In early March 2021, ElringKlinger and Plastic Omnium declared their intention to give fresh impetus to the production of fuel cell stacks and components with their new join venture – EKPO Fuel Cell Technologies. According to company reports, the aim of EKPO, in which ElringKlinger holds a 60 percent ownership stake, is to manufacture fuel cell components at competitive prices “at first mainly for commercial vehicles and buses and then also for cars.” A production figure of up to 10,000 stacks a year is forecast. Company bosses explained that there is sufficient production capacity available to be able to realize a sales volume of between EUR 700 million and EUR 1 billion by the year 2030 which equates to a market share of 10 percent to 15 percent.
The highs and lows of hydrogen and fuel cell stocks in recent weeks can be best described as a bumpy ride following a significant and rapid increase in prices. It seems to me that the market has entered a major consolidation phase. Yet this is no reason to lose faith, especially as the wild fluctuations that have been raging since early December 2020 – with some stocks climbing more than 50 percent inside a month – begged a correction. A process which is now in full swing. At the end of the day, it’s the future of the industry that counts and so here I stand by the old stock market maxim: The trend is your friend.
There has been a stark rise in the valuation of the business from around USD 100 million to now over USD 9 billion, with the stock price increasing from USD 1 – USD 2 to USD 29. I would go so far as to call it totally excessive. I got early wind of FuelCell Energy [Nasdaq: FCEL] as a turnaround after a management consultancy had “cleaned it up” and after the company had undergone a period of refinancing and restructuring and happily onboarded Orion Energy Partners as a key investor.