Contact

Plug Power – In the profit zone with H2 production

By

April 23, 2022

Image titel:

Sources:

Plug Power – In the profit zone with H2 production

Project manager Robert Zalinski presented Plugs products at the new Duisburg site

The plans are huge: three sites are to start production already this year. The first target for the current fiscal year is 70 tonnes of hydrogen per day. This should enable a profit margin of 30 percent. Of this, 40 to 50 tonnes per day are needed for existing activities and 20 to 30 t/day will be brought to market as a tradable commodity, is my expectation. 

Here too the subsidies of the American government for green hydrogen (3 USD tax credit per kgH2) might play a role. The production target is 500 tonnes per day for fiscal year 2025 and 1,000 t/day for 2028. Also Plug’s cooperation (50/50 JV) with the Australian company Fortescue, founded by Australian billionaire Dr. Andrew Forrest, to achieve an electrolysis output of 1 GW sounds huge and may have a very positive effect on Plug’s development, especially since the conditions in Australia, plenty of sun and wind, are perfect. With Forrest, a partner has been gained who gives the topic of hydrogen the highest priority, shows very strong commitment here and meets many superlatives. He wants to become the world’s largest producer of hydrogen. 

Advertisements

Plug Power is positioning itself to cover the entire hydrogen and fuel cell value chain through strategic acquisitions. For this, the company is developing a number of applications and markets. In addition, Plug plans to make various calls for tender for use of the company’s own electrolysis capacity (from subsidiary Giner EXL) worldwide and thus generate revenue from this as well. Furthermore, the North Americans are working on optimizing and scaling the technology and the entire business model. 

In the material handling area, for example forklifts, Plug is probably getting several more major US and European customers. In 2030, this segment alone is expected to generate a turnover of 4 billion USD. Smaller customers that need less than 50 kgH2/day are also desirable, for which a trailer/containerized solution might make more sense as the H2 fueling station. Initially, Plug sees the international portion of the business as 25 percent, but 30 to 40 percent in the long run, which can be seen in various projects not only in Australia, but also in Spain, Egypt, South Korea (JV with SK Group), France, Holland and Germany. 

Advertisements

HYVIA – Joint venture with Renault 

In 2022, 250 vans are to be delivered to around 20 customers. The number is to be 250,000 in 2030. Among the buyers was named Amazon, but also taxi fleets. Plug’s acquiring of the companies Frames Group, Applied Cryo Technologies (liquefaction of hydrogen) and Joule Processing is certainly expedient, but the time of their integration will tell their true contribution to the business development and corporation. 

Summary: With nearly 2.5 billion USD in the bank (plus 1.2 billion USD of available-for-sale securities), Plug can still bear the weight of its ambitious plans itself. However, the extensive investments in production facilities and acquisitions will cause the capital base to melt away before profits are made, so the transition to the profit zone is likely to take a few more years. One billion USD is considered the investment (liquid asset outflow per year), so it cannot be ruled out that more capital will have to be raised by issuing shares, which, in view of the massive increase in the number of outstanding shares to over 570 million in the last two years, might even be seen as critical.[…]

… Read this article to the end in the latest H2-International

Warning 

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: Sven Jösting, written March 15th, 2022 

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.

Mar 18 2024

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun Startup company water stuff & sun has...
Mar 15 2024

Is exponential growth slowing down?

Fuel Cell Industry Review 2022 Year 2022 saw fuel cell shipments creep up over 2021 numbers,...
Mar 11 2024

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure Wind, sun and loads of expertise – these...