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Plug Power: Facts offer little hope

Plug Power: Facts offer little hope

The turnover in the amount of 198.7 million USD in the third quarter lay considerably below expectations, the loss per share amounts to a minus of 0.47 USD per share with the expected minus of 0.30 USD per share – in the negative sense. The loss for the first nine months of the financial year lies over 725 million USD. But the cash on hand at the quarter end of still only 567 million USD is rather irritating, as the board always spoke of sufficient liquidity.

It is now certain that at least 500 million USD in new liquidity – in the short term – must be obtained in order to be able to adequately finance all projects, is the opinion of the specialist analyst from Morgan Stanley, Andrew Percoco. This then puts further pressure on the share price – if it happens, – since institutional investors want a discount on the entry price.

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Has the Plug Power management overestimated themselves and started too many projects at the same time? There’s talk of seven to nine giga-projects (production facilities for FC stacks, electrolyzers, hydrogen, cryogenic technologies, etc.) in the USA and four others around the world. For this, the capital drain is very high. At the same time, certain regulations are not yet in place. And the credit expected from the Department of Energy (DOE) as part of the Inflation Reduction Act in the amount of 1 to 1.5 billion USD not be ready until 2024 at the earliest, as there are extensive tests and conditions involved.

Plug itself does not yet produce liquid hydrogen, but buys it on the market. This has led to further problems, as it is associated with high costs and losses. Parallel is the frozen cash of over one billion USD (restricted cash), which in turn, in my estimation, could be connected with the major customers mentioned here.

Tight liquidity situation

Still only 567 million USD was the amount of cash in the bank for Plug Power at the end of the third quarter. The many parallel projects, however, require further financial support before sales and the associated profits can be generated. That will take some time. The hyperboles uttered under CEO Andy Marsh to influence the stock exchange via investor relations are backfiring.

It is now to be expected that Plug will attempt to raise new equity by issuing shares and/or convertible bonds, which in view of the figures will no longer be so easy. Based on current share prices, any major capital increase (share issue) will only be possible at low prices. The board has stated a number of internal problems, from the situation with the purchase of hydrogen to delays in the start-up of production facilities as well as problems with supply chains.

The strong order intake in the electrolyzers segment may be reassuring, but it should be feared that competition will increase sharply, causing profit margins to shrink. Direct quote from the company: “Unprecedented challenges in the supply of hydrogen in North America.”

Short Interest

This figure – in December 158 million Plug Power shares – I always look at very closely, because it shows in which form speculation against a company and its share price is taking place. If the news is good, a price turbo (squeeze) could come about, but in Plug’s case it shows that the short sellers are correct in their assessment. I assume, though, it’s exactly big customers such as Amazon and Walmart who may have hedged their option rights via short selling. Both together have received over 100 million of these rights as a gift and can change them with very low conversion rates into shares. Theoretically, both have several billion USD (book) profit in their books if they go short at 70, 60, 50, 40, 30 USD per share – their purchase prices were are about 1.29 to 13 USD per share via exercise of the warrants. But that’s just a guess on my part – no guarantee.

I have always been critical of this deal because Plug has “baited” customers with it. And restricted cash of one billion USD is directly related to these major customers. The reason: This involves guarantees, warranties, security for technical support, spare parts and much more. Plug Power must provide such guarantees to customers such as Walmart and Amazon so that it can soundly implement orders, meaning operates H2 refueling stations for forklift trucks and ensures that there is always enough hydrogen available. The result is around one billion USD in restricted cash, frozen financial resources that cannot be used in any other way. Will companies like Amazon remain forever exclusive customers Plug Power regarding forklifts and their H2 refueling stations? The question arises because there are fewer orders from Amazon for the retrofitting of forklift trucks. Why?

Plug loses power-to-X project in Denmark

Via the consortium partner Plug Power Idomlund Denmark, Plug had actually been awarded the contract for the first power-to-X project in Denmark with a total of 280 MW of electrolysis capacity over six projects in its pocket. Then came the setback on November 20, 2023: Plug did not manage to provide a bank guarantie within the specified timeframe. It is probably about 28.3 million euros – no guarantees.

