24. March 2021 | 07:26 CET
Siemens Energy, Enapter, ThyssenKrupp - hydrogen or battery? It doesn't matter! Why these companies will profit in any case!
The strong fluctuations in the price of hydrogen shares are evidence of the current war of faith surrounding our planet's most common element, which is also the simplest in structure: one proton, one electron. Perfection can be so beautifully simple. And yet, it has the potential to change our society from the ground up - the sun shows us how. Admittedly, we are still at the beginning of this development. In the short term, the focus of the capital market is more on the element's practical applications. In this context, many investors are looking at the topic of mobility. What will prevail? Batteries? Hydrogen? One possible answer was recently given by the VW commercial vehicle holding Company Traton SE: a Solomonic "both." Batteries for long-distance traffic, hydrogen for buses, which cannot be recharged for long periods in between. But hydrogen is also of great importance for many other areas of application. That is why the worldwide demand for hydrogen as an energy carrier will increase massively in the next few years in any case. Aurora Energy Research foresees an eightfold increase in hydrogen demand to 2,500 TWh per year by 2050. This estimate corresponds to annual sales of more than EUR 120 billion. The following companies are likely to benefit from the boom quite independently of the development of electromobility.
time to read: 3 minutes by Carsten Mainitz
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Siemens Energy - Does the DAX rise give the share wings?
Since Monday, Siemens Energy has replaced the traditional Company Beiersdorf in the German leading index DAX. Those who had hoped that this would immediately lead to an upward movement of the previously rather weakening share price, for example, through re-buying index funds, were disappointed. The rise of the index had already been priced into the prices for a long time. As a result, the first trading day ended with a discount of around 4%.
From a "hydrogen perspective," the share is nevertheless interesting. The Group recently signed a contract with the French Company Air Liquide to develop hydrogen projects such as an offshore wind power plant for hydrogen production. This is part of the Company's strategy to move away from the construction of coal-fired power plants and to focus on sustainable energy sources in the future. And this gives the Company a good chance of receiving funds from the EU's EUR 672.5 billion Corona aid package, at least 37% of which must go toward climate protection technologies and projects.
As a thick ship in the German corporate landscape, the risks involved in investing in such a company should be manageable. The prospects for the future are good in any case, especially if Europe sticks to its goal of completely decarbonizing its industrial sector by 2050. The analysts also seem to see it this way and attest the share an average upside potential of around 23%.
Enapter - Get ready for takeoff!
Anyone in Germany who is seriously concerned with the topic of hydrogen will at some point come across the name Enapter. The Heidelberg-based startup has set itself the goal of making small-scale hydrogen production profitable. In doing so, the modular hydrogen generators (electrolysers) can be combined into larger units as needed. To increase profitability, the Company has dramatically improved the efficiency of the anion exchange membrane (AEM) technology that underlies its units and holds several international patents on it. After Enapter went public through a reverse IPO in mid-2020, the announcement of mass production of up to 100,000 hydrogen generators per year led to a share price explosion.
In an annual report underwritten by Corona later, the share price has initially consolidated somewhat. Nevertheless, the Company is still on the right track. Enapter has just commissioned the East Westphalian construction specialist GOLDBECK to plan its campus in the climate community of Saerbeck in Münsterland. The first modules are to be manufactured here from the end of 2022, and full production with around 300 employees is scheduled to start during 2023.
For the financing, Enapter recently carried out a capital increase of just under EUR 18 million at a price of EUR 22. The bank account should therefore be well filled at present. Risk-averse investors with an affinity for sustainable technologies currently have the opportunity to re-enter Enapter at a favorable price. The higher-than-anticipated order situation should be good for a renewed share price explosion if the Company proceeds according to plan.
ThyssenKrupp - Hydrogen as a beacon of hope
The corporate restructuring at ThyssenKrupp is progressing at a seven-league pace. Alongside green steel production, the hydrogen megatrend is also developing into an anchor of hope for chemical plant production. Uhde Chlorine Engineers, a chemical plant subsidiary held jointly with the Italian partner De Nora and currently the market leader in the production of electrolysis plants for Chlor-alkali production and recently on the Group's list for sale, will in future also be involved in the construction of hydrogen electrolysis plants.
As one of its first successes, the Company secured an order to construct an 88-megawatt plant from the Canadian Company Hydro-Quebéc back in January. According to the Group, the division is to be spun off and made independent to be able to operate more independently in the future. Furthermore, an expansion of the equipment capacities from currently one gigawatt to five gigawatts per year in the future is also planned to achieve market leadership in this area.
All these plans and developments are currently sending shareholders into raptures. The recent massive slump in some hydrogen stocks passed ThyssenKrupp by relatively unscathed. On the contrary, the stock gained an incredible 160% over the year. Nevertheless, there is still room for improvement. Analysts currently see an average target price of EUR 13.10. Anyone who wants to participate in the hydrogen boom but prefers to invest in an established company rather than a startup should take a closer look at ThyssenKrupp's stock.