For me, the new year started off with a bang: While hydrogen and fuel cells had rarely been discussed at the many energy conferences held in past years, power-to-gas, electrolyzers and fuel cells are quickly seizing the spotlight these days. It’s very good news for technology suppliers listed on the stock exchange, especially for those mentioned below. The market has finally built enough momentum, and the public is taking note. Also, Tesla’s position as the leader of the field took a bit of a hit in 2018: Competition grew fiercer, with more and more businesses offering electric or hybrid models.
Take Hyundai and its Nexo. Power-to-X has become a hot topic as well. Two companies that stand to gain a lot from recent developments are Ballard and Hydrogenics. Their fuel cells are being used to power buses, trucks and railway vehicles, and their electrolyzers and fueling stations provide the required infrastructure.
Happy news for those who bought stock of Hydrogenics (Nasdaq: HYGS) in late 2018: The price has gone up by more than 70 percent since the last issue of H2-international was published. One reason for the boost has been Air Liquide’s acquisition of Hydrogenics shares in the amount of USD 20.5 million, netting the former a stake of around 20 percent in the latter. I expect the acquisition will result in synergies, considering Air Liquide, a French gas supplier, is certainly interested in Hydrogenics’ electrolyzer and fueling station technology. This partnership is very similar to the collaboration between Hydrogenics (corrected: Apr. 8th – translation error) and rolling stock manufacturer Alstom, which is planning to use fuel cells to power its latest generation of trains.
Another reason, besides the one mentioned above, is that Air Liquide awarded Hydrogenics a contract to build a 20-megawatt electrolyzer. This system is seen as the first step in constructing the world’s largest electrolyzer farm. It seems likely that this customer’s initial order won’t be its last but rather the first of many to come.
Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they may experience high stock volatility. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the content of this article reflects the author’s opinion only. This article focuses on mid-term and long-term prospects and not short-term profit. The author may own shares in any of the companies mentioned in it.
Written by Sven Jösting
Alstom “does not” have a collaboration with Ballard, it’s with Hydrogenics on the Fuel Cell Train.
This partnership is very similar to the collaboration between Ballard and rolling stock manufacturer Alstom, which is planning to use fuel cells to power its latest generation of trains.