Summary: I had advised restraint until the figures for the third quarter were on the table. They are now here, but a buy still does not present itself, because it will still take time until the company creates clarity. On the contrary: Wait and see. Traders, however, can become active, since price fluctuations driven by the news will remain very high (high volatility), because the stock market has already severely punished the company (minus 40 percent alone on Nov. 10, 2023).

The question also arises as to whether Plug Power cannot avoid including partners in some projects, as it has already done with Fortescue. But that would come at the wrong time, because the possible conditions would be determined by the partner and investor rather than Plug Power itself. Will assets now possibly even have to be squandered?

In short: There is currently no need for action, because the expected figures for the current fourth quarter could again be disappointing. In 2024 and in the following years, however, the positive turnaround may come, when Plug has realized the in-house production of hydrogen on a large scale and benefited here from the Inflation Reduction Act, among other things, and also made good money with it. A DOE loan can be a game changer, but it takes time. There is no guarantee of this, even if it can be assumed that the Biden administration will not abandon prestige projects and players like Plug.

Further issues of shares are now even considered necessary and will not be implementable at ideal conditions. Six analysts have already radically changed their assessment – in a negative sense. I didn’t think my forecast would come true so quickly that the value of Bloom Energy would exceed that of Plug Power. Unfortunately, buy on bad-news is not yet suitable here. A buy limit for buying the share at three euros would be a first step. This stock is contemplatable if Plug offers institutional investors a discount on the purchase of new shares as a concession – as a risk discount.

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.

Nikola Motors: Capital increase at the right time

Nikola Motors: Capital increase at the right time

Short sellers are working massively against the company at the stock exchange. There were shortly even nearly 200 million shares sold short (on Nov. 16 still 193 million). But now, a price change upwards seems very likely. The reason could lie in the comments made at the press conference on the third quarter results, which Nikola – in my words – sees as being on the right track. The company amassed about 250 million USD in liquidity in the third quarter, and now has available 705 million USD in capital access.

The damage due to recalled battery-electric trucks was reported as 61.8 million USD (warranty reserve), where Nikola not only resolved this problem, but employed batteries from a still unnamed supplier that possessed advantages over the previous model, was the comment from the company. Additionally, the truck will be equipped with more features that will give the driver more options during use, for example from a distance using a smartphone app, the truck could be already prepared with heating in the winter and air conditioning in the summer, before the driver gets in. The battery-electric truck will, after the retrofitting in the first quarter, again find its way to customers.

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Now orders can come

There are 277 letters of intent for the purchase of the hydrogen-powered truck. In the fourth quarter, 30 to 50 of them are to be delivered and between 11 and 19 million USD turnover generated. With the battery-electric truck, meanwhile – despite the recall – an individual order of 47 units will be gained. In the next two years, Nikola is determined to deliver on average 250 to 300 trucks of both types per quarter.

The cash burn is at 100 million USD in the quarter, where for the current quarter, the financial effects of the recall on the battery-electric truck are still to be felt (61.8 million USD, of which about 38 million USD is capital that will be used). And the better the scaling of the truck production goes, the more cost-effective they can be manufactured, in order to at the end of the day come out with a good profit margin. Consider this: Money is the future will be earned especially with electricity and hydrogen and not with e-trucks per se. Nikola is at the start of its (success) story.

California setting the pace

Nikola is concentrating, for good reason, on the US state California. Firstly, the best subsidies (up to around 408,000 USD per truck) are there; secondly, the time pressure for shippers to replace diesel-powered by CO2-free trucks is very high. Already starting 2024, in California only the last-mentioned will be allowed at port facilities, so there will be new registrations only for battery-electric or hydrogen trucks. We’re talking about over 30,000 trucks alone in this market segment – a winning pass for Nikola Motors, since in the Inflation Reduction Act are provided also 2.6 billion USD in subsidies specially for port facilities and also drayage trucks as well as for the H2 infrastructure.

