June 22nd, 2023 | 07:15 CEST
Second hydrogen wave launched - Plug Power, dynaCERT, Ballard Power
It is well known that green hydrogen has been identified by both industry and politicians alike as a key element for the energy transition. At the beginning of the decade, shares in the sector became the new darlings of the stock market and were given advance praise and valuations in the billions. However, the sector is still struggling with problems such as the high price of gas and the still undeveloped infrastructure. As a result, even market leaders in the sector have lost more than 50% of their stock market value. This presents a long-term opportunity to participate in the future market of hydrogen.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , DYNACERT INC. | CA26780A1084 , BALLARD PWR SYS | CA0585861085
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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dynaCERT - Optimistic statements
""Pay attention to the news", preached the CEO of dynaCERT, Jim Payne, during his presentation on the occasion of the "1st Hydrogen Day"* last week. The experienced company leader expects further orders after the publication of the first large order with an estimated volume of CAD 12 million. Talks with potential customers are well advanced and should be announced soon. Payne was equally optimistic when asked about the final admission to Verra's Verified Carbon Standard program, the most widespread global program for offsetting greenhouse gas savings. The inclusion will provide dynaCERT with additional revenue and recurring income from trading carbon credits.
Another ace was secured by dynaCERT through cooperation with Cipher Neutron. Cipher Neutron focuses on electrolysers for the production of green hydrogen and reversible fuel cells for energy generation and storage solutions. The products developed to date offer significant advantages over other hydrogen production, power generation and energy storage solutions.
The AAM Green Electrolyser partner announced a Letter of Intent with Technomak, a leading provider of onshore and offshore wind and turbine technologies. The MOU calls for Cipher Neutron to produce state-of-the-art AAM Green Electrolysers to produce green hydrogen for Technomak's own facilities and those of its customers worldwide.
On Thursday, June 29, dynaCERT will hold its AGM. It is not unlikely that CEO Jim Payne has a surprise in store for shareholders.
Plug Power - With euphoria into the future
Similar to the CEO of dynaCERT, the CEO of the fuel cell pioneer Plug Power, Andy Marsh, is also euphoric. On the occasion of the specially organised Analyst Day at the state-of-the-art Gigafactory in Rochester, New York, Marsh explains that the US company has built up its vertically integrated hydrogen business, which should quickly establish itself on the world market. With its commitment, the Company has positioned itself as a market leader in the green hydrogen industry, focusing on the construction, sale, and deployment of real products.
Despite a sobering first quarter with revenues of around USD 210 million and a net loss of the same magnitude, the CEO trusts his group to hit the big time this year and expects full-year revenues of up to USD 1.4 billion with a positive gross margin. By the end of the decade, revenues should grow by 50% annually to at least USD 20 billion by 2030.
By the end of the decade, Plug Power aims to produce more than 2,000 tonnes of hydrogen per day from its green hydrogen network and deploy a gigawatt of stationary power generation products. Other visions include the delivery of 5 GW of electrolysers per year and 500,000 fuel cell-powered forklifts.
It is evident to every investor that this can only be achieved with further capital measures. Plug Power, for example, plans to invest around USD 1 billion in the development of hydrogen solutions. However, the Company is not planning an equity increase this time. Instead, it is exploring solutions through other instruments such as project financing, project-based equity capital, corporate bonds, and financing options with the Ministry of Energy.
Ballard Power - Plant disruption
In the wake of the hydrogen hype in recent weeks, the shares of the Canadian producer of fuel cells based in Burnaby near Vancouver also rose by more than 40% to an interim high of USD 5.68. However, they were unable to defend this increase and are currently hovering around a marked resistance area at USD 4.43, with the sell-off taking place on high volume. Therefore, a further decline and test of the year's lows might not be unlikely. This would be supported with sell signals from both MACD and RSI.
Operationally, Ballard Power is planning a "disruptive production technology" with the next generation of its advanced graphite bipolar plates. These are said to be far thinner and more flexible, significantly reducing material volume. They also allow for high power density in stack configurations, which are critical for certain markets. Thus, costs are said to be significantly reduced with increased production capacity. Cost savings are expected to be over 70% by the middle of the decade.
The mood in the industry seems euphoric. Both Plug Power and dynaCERT expect significantly higher orders and a breakthrough in the green hydrogen sector. Ballard Power, meanwhile, is planning a revolution in its manufacturing technology.
Conflict of interest
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