Things are happening on the analyst and investor front: BlackRock has raised its position in Hyzon Motors. Over 100 institutional investors are already involved. The largest of these is the Saudi Arabian state fund PIF, which holds over 8 million shares. Billionaire Izzy Englander named Hyzon as one of his top three picks and acquired 1.36 million shares.
The average price the analysts at Hyzon expect lies at 13 USD. Goldman Sachs has broken from this with a more recent assessment and for now only assumes 7 USD. The reason for this reluctance is the still missing H2 infrastructure. However, the hydrogen problem will be solved little by little, as the cooperations with TC Energy (for H2 production, pipelines) signify. Through these ties, Hyzon’s fate is similar to Nikola Motors, but the problem of hydrogen production is addressed.
The first large order, so 1,000+ FC trucks, will be very exciting. Maybe it will come from Saudi Arabia. The country’s project NEOM (500 billion USD investment) relies heavily on regenerative energies and hydrogen. One goal is to produce 10,000 hydrogen-powered trucks locally. Among others, Hyzon has been mentioned – but no confirmation as of yet.
Hyzon is also active in the global market for H2 trucks. Specifically in China, since there is where the biggest growth in the commercial vehicle sector of the H2/FC industry is envisioned. In Australia, Hyzon has now selected Melbourne as its head office and has already concluded cooperation agreements there. For those who are interested in a closer view of the company’s development, there is a shareholder/fan group on Facebook that provides very detailed reports on all of the company’s activities.
Meanwhile, the first major order has come from Holland via LOI. The waste removal corporation Geesinknorba (7,500 trucks throughout the Netherlands, France, Spain and 30 other countries) plans to order 300 FCEV trucks from Hyzon over three years. In the US, a second production facility in Chicago is planned, designed for an annual production of 12,000 trucks. In the UK, the company was able to sign an MOU with John G Russell – one of the five largest logistics companies in the country. First to be worked on is a 44-tonner with specifications specially tailored for the country. Planned is a cooperation with Hyzon in service, repair, distribution and financing (leasing).
Whoever wants to take a chance on the fuel cell in commercial vehicles (trucks) will do right with Hyzon, but should also recognize the opportunity in Nikola. With these two stocks, the market of battery–electric as well as hydrogen–powered trucks is very well covered. However, both companies should be seen as start-ups, so the risk level of the investment and the price fluctuations (volatility) ought to be classified as high – not for conservative investors.
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. 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 medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Author: Sven Jösting, written March 15th, 2022