Additionally, the competition for Nikola in this truck segment will be sparse for years to come. The look at the already approved vouchers for e-trucks is cause to celebrate: 96 percent of the vouchers of the California’s HVIP program for hydrogen-powered trucks and 50 percent of the vouchers for battery-electric trucks are attributable to Nikola. After all, Nikola is to have received approval of already over 400 vouchers for the two truck variants. A respectable success.

Lawsuit against Milton won

The lengthy legal dispute with company founder Trevor Milton was won. On October 20 came the decision. Milton must now pay 165 million USD to Nikola, which includes procedural costs Nikola first had to pay and now receives back. It should be noted here that there is still no indication of when the money will flow. Nikola still has to pay a portion to the SEC itself, as they reached a settlement of 125 million USD and must itself fulfill it. If 165 million USD flows from Milton soon, Nikola’s liquidity will rise, as the SEC payments will be divided over the next years.

Goals ambitious but realistic

Currently, Nikola can produce 2,400 trucks of either variant per year. In order to be profitable, sales of 1,000 trucks in 2024 and 1,500 in 2025 are needed. These targets are considered realistic from the company’s perspective, if Nikola delivers 250 to 300 truck per quarter. In my view, there will also be some large orders. Beyond this, declarations like the letter of intent (LoI) with Anheuser-Busch (800 trucks) will also flow into the orders on hand, is my expectation.

Nikola Motors – The Tesla of trucks?

For this hypothesis, I earned a lot of criticism. One cannot compare a startup like Nikola, though, with the success story of Tesla. One can say: Tesla started small, then came Elon Musk. The company reported heavy losses for many years and was even on the verge of bankruptcy before the breakthrough came. In the first three years, Tesla earned money, but not with the e-cars but with  emission rights that could be sold to other car manufacturers. Tesla solved the chicken-and-egg problem by providing the electricity for the battery-electric vehicles itself by establishing a charging network made of its own Supercharger stations. Who would have bought a car from Tesla if there had been no charging option – as a package, even free of charge for years?

Nikola is doing the same – only for trucks with the help of electric charging stations and H2 refueling stations. Nikola wants to earn money with electricity and the self-produced or purchased hydrogen. In the USA are waving high subsidies of three USD per kg. Tesla continues to address the market for e-cars, but Nikola the segment for trucks. Both companies can be considered disruptive – they change markets and business models. Both are first movers.

Tesla and its CEO was met with much skepticism, but they proved that change is possible. Nikola is doing the same – only for commercial vehicles. Whether both can be compared with regard to the development of their valuation or share prices time will tell. For Nikola I am extremely optimistic.

Chief financial officer leaves the company

Stasy Pasterick was just six months in office as CFO. She is going over to Universal Hydrogen in the same capacity. It will be interesting to see who her successor will be.

Capital increase secures the company

On December 6, 2023, Nikola’s plan to raise fresh capital on the stock market became known. It entails a convertible bond of a nominal 175 million USD with 8.25-percent coupon (green bonds) with maturity December 2026 (0.90 USD conversion price per share) and 100 million USD in new shares at 0.75 USD per share. The share price fell from around 1 USD probably because – no guarantee – a hedging took place, so the price was depressed, as one can retain and stock up on the share after the capital raise. The share also fell because short sellers wanted to use the capital increase as a negative for themselves.

In accordance with experience, this measure will have already been successfully implemented by the time you read these lines. With it, Nikola is then thoroughly financed and will ultimately have 500 million USD in the bank. That the share price is rising above 1 USD again is also in the nature of things, because the financiers (investment banks such as Nomura) will most likely not accept a delisting of the share (it will come to this if the price sinks below 1 USD for a longer time).

Summary: Nikola is well on the way to positioning itself as a first mover in CO2-free trucks in the USA – first in California, later across the whole country and in parallel in Canada, where likewise large subsidy sums up to 380,000 CAD per truck are waving. Comprehensive funding programs are acting as a turbo, as the buyers of the trucks can comply with the regulatory pressure and are financially incentivized as well. The H2 infrastructure is being established by the company itself, but will be financially accompanied by business partners such as Voltera (EQT) and is receiving a boost by a 7-billion-USD program of the Biden administration, in which seven hydrogen hubs are to be established in the USA. The stock market will not be able to avoid newly valuing Nikola as a startup: In the right market at the right time. Maybe Nikola will even be the H2 share that develops the most price potential. What’s the phrase? No risk, no fun.

