SFC Energy, Enapter, Everfuel - The hydrogen of the future

Enapter AG - Further promotion

Green hydrogen is the missing piece of the puzzle for the energy transition. Only the cost-intensive production and transport still hinder the big breakthrough. However, according to industry experts, the prices should drop by up to 50% by implementing wind or solar energy, making green hydrogen cheaper than diesel. That is the vision that technology leader Enapter AG is pursuing with Anion Exchange Membrane (AEM) electrolysis, which can produce green hydrogen. The technology enables the construction of efficient, cost-effective, standardized electrolyzers and stacks that can be scaled up to larger units through modular construction.

Enapter's proprietary Energy Management System software ensures easy operation, control and monitoring, and high compatibility. Patents and strong in-house research and development capabilities give Enapter a sustainable competitive advantage. The Heidelberg-based Company is supported in this by the German federal and state governments.

The Ministry of Economic Affairs, Innovation, Digitalization & Energy of the State of North Rhine-Westphalia gave EUR 9.36 million from its funding pots to develop the planned mass production of the electrolyzers on the Enapter campus in Saerbeck. Another EUR 5.6 million in funding from the Federal Ministry of Research was added at the beginning of July for the new "AEM Multicore" electrolyzers being developed in cooperation with Münster University of Applied Sciences.

According to current plans, the innovative system will be launched on the market as early as next year. "With the AEM electrolysis technology, we could achieve the goal of low-cost production of green hydrogen. Germany is the home of the technology leader for AEM. That is why we are all the more pleased to drive the market launch of this innovative product," said Anja Karliczek, Federal Minister of Education and Research.

At the Enapter Campus in the climate community of Saerbeck, which is scheduled to go into operation by 2022 at the latest, the modular systems for the production of green hydrogen are to be manufactured and further developed in large quantities in the future, with 100,000 AEM electrolyzer units expected per year. By then, at the latest, Enapter's technological lead should be apparent. The Company currently has a market capitalization of EUR 601 million, which is still a long way from comparable companies such as Nel ASA, which weighs in at EUR 2.4 billion.

Everfuel - Strong partners

Even the former subsidiary of Nel ASA, Everfuel, which went public through a spin-off last fall, has an impressive market capitalization of EUR 543.50 million. Unlike Enapter, it can boast neither technology leadership nor its own patent series. On the other hand, the Company's Swedish subsidiary, Everfuel Sweden AB, announced that it has signed a cooperation agreement with OKQ8.

OKQ8 is a leading Swedish fuel company with more than 400 filling stations. Together, the partners aim to develop the green hydrogen market in Sweden by building a network of H2 stations for zero-emission mobility in conjunction with existing and new OKQ8 refueling stations. The hydrogen station network will target leading locations for intensive and heavy-duty customers and be open to passenger vehicles. Initially, the larger cities and transport corridors between Stockholm, Malmö and Gothenburg will be covered.

In addition to the joint venture in Sweden, a partnership has also been signed with Greenstat AS to develop a commercially competitive hydrogen supply for zero-emission mobility by rail, road and sea in Norway. Everfuel's stock is bottoming out after a major correction and is trading at EUR 7.01. A buy signal would result from a sustained breakout above the EUR 7.25 mark.

SFC Energy - Relative strength

While the broad mass of shares in the hydrogen sector lost more than 50% of their value in some cases, the SFC Energy share showed relative strength and, after testing the support zone at EUR 26, is moving back towards its all-time high at around EUR 32.

The Company is getting a tailwind from a buy recommendation from the investment house Metzler. The analysts have raised their price target from EUR 33.0 to EUR 36.0. Metzler anticipates sales in the region of EUR 66 million for the full year, nearly doubling to around EUR 125 million in 2022. On the earnings side, the experts still expect a loss of EUR 0.07 for the current year, but earnings per share of EUR 0.26 in 2022.

Green hydrogen is becoming an essential building block for the decarbonization of the economy and thus the energy transition. As the market leader, Enapter's anion exchange membrane electrolysis, which can produce green hydrogen, is promising long-term. At current levels, fuel cell specialist SFC Energy is also promising. In the case of Everfuel, we advise waiting for the buy signal.