The great excitement surrounding hydrogen seems to be over for the time being: Most H2 shares have been on a downward trend for some time. This seems paradoxical, as climate change is accelerating and time is running out to slow it down. This makes a consistent energy transition all the more necessary, and that includes the hydrogen sector. However, energy policy is currently running with the handbrake on when it comes to renewable energies. Meanwhile, the companies that earn their money with fossil fuels are securing their sinecures.
When the European Hydrogen Bank’s first pilot auction (Innovation Fund Auction IF23) was announced on Sept. 5, 2023, it drew much attention. April 30, 2024, then saw the publication of the results for the pilot auction, for which the European Union was making EUR 800 million of support available. Seven projects from northern and southern Europe were successful in obtaining funding. The aim of the hydrogen auction is to accelerate the rollout of green hydrogen and send price signals by narrowing the cost gap between green and fossil-based hydrogen.
In the past, hydrogen was usually isolated from fossil fuels such as natural gas using steam reforming and stored. Ecologically more sensible is hydrogen generation through the electrolysis of water using green electricity, for example for later electricity generation in fuel cells – but this reduces the efficiency compared to other storage media and the economic efficiency suffers. Hydrogen – itself not a primary energy source – serves primarily as a secondary energy source, so as a storage medium, and can be an ideal buffer to absorb excess capacity in electricity generation (e.g. from wind and solar) and then provide it when needed.
Siemens Energy is on the right track, as the latest figures show. Although the wind subsidiary Gamesa, like before, is registering losses, all other divisions are doing well and are profitable – trend rising. That the stock market also sees it that way is shown by the share price being at times over...
Setting up various production lines for stacks is at the focus for Ballard Power. With these, the company can act and deliver during the ramp-up in the next years. With still nearly 800 million USD in the bank, Ballard is in a comfortable situation and is able to finance all investments from its own...
That the wind subsidiary Siemens Gamesa will still cost its parent company a lot of money has been the case for a while. Too great are the problems with some wind turbine types (onshore), and integration also costs money until synergies properly take effect and cost reduction potentials can be...
From the house of Siemens Energy, we’re reading about various projects which, in our view, address many new markets in the field of hydrogen. These involve, for example, the construction of an electrolysis plant where the resulting waste heat can be used for a heat pump and, with this and the...
The integration of wind subsidiary Gamesa will still need time until synergies (supply chains, joint purchasing power) and cost reduction potentials become visible in good, or initially at least better, figures. Nothing else is to be expected. The increased loss in the first quarter (Sep. 30, 2022)...
The turnaround we’ve been forecasting for some time is in sight. Year 2024, according to the predictions of board chairman Christian Bruch, will bring profit. The share price has turned around noticeably and rose nearly 50 percent compared with the lowest price. The numbers: The turnover of 29...
We’re seeing a steep decline in earnings at Weichai Power: 2.387 billion CNY gain (minus 63.3 percent compared with the previous year) with a 35.9 percent turnover decrease to 86.74 billion CNY. The subsidiary Kion (45% stake) even saw its share price fall on the stock market from over 120 to 20 EUR...
The idea that a crisis can be seen as an opportunity ripe for exploitation is one that is extremely widespread in South Korea. The country is investing massively in both hydrogen technology and the hydrogen economy with the aim of minimizing the environmental impact of its industrial and energy...
Now it has come to the final step with the loss-making Siemens Gamesa: Siemens Energy will fully integrate the 67.1% subsidiary, as was to be expected. The parent company is buying the remaining shares via a takeover bid for 18.05 EUR per share. As interim financing, a loan in the amount of 4 billion EUR was taken, which will surely be refinanced through the issuance of treasury shares – there’s talk of up to 2.5 billion EUR.
Siemens subsidiary Gamesa still doesn’t seem to be out of the woods, looking at the strong loss (minus 627 million EUR) that this company contributed to its parent (total minus of 560 million EUR). Onshore wind is considered a problem area – combined with miscalculations and supply chain issues. For this reason, there is speculation that this subsidiary will be fully integrated or restructured via a share swap, which could be implemented in, among other things, a realignment or even a split-off. A partial merger with a competitor may also be possible.
In October 2021, the association Hydrogen Europe unveiled its Clean Hydrogen Monitor 2021. This is the second edition of the paid-for guide which aims to give an overview of European hydrogen applications through an extensive array of facts, figures and analysis.
If you read about any of the major hydrogen projects underway, you will be unable to avoid Siemens Energy. Orders like the recent ones worth EUR 700 million should be on the agenda. Even the problems with its wind power subsidiary Gamesa seem solvable because – regardless of short-term problems (price increases in raw materials and component shortages) – the market is growing strongly. Here, I would venture to suggest to the company that it integrates wind farms into existing projects and offerings via Power Purchase Agreements, or PPAs, from the outset. Then you would be able to view a wind farm from a different return perspective and margin.