Nikola’s management team is considered excellent. CEO Stephen Girsky pointed out that this includes top managers who no longer actually have to work in a start-up, but who are happy to contribute their expertise to make the company’s vision a reality. This is the right approach – out of conviction and with experience.

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.

Hyzon Motors: Sensible withdrawal from Europe

Hyzon Motors: Sensible withdrawal from Europe

The numbers for the third quarter and the outlook promise a very exciting future for Hyzon Motors and its 200‑kW FC modules for trucks. Series production will begin in the second half of 2024. The activities will be concentrated at one location in the USA. Hyzon with its subsidiary is withdrawing from Europe. That is the right step, since a young company should concentrate on the market that is most important to the company, in order to use the limited capital resources in a targeted way.

Hyzon, however, is still looking for a fulfillment partner in Europe who can independently bring to use the company’s FC stacks, comparable to the partnership with Fontaine Modification in the USA or one like Quantron with Ballard Power. Hyzon is focusing on the USA and Australia/New Zealand, where a hydrogen-powered waste collection truck was recently delivered to Remondis. The FC modules are produced in the USA, which makes sense given the subsidies.

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Hyzon will also benefit from the development of the H2 hubs, because the MACH2 project in the Midwest lies in the vicinity of its own production facility and belong to the projects of the DOE subsidized as part of the seven billion-dollar hydrogen hub program (awards of one billion dollars for each hub).

At the same time, Hyzon announced that they have agreed with the SEC to a payment of 25 million USD, payable in three installments over the next few years. This concludes this unspeakable issue, which is based on the misconduct of the former board of directors (accounting scandal). The cash burn per month can be massively reduced, and for ramp-up of module production only about five million USD is required. At the end of the third quarter are still 137.8 million USD in the bank, at a capital requirement of 10 million USD per month.

With the parent company and majority shareholder Horizon from Singapore, the IP license agreement was able to be extended until 2030 and could also be extended to other activities: So Hyzon is also planning to introduce new 300‑kW FC single stacks into the stationary energy supply of data centers and hospitals. Ballard Power and Bloom Energy are already active in this area.

Parker Meeks, CEO of Hyzon, responded to a question about why his company was focusing exclusively on fuel cells and not electric vehicles: „The experience with battery-electric trucks for many has been one in which the usable range is not what they imagined, especially when going uphill, which is the case even in the Los Angeles Basin. If you know the area, if you’re going somewhere where there’s a long distance, you’ll probably have to drive up a hill. Fuel cell trucks do not lose power, and this is the crucial factor that makes them particularly suitable for heavy transport as opposed to transporting drinks.”

Summary: In the USA Hyzon is working on establishing and expanding capacities in order to ramp up production of the 200‑kW FC modules. The partnership with Fontaine Modification suggests that a large sales market is emerging here, as Fontaine rebuilds trucks or retrofits vehicles and Hyzon as a technology partner in this comes perfectly into use with its FC modules. In this context, we can also well imagine that Fontaine through parent company Marmon Holdings has a direct stake in Hyzon. There will surely be capital measures (new issue of shares), and the entry of a strategic partner would be the ideal way to achieve this.

A highly speculative, very interesting investment. Hyzon is suitable as an admixture to Ballard Power and Nikola Motors, as these three companies can be jointly assigned to the area of fuel cells in commercial vehicles.

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.

Hydrogen shares sustainably on course

Hydrogen shares sustainably on course

“Life punishes those who arrive too late” is the famous Gorbachev quote. The inverse could be applied to hydrogen at this time: The stock market punishes those who come too early. The shares of H2 companies are trading at a price level as if the supermolecule has no future. Far from it! The stock market wisdom of contrary opinion recommends doing the opposite of what the majority of investors are doing at the stock market.

