Hyzon Motors will start production of 200‑kW modules for commercial vehicles in the USA in the second half of 2024. This should then lead to a recovery of the strongly depressed share price via incoming orders. Parallel to this are running product presentations such as the recent one in Melbourne (Australia) with the 200‑kW Hyzon Prime Mover at the Kangan Institute Automotive Centre of Excellence. Deliveries in New Zealand, Australia, Europe and the USA are planned for later in the year. This fuel cell system can be used in many other applications and markets at the same time: rail vehicles, maritime transport, stationary energy, mining vehicles, etc. It will be interesting to see which customers this 200‑kW single stack will find and the order potential that will result, especially as it offers a cost reduction potential of over 25 percent and conserves 30 percent of the space and weight – compared with a 110‑kW system. A first major market for Hyzon will be the employment in commercial vehicles in Australia, where the company has an important location with around 50 employees.
Patent registrations – Competition with Toyota and Bosch
Hyzon Motors has applied for a number of patents in the USA, Europe and Asia and many have already been granted. The main focus here is on reducing emissions when using fuel cells, but also on battery systems. What this means in detail is not clear to me, but shows that Hyzon is very active in securing patents and sees in it an important basis for its FC products and utilizations as well as markets. This would put them in direct competition with companies such as Toyota and Bosch. This could – purely theoretically – eventually lead to license revenue.
Hyzon still has with over 100 million USD sufficient capital, but will not be able to avoid taking measures (issue of new shares or participation of a strategic investor) to finance the company’s growth and expansion. The production facility in Illinois is self-financed. Production ramp-up is beginning in the second half of the year. Incoming orders for the FC modules as well as speculation by a strategic partner or investor make the share of Hyzon Motors a very interesting speculation, although the investment is to be classified as highly speculative as you’re dealing with a start-up.
Disclaimer
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, 2024
