Contact

Plug Power – new manager comes from Tesla

By

October 15, 2021

Image titel:

Sources:

Plug Power – new manager comes from Tesla

With US$ 5 billion in the bank, Plug can position itself perfectly in the hydrogen and fuel cell theme complex. This includes its own H2 production as well as the development of alliances, such as the most recent one with Renault. And it is advisable – in my opinion – to reduce the one-sided focus on the market for forklift trucks (material handling), since the major manufacturers such as Toyota and Kion are pursuing their own hydrogen strategy in the future and the devices of future generations will already have a fuel cell system included, so that the conversion or expansion of a battery is not necessary.

Major customers like Walmart and Amazon have also shown that they are smart partners (supposed billions in profits from warrants), giving Plug orders but leaving many costs and risks with Plug as well. The sector of H2 filling stations is exciting, as Plug has extensive know-how here and should enter production or could plan to do so (comparable to companies such as Nel Asa), because a very large market is foreseeably emerging here, which is only just beginning. One positive aspect is that top talents are bought in, such as David Mindmind, who was responsible for setting up production in Nevada at Tesla. He is now Head of Global Manufacturing at Plug.

Advertisements

Plug has entered into a Purchase Power Agreement (PPA) with Apex Clean Energy – a leading operator of wind and solar parks in the USA (not to be confused with the Rostock-based Apex Group) – to supply 345 MW of wind power for the joint production of hydrogen. This first project will certainly be followed by others, as Plug plans to produce first 500 and then 1,000 tonnes of hydrogen per day itself in a few years.

Reports on the second quarter
Orders for the conversion of forklift trucks (battery out, fuel cell system in) are not as relevant to me as it is portrayed. This is because these incoming orders (billings) have so far come mainly from companies such as Amazon or Walmart and have so far not had a convincing profit margin, but have mainly served to symbolically represent large orders. The only thing that is important is whether a profit is made with the hydrogen, the consumable (liquid, gaseous), which is produced by the company itself in the future. I wouldn’t see Billings as the main reason for investing in Plug, even though that always sounds huge. At the end of the day, what counts is what is earned. Plug has to prove that the business model is profitable – as simple as that. For 2021, US$ 500 million in billings are to come, and then US$ 750 million in 2022. In the second quarter, turnover was US$ 124.6 million. The bottom line was a loss per share of US$ 0.18 (a loss of US$ 0.07 per share was expected).
Conclusion: At US$ 5 billion, Plug’s positioning in the hydrogen market is well represented. This includes the development of its own production and infrastructure (H2 filling stations) as well as new growth impulses through its own electrolyser production. Some additional acquisition will certainly come along – I would see an investment in Nikola Motors as a target for Plug. Among other things, a joint H2 filling station network could be set up and, in addition to the plans for vans, large commercial vehicles, where hydrogen is becoming a very big issue (bigger than for light trucks or vans) (source: McKinsey), could be added.

Advertisements

With a current stock exchange valuation of more than US$ 15 billion, the company has achieved a positioning in line with its growth prospects. I readjust my thinking when the company delivers new impulses or transfers the liquidity into high-yield projects. Analyst Colin Rusch from Oppenheimer sees the share at US$ 62. The average target price of most analysts is US$ 42.63, on the grounds that Plug – now planning its third H2 production site – is well on its way to being able to produce 75 tonnes of hydrogen a day itself.

Risk warning
Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without commitment. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written August 12th, 2021

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Mar 18 2024

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun Startup company water stuff & sun has...
Mar 15 2024

Is exponential growth slowing down?

Fuel Cell Industry Review 2022 Year 2022 saw fuel cell shipments creep up over 2021 numbers,...
Mar 11 2024

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure Wind, sun and loads of expertise – these...
Mar 07 2024

We can master a scale-up for green hydrogen

Interview with Dr. Kai Fischer, Director at RWTH Aachen The efficient scaling of green hydrogen...
Mar 07 2024

Frustration over continuing uncertainties

Interview with Jorgo Chatzimarkakis, CEO of Hydrogen Europe There is a lot that needs sorting out...
Mar 05 2024

“If ever there was momentum for hydrogen, it is now”

Interview with Dr. Jochen Köckler, chairman of Deutsche Messe “We’re bringing people together.”...
Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...
Jan 26 2024

Starting points for a comprehensive hydrogen ramp-up

Industry congress GAT 2023 in Cologne To establish a functioning hydrogen economy, the entire...
Jan 26 2024

The industry highpoint in autumn

Hydrogen Technology Expo total success In autumn 2023 as well, the Hydrogen Technology Expo was...

0 Comments

Leave a Reply