Warren Buffett would add that you should not change your mind at the stock market if the general mood suggests it. On the contrary: Buy shares whose whole stories are simply “round,” and despite short-term disruptive factors remain unperturbed, as long as the outlook is right. Looking at the current situation, there are many opinions that view hydrogen and fuel cells critically. Also the increasing employment of batteries will then be brought into the field and their advantages underscored, such as energy density, travel range, new materials and recycling. But that is not a convincing counter-argument, because there are real synergies between the battery and hydrogen. However, if we apply the above contrary opinion to shares in the H2 sector, one should buy now and reduce the price or engage this complex of topics completely newly at the stock exchange, as prices have bottomed out and are set to rise gradually and sustainably.

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The stock market thrives on dreams, and they are clearly present here – climate change and decarbonization are setting the pace. Every day, projects around the globe are announced that deal with the production and use of hydrogen in various applications and markets. All of this is real, even if the implementation will still take some time and some projects are still in the planning phase. Worldwide, projects with a volume of over 500 billion USD have been announced – and probably only five to ten percent of these are in actual implementation. Note, however: These are clearly defined projects.

Different speeds

The ramp-up and concrete implementation of hydrogen projects are taking place at different speeds – from region to region, from country to country, from business to business. The reasons for this are manifold. It is often regulation that prevents, delays or, on the contrary, accelerates important developments.

Current examples: A few weeks ago, US president Biden launched a program of seven billion USD to support the construction of seven H2 hubs in the USA. The good thing about it: Private capital of an additional 40 billion USD will be stimulated by the the 7-billion-dollar boost through the market economy. And just as the Inflation Reduction Act pragmatically makes capital available to companies, other countries and economic zones should likewise proceed to spark comparable dynamics.

Interesting is the glance at certain markets such as long-haul transport by truck. In agreement are the majority of truck manufacturers that hydrogen will be the energy source especially for heavy goods, whereas on short treks, it’ll be the battery or a hybrid of the two – depending on field of application and radius. Emissions legislation and CO2 levies will make the transition from diesel to hydrogen and batteries necessary. We’re talking about several million trucks that step by step need to be modified for the future.

In parallel, the charging or refueling infrastructure will be established. Tesla with its Supercharger network is a good example for this, because the company itself has solved the chicken-and-egg problem. That the ramp-up will take a few years yet is clear to see. Companies such as Ballard Power, Cummins Engine, Nikola Motors, Hyzon Motors and many others are in the process of positioning themselves perfectly for the ramp-up. And what applies to heavy transport also goes similarly for maritime transport (here again are Ballard, Bloom Energy, Cummins) and rail. Companies that position themselves correctly in terms of technology and create the necessary capacities will benefit from the future development.

South Korea and Japan are leading the way, as is China. In the USA, it is California, as the highest-performing federal state, that has fully recognized the potential of hydrogen. Interesting is also a glance at the world map in terms of ammonia as a basis for the transport of regeneratively produced hydrogen: 177 major projects have been announced worldwide – the production of hydrogen and transport over long distances via ammonia (NH3) will then increase sharply starting 2026, which also ensures that hydrogen will be available in ever larger quantities at falling prices (up to 1 USD per kilogram is the forecast for the next 10 to 15 years).

At the major trade fairs and conferences, spirits were high even though the companies know that the implementation of many projects will take a while – longer than expected. The large number of partnerships and project descriptions makes it impossible not to be optimistic. In my view, a boom will emerge that will be based on and boosted by development in countries such as China.

Analogous to 2020

The stock market, in my opinion, is entering a new phase that can be compared with the period from 2017 to 2020, when there was a price explosion in H2 shares. The difference between the years around 2020 and those from 2024 to 2030, however, is that in the future there will be a steady, long-term and sustainable upturn in the H2 sector – surely again with some price exaggeration upwards as well as downwards, but rising in trend.

Companies have built up production capacities, optimized their products, realigned their business models and are preparing for the ramp-up. They will be able to deliver when the market demands it. The stock exchange will anticipate this step by step, provided the industry proves that it is possible to earn money with regeneratively produced hydrogen. Then, a comparison with the years 2017 to 2020 is inappropriate in that the prices in the future will sustainably rise, because a new megatrend is running its course – worldwide.

