Plug Power – new manager comes from Tesla


October 15, 2021

Image titel:


Plug Power – new manager comes from Tesla

With US$ 5 billion in the bank, Plug can position itself perfectly in the hydrogen and fuel cell theme complex. This includes its own H2 production as well as the development of alliances, such as the most recent one with Renault. And it is advisable – in my opinion – to reduce the one-sided focus on the market for forklift trucks (material handling), since the major manufacturers such as Toyota and Kion are pursuing their own hydrogen strategy in the future and the devices of future generations will already have a fuel cell system included, so that the conversion or expansion of a battery is not necessary.

Major customers like Walmart and Amazon have also shown that they are smart partners (supposed billions in profits from warrants), giving Plug orders but leaving many costs and risks with Plug as well. The sector of H2 filling stations is exciting, as Plug has extensive know-how here and should enter production or could plan to do so (comparable to companies such as Nel Asa), because a very large market is foreseeably emerging here, which is only just beginning. One positive aspect is that top talents are bought in, such as David Mindmind, who was responsible for setting up production in Nevada at Tesla. He is now Head of Global Manufacturing at Plug.

Plug has entered into a Purchase Power Agreement (PPA) with Apex Clean Energy – a leading operator of wind and solar parks in the USA (not to be confused with the Rostock-based Apex Group) – to supply 345 MW of wind power for the joint production of hydrogen. This first project will certainly be followed by others, as Plug plans to produce first 500 and then 1,000 tonnes of hydrogen per day itself in a few years.

Reports on the second quarter
Orders for the conversion of forklift trucks (battery out, fuel cell system in) are not as relevant to me as it is portrayed. This is because these incoming orders (billings) have so far come mainly from companies such as Amazon or Walmart and have so far not had a convincing profit margin, but have mainly served to symbolically represent large orders. The only thing that is important is whether a profit is made with the hydrogen, the consumable (liquid, gaseous), which is produced by the company itself in the future. I wouldn’t see Billings as the main reason for investing in Plug, even though that always sounds huge. At the end of the day, what counts is what is earned. Plug has to prove that the business model is profitable – as simple as that. For 2021, US$ 500 million in billings are to come, and then US$ 750 million in 2022. In the second quarter, turnover was US$ 124.6 million. The bottom line was a loss per share of US$ 0.18 (a loss of US$ 0.07 per share was expected).
Conclusion: At US$ 5 billion, Plug’s positioning in the hydrogen market is well represented. This includes the development of its own production and infrastructure (H2 filling stations) as well as new growth impulses through its own electrolyser production. Some additional acquisition will certainly come along – I would see an investment in Nikola Motors as a target for Plug. Among other things, a joint H2 filling station network could be set up and, in addition to the plans for vans, large commercial vehicles, where hydrogen is becoming a very big issue (bigger than for light trucks or vans) (source: McKinsey), could be added.

With a current stock exchange valuation of more than US$ 15 billion, the company has achieved a positioning in line with its growth prospects. I readjust my thinking when the company delivers new impulses or transfers the liquidity into high-yield projects. Analyst Colin Rusch from Oppenheimer sees the share at US$ 62. The average target price of most analysts is US$ 42.63, on the grounds that Plug – now planning its third H2 production site – is well on its way to being able to produce 75 tonnes of hydrogen a day itself.

Risk warning
Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without commitment. 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 a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written August 12th, 2021

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Jul 15 2024

Only a third of NIP projects approved

Interview with Elena Hof, Paul Karzel and Jörg Starr from CEP The Clean Energy Partnership or CEP...
Jul 15 2024

Switzerland’s largest H2 plant

Energy group Axpo and the company Rhiienergie have launched the first H2 production plant for...
Jul 15 2024

Why hydrogen stocks can fall even further

Max Deml’s stock analysis In the past, hydrogen was usually isolated from fossil fuels such as...
Jun 13 2024

H2 Bank Selects Seven Projects”

The European Commission is allocating nearly 720 million euros to seven projects for renewable...
Jun 13 2024

World’s one-of-a-kind H2 test lab

Electrolyzers on the test bench In Hydrogen Lab Bremerhaven, manufacturers and operators of...
Jun 13 2024

First commercial green hydrogen production

Solar Global operates electrolyzer plant in Czech Republic An electrolyzer in the town of...
Jun 12 2024

Hydrogen 3.0

“Are we on the cusp of a hydrogen revolution or merely witnessing the build-up of another bubble?”...
Jun 12 2024

Mechatronic H2 pressure regulator

Up until now, Italian company Landi Renzo has been mainly known for its conversion sets for gas...
Jun 11 2024

Establishment of a metrological infrastructure

Flow measurement of high-pressure gas and liquid hydrogen In the field of flow measurement, the...
Jun 11 2024

FRHY Stack, first of its kind!

Technology platform for high-rate electrolyzer production The cooperative FRHY project, which...
Jun 10 2024

HySupply – German-Australian hydrogen bridge

Acatech and BDI show what’s feasible Defossilizing the energy system is an important goal of the...
Jun 05 2024

In the beginning was the refueling station

Creating planning security through the development of H2 infrastructure We have long discussed the...
Jun 04 2024

Digital potential

Low-cost green hydrogen through digitalization Plans to expand Germany’s hydrogen landscape are...
Jun 04 2024

A new energy infrastructure is emerging

“Green” and “blue” ammonia from other continents to come to Europe Ammonia produced from...
May 31 2024

Fuel cell systems for grid hardening

Interview with Christian Leu and Benedikt Eska from Axiosus An important but often neglected area...
May 30 2024

A new energy infrastructure is emerging

“Green” and “blue” ammonia from other continents to come to Europe Ammonia produced from...
May 16 2024

New CFO for H-Tec Systems

Electrolyzer manufacturer H-Tec Systems underwent restructuring at the turn of the year and...
May 16 2024

One-man show continues to grow

Hydrogeit Verlag celebrates its 20th anniversary The Hydrogeit Verlag publishing house has been...
May 15 2024

Hydrogen for the post-coal era

Nuclear energy also to power electrolysis in Hungary In May 2021, Hungary published its national...
May 15 2024

Hüwener to lead OGE

Thomas Hüwener will become the new management spokesman for transmission system operator OGE from...


Leave a Reply

Discover more from H2-international

Subscribe now to keep reading and get access to the full archive.

Continue reading