers to the group. Due to the FED's interest rate cut, the stock climbed from USD 1.61 to the current USD 2.25.

First Hydrogen – Europe and North America in its sights

First Hydrogen has positioned itself as a pioneer in the green hydrogen sector. With headquarters in Vancouver and additional locations in Montreal, London, and soon in Germany, the Company is pursuing the vision of creating a fully integrated ecosystem for emission-free mobility. The focus is on the development and commercialization of hydrogen-powered commercial vehicles and the manufacturing of hydrogen solutions and components. Through strategic partnerships and innovative technologies, First Hydrogen aims to penetrate the green mobility market worldwide.

On September 9, 2024, First Hydrogen announced its plans to expand into Europe, with Germany being identified as the first target market. Germany was chosen for its strong automotive industry, which fits seamlessly with First Hydrogen's strategy of integrating its fuel cell drive into existing vehicle platforms. The Company has already made significant progress and plans to open an office in Germany to coordinate the local market launch. This step is supported by international partners in the renewable energy and infrastructure sectors.

The next logical step is the development of a left-hand drive version of its fuel cell vehicle. This follows the successful real-world testing of the vehicle in the UK. The move should enable entry into European and North and South American markets. In Canada, the Company plans to build a production facility capable of producing 25,000 vehicles per year and a 35 MW plant for the production of green hydrogen. These steps should enable First Hydrogen to benefit from the increasing demand for sustainable transportation solutions. After a long dry spell for shareholders, the stock now appears to be bottoming out and is currently trading at CAD 0.40.

thyssenkrupp – Green steel through hydrogen?

thyssenkrupp is facing significant problems in its traditional steel division. After the lucrative sale of the elevator division, the billions raised have largely been used up, while the challenges continue to intensify. Massive overcapacity and high energy costs in Germany are causing trouble for the Company, while internal conflicts are causing additional unrest. Attempts to arouse investor interest in selling steel mill shares have been unsuccessful. In addition, tensions are palpable between the Company management and the major shareholder, the Alfried Krupp von Bohlen und Halbach Foundation, as the latter needs the profits for charitable purposes.

The transformation to green steel should serve as the lifeline for thyssenkrupp's struggling steel division. The plans to produce climate-neutral steel are supported by federal funding – a total of EUR 2 billion should enable the construction of a modern direct reduction plant in Duisburg. However, rising costs are jeopardizing the ambitious project, which is currently undergoing a critical review by the group. Despite the financial commitments, there are uncertainties regarding economic viability, while political pressure to push ahead with the green transformation in the Ruhr area remains. Otherwise, the group is expected to repay funds.

The challenges in the steel industry are complex and require innovative solutions. The green transformation could give thyssenkrupp a competitive advantage and reduce CO₂ emissions in the long term. Nevertheless, the uncertainties are considerable, both in terms of costs and technological implementation. The resignation of several top executives from thyssenkrupp Steel and the stepping down of Sigmar Gabriel, head of the supervisory board of the steel subsidiary, add further uncertainty. Moreover, accusations against CEO Miguel Lopez paint a poor picture of the Company's management. The stock reacted accordingly, entering a downward spiral. Even though the stock has recovered from its low of EUR 2.768, the current price of EUR 3.256 corresponds to a market capitalization of just EUR 2 billion.

The hydrogen industry is showing promising signs of an upturn. Plug Power is benefiting from increasing demand and innovative financing strategies to strengthen its market position. With a significant order in Spain, Plug Power is highlighting its growth potential. First Hydrogen seeks to establish itself in the green mobility market with an expansion into Europe, particularly into Germany. The development of left-hand drive fuel cell vehicles supports this goal. thyssenkrupp is currently evaluating whether the production of green steel will serve as a lifeline for its ailing steel division. Despite federal financial assistance, economic viability remains uncertain.