August 6th, 2021 | 10:27 CEST
Pure Extraction, Ballard Power, TotalEnergies - Hydrogen: New Opportunities!
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"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
Pure Extraction - That is quite an announcement
The Canadians will be rebranding themselves as First Hydrogen in the next few weeks. First Hydrogen was initially a subsidiary of the Group, but now the name, along with innovative solutions, is set to be the program. The Company intends to do no less than revolutionize the market for zero-emission delivery vehicles. Within a year, it wants to use a "best of" approach to develop a prototype zero-emission delivery van based on hydrogen fuel cell technology.
To get the horsepower on the road, the Company has partnered with two strong players. First among the trio is Ballard Power. The world market leader is providing the fuel cell technology. AVL is taking on the part of powertrain development and testing for the design and manufacture of the prototype based on a proven chassis. The estimated cost of developing the prototype is CAD 2 million.
Of course, that is a lot of future talk. On the other hand, the Company is currently valued at only CAD 62 million on the stock market. But the potential is enormous. With two such well-known partners on board, the chance of an innovative breakthrough increases enormously and at a very manageable cost. Should a marketable product emerge, a revaluation of the share is inevitable. Investors willing to take risks should take advantage of this opportunity.
BALLARD POWER SYSTEMS INC - New milestone
This fuel cell pioneer was founded back in 1979. The fuel cells produced since the beginning have already covered more than 80 million kilometers in more than 20 countries. That is an impressive achievement. Now, a new milestone is being set with the entry into series production of fuel cells for buses.
The Canadians are working tirelessly on further efficiency improvements. The goal is to achieve higher efficiency and lower costs. In this regard, the Company recently announced a strategic partnership with the US industrial Company W.L. Gore. The latter supplies a more efficient membrane that significantly extends the service life of Ballard's fuel cells.
The papers have corrected significantly this year. From the February high at CAD 52, the stock has slumped to just under CAD 20 at present. This jump has reduced the market value to CAD 5.7 billion. The Company is currently not operating profitably. According to analysts' estimates, it will still be in the red next year. Sales are expected to grow to CAD 101 million in 2021 and CAD 142 million the following year. The experts see an upside potential of around 20% at the current share price level.
TOTALENERGIES SE - Analysts advise to buy
TotalEnergies opened the first hydrogen filling station in Germany back in 2002 and is thus clearly one of the pioneers in the field of hydrogen mobility. The Group is a member of the H2 Mobility consortium, which has so far built 91 hydrogen filling stations in Germany, more than a quarter of which have been implemented by the French Company. The consortium has set itself the goal of establishing a nationwide hydrogen infrastructure in Germany.
The share of green technologies in the business activities of the Group, which is particularly active in oil and gas production, is still manageable. But that will change in the future. TotalEnergies is consistently expanding its commitment to new and alternative energy sources such as biofuels, electricity and hydrogen in the transportation sector and new concepts in mobility. Valuation-wise, the stock is worth considering given a 2022 P/E of 8 and a dividend yield of 7%. On average, analysts calculate an upside potential for the share of just under 30%.
Hydrogen has the serious potential to revolutionize mobility. Initially, the focus will be on applications in larger commercial vehicles. With further efficiency improvements and cost reductions, market penetration will gradually increase. Investors can benefit from this development with the shares presented. Investors can either focus on large, already established companies such as Ballard Power or TotalEnergies, or on a potential game-changer, which is what Pure Extraction stands for. If the Company's prototype is successful, a revaluation of the stock should begin.
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