ITM Power (London: ITM) based in the UK was able to increase bookings by GBP 4.87 million to GBP 23.54 million. Projects for which contracts should be awarded soon have a combined value of GBP 16.67 million, so that the expected backlog is at around GBP 40 million. An intriguing product development is ITM’s recent showcase of a 50-megawatt electrolyzer design at the Las Vegas trade show SPI. It reportedly made it possible to produce 20 tons of hydrogen per day. That would be a new benchmark, as the use of hydrogen in electric transportation requires powerful electrolyzers to meet rising demand for H₂. In late August, the British-based business won the bid on a 10-megawatt hydrogen production facility for Shell and a project in cooperation with Van Hool, a bus manufacturer from the Netherlands. The stock market shared my positive mood and the stock price rose temporarily to as much as 100 percent above previous levels. To me, ITM seems like one of those yet-to-be-discovered fuel cell gems and could turn into a lucrative takeover target.

Risk warning

Investors must understand that buying and selling shares is done at their own risk. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they do not represent stakes in big companies and the volatility is significantly higher. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the assessments put forth in this article represent exclusively the author’s own opinion. This article focuses on mid-term and long-term perspectives and not short-term profit. The author may own shares in any of the companies mentioned in this article.

Author: Sven Jösting, written September 8^th, 2017