It seems like Nikola Motors [Nasdaq: NKLA] was able to stop the bleeding of the past few months. The stock is rising again. Up to 30 million shares are now traded each day, a comparatively high volume for the company. The new-found optimism among investors seems to stem from reports about Nikola’s recent progress in meeting its targets. Construction of the Arizona factory is well underway. Then there are new production facilities being built in Ulm, Germany. And another boost for the stock came when competitor Daimler Truck announced its intention to have 5,000 hydrogen-fueled heavy-duty vehicles on the road over the next few years, with business partner Shell providing the fueling infrastructure. Sounds a lot like Nikola’s business model, the difference being that Nikola will produce its own hydrogen, and be able to keep the revenue, instead of outsourcing the task to another company.
Where have we made considerable progress in developing hydrogen technology? In what market are there still hurdles to overcome? Where do we still need to remove roadblocks to innovation? Answering questions like these is the task of Hydrogen Compass, a two-year project launched by the German education and economy ministries and funded with EUR 4.2 million.
Interview with Gerald Linke, DVGW chairman
The German gas and water industries association DVGW has for some time been increasing its efforts in relation to hydrogen. In early 2018, it entered into initial negotiations with the German Hydrogen and Fuel Cell Association, DWV, with the aim of intensifying the cooperation between the two organizations. At the end of 2020, DWV members voted overwhelmingly in favor of the partnership proposed by the board. What unites these two associations and what could the gas industry look like in the future? Gerald Linke, DVGW chairman, shared his views with H2-international.
“Who cares if H2 production is inefficient? Free is still free!”
Mike Strizki is more than infatuated with hydrogen. He’s dedicated to it, saying he has a lifelong commitment to the most plentiful element on Earth – that it is essential to bringing about zero emissions. And allowing his eight grandchildren to live healthier and more productive lives.
In February 2021, JA-Gastechnology, also known as JAG, shipped a permeation climatic chamber to a U.S. commercial vehicle manufacturer. Based in Burgwedel, Germany, JAG reported that it is the “world’s biggest climatic chamber for hydrogen trucks,” capable of carrying out pressure cycling tests and permeation measurements. With an internal diameter of 10 feet (3 meters), … Read more
The reshaping of the energy landscape is well under way. And as the energy industry begins its transformation, it’s become apparent that hydrogen has a major role to play in the new world order – albeit not straightaway, but in the near future. Hence we see every imaginable organization jostling for position to take advantage of this restructuring and perhaps also to shape its direction.
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.
There are two sides to every story. And that’s very much the case with the planned cooperation with General Motors, GM, and the cancellation of 2,500 battery electric refuse trucks for Republic Services which turned out to be rather fortuitous in retrospect. In the GM scenario, Nikola would itself have had to spend over USD 700 million on tools, among other things. The participation of GM with USD 2 billion as a “valuable consideration” would have resulted in a dilution of the number of issued stocks.
Plug Power [Nasdaq: PLUG] has undergone one financing round after another, with a third bought deal sandwiched in between, this time to the tune of more than USD 1.7 billion. What’s more, the South Korean SK Group has promised to put up USD 1.6 billion in return for a 9.9 percent ownership stake in the company, an investment that will also form a basis for a joint venture between the two corporations. And if that’s not enough, Plug, which is headquartered in the U.S., intends to fit out delivery vehicles for France’s Renault Group. Plus, the company has been busy buying in top talent for its management team. That’s the good news.