Close menu




June 24th, 2021 | 11:59 CEST

Plug Power, NEL, Pure Extraction: Hydrogen on hold - here is what's next

  • Hydrogen
Photo credits: pixabay.com

Hydrogen is clean and suitable for storing large amounts of energy. Especially around trucks, ships and even airplanes, the technology is under discussion. Moreover, if the hydrogen is produced using renewable energies, the energy source is even essentially climate-neutral. Nevertheless, the sky is not currently full of violins for all hydrogen companies. Why? The competition is growing, and not every area of application is proving to have a promising future.

time to read: 3 minutes | Author: Nico Popp
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , NEL ASA NK-_20 | NO0010081235 , PURE EXTRACTION CORP. | CA74622J1012

Table of contents:


    Plug Power: Attention, a flash in the pan!

    The US company Plug Power recently published figures. Sales of USD 72 million were above expectations, but the Company also made more losses. At 12 cents per share, the Company is in the red. The fuel cell specialist focuses on distributed power and fleet vehicles and is considered one of the hottest hydrogen companies in the world. But the latest losses show that the market situation for hydrogen companies is not exactly rosy. Above all, the already very ambitious valuation is a cause for concern: Plug Power's shares are currently worth around EUR 17 billion on the stock market. Even given the growing competition, this is too much.

    Although the share price jumped in the wake of the figures, the results are by no means a glorious achievement. It is doubtful whether the stock will overcome the various technical resistances and return to better waters. Beyond the EUR 30.54 mark, investors can gain more hope on a closing price basis. Until then, selling pressure threatens.

    NEL: Comeback share without a comeback

    The NEL share has also experienced selling pressure. The Norwegian hydrogen specialist has been considered a comeback stock for weeks; however, the share price is still not gaining momentum. After the stock had achieved prices above the EUR 3 mark, the sell-off set in at the beginning of 2021. The share price fell in several waves. Above EUR 1.60, the share seems to have found a bottom, but there has been no real rebound so far - which can be interpreted as a warning signal. The share is currently worth EUR 2.6 billion - a fair value given the relatively manageable figures and a great deal of future fantasy. So the air is out of NEL for the time being.

    Even if shares like Plug Power or NEL do not seem very interesting at the moment, new conditions on the market, such as government subsidies or a technological breakthrough, could boost the values again. Shares in the hydrogen sector are driven primarily by a good deal of future fantasy. If this returns, the share prices can also accelerate again.

    Pure Extraction becomes First Hydrogen

    One hydrogen stock that is still in its infancy is Pure Extraction. The Company is already planning to change its name in a few weeks and will be called First Hydrogen. Although the stock still has a different name, work is already underway behind the scenes to shape the Company's future. First Hydrogen wants to put hydrogen-based vans on the road and has already gained two partners in Ballard Power and AVL. First Hydrogen is convinced that the global market for fuel cells will grow by more than 20% per year over the next few years. In particular, delivery services, for which small commercial vehicles have so far been used, could be put on the road in a climate-neutral and cost-effective manner thanks to hydrogen technology.

    Compared to electric vehicles with lithium-ion batteries, the Company promises greater efficiency and ranges between 400 and 600 kilometers. With a capital investment of EUR 2 million, a prototype is to be created to bring investors and customers closer to the benefits of the approach. The first steps towards commercial production are then to be taken in the fall of this year. First Hydrogen will rely on established suppliers. The share is currently valued at around EUR 87 million. Although the Company is still in its infancy, it is clear where First Hydrogen's journey could lead. Numerous delivery services and parcel delivery companies are currently working on their ESG profile. If the advantages over e-cars catch on, First Hydrogen could strike a chord with potential customers.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by André Will-Laudien on February 23rd, 2024 | 07:00 CET

    Will GreenTech soon be back in vogue? Nel ASA, Klimat X, Nordex, and Plug Power are under analyst scrutiny!

    • Sustainability
    • GreenTech
    • renewableenergies
    • Hydrogen

    Despite new record highs in global stock markets, the GreenTech sector has yet to show any gains. The hydrogen sector, in particular, which was hyped in 2020/21, has been struggling for the past three years. With share price losses of 70 to 90%, investors are hopeful that a bottom could be reached in the foreseeable future. We analyze whether this could already be the case and present an alternative in the form of Klimat X. Business is running smoothly here, and the CO2 savings are even certified.

    Read

    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.

    Read

    Commented by Armin Schulz on February 20th, 2024 | 07:45 CET

    ThyssenKrupp Nucera, dynaCERT, Plug Power - Hydrogen Stocks: Buy or Wait?

    • Hydrogen
    • Electromobility
    • greenhydrogen

    In light of global efforts to reduce CO2 emissions, hydrogen is coming into focus as a promising alternative in the transportation sector. The quick refueling times and greater ranges of hydrogen are particularly enticing, potentially solving the challenges of electromobility. Fleet operators must also become active, especially in response to the savings demanded by the government. Despite the clear potential for more sustainable mobility, hydrogen companies currently find themselves in a challenging situation on the stock markets, plagued by market uncertainties and the challenges of a nascent technology. Today, we look at three companies whose business is based on hydrogen.

    Read