There is a need to differentiate between the various FC sectors and individual companies, however. It depends on how one as a company is positioned in the “right markets,” because competition in terms of profit margins is also increasing in parallel. For example, the production of electrolyzers in China is up to 70 percent cheaper than the global competition. Companies that earn money from hydrogen as a consumable and commodity are, in my opinion, better valued by the stock market than pure plant builders. The business models will influence the development of share prices in various ways, since what counts in the end is the return on investment (ROI), the company’s profit.

Book tip, indirectly on the topic (German-language): “Zukunft – eine Bedienungsanleitung” by Florence Gaub (ISBN 9 78323 283724)

But what you need as an investor is composure and time. Buy and leave and buy again little by little to achieve a good average price. Safer than individual investments in this are of course H2 funds (ETFs), of which there are plenty and which do not differ greatly in the composition of the securities. According to the cost-average principle, always buy more. Consider this: Facebook, Tesla, Google and Amazon were also not a success story right from the start, but rather after various numbers of beginning years demanded enormous capital expenditures and also justified logical losses in the start-up phase.

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: Written by Sven Jösting, December 15th, 2023

Bloom Energy: The stock market has switched gears

Bloom Energy: The stock market has switched gears

My number one in this segment was and remains Bloom Energy, even if the share price, despite the recent price gains, does not come close to reflecting the prospects. In the third quarter, the turnover was able to rise nearly 37 percent to over 400 million USD. There is much to suggest that the current fourth quarter will also show a strong upward trend – 1.4 to 1.5 billion USD should be the total for 2023. The non-GAAP profit margin was able to rise in the quarter an impressive 12.4 percent from the previous year to 31.6 percent. Non-GAAP profit in the third quarter amounted to 51.8 million USD, so an improvement of 80.3 million USD compared to a non-GAAP loss of 28.5 million USD in Q3 2022. I am concentrating here on the non-GAAP figures, as these exclude special factors and one-off effects.

In year 2024, Bloom should not only be cash flow positive, but also operationally profitable. The cash on hand of 650 million USD at the end of the third quarter must also be seen from the aspect that material inventories with value of over 400 million USD (capital employed) were significantly increased, so existing orders can be processed quickly and, because of the parts on hand, there are no supply chain problems.

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Production sites centrally consolidated

Bloom is concentrating fully and completely on the Fremont location, because production there is highly efficiently automated (state-of-the-art facility). As a result, nearly 100 employees were let go (overhead in Sunnyvale), which was interpreted to mean that the company was not doing well (comments in chat rooms and analyses) – by no means the correct interpretation, because higher automation saves on costs. Everything has an upside and a downside.

Exciting is the outlook of CEO K. R. Sridhar: The enormously increasing energy demand – for example for AI – will be drive the business of Bloom and its energy servers, because it’s not just about the quantity of clean energy, but also about its permanent availability (24/7) and security. Power-to-heat models enable the simultaneous use of generated energy for electricity and heat, as the energy generated in the process and its waste heat can be used immediately for heating (process heat) and also for cooling. The perfect cycle. As the electricity grids are reaching the limits of their capacity, island solutions like that of Bloom are coming in the focus of many businesses. While natural gas is still being used for the time being, it will successively be replaced by hydrogen in its many colors.

In parallel, the company’s own carbon capture technology will reduce the CO2 footprint. Here Sridhar also makes interesting allusions to the potential of its own high-temperature SOEC electrolysis. All the same, Bloom with its electrolysis technology is participating in four out of the seven hydrogen hub projects of the Biden administration (seven billion USD investment in seven H2 production centers spread across the USA). The business with the electrolysis will start in 2024, but will then make a real contribution to the company’s growth starting 2025. CEO Sridhar has said, “Bloom Energy is executing at a high level on innovation and growth.” Summary: The stock market story is round. In year 2024, we should see again prices over 30 USD, if the company’s forecasts are met.

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: Written by Sven Jösting, December 15th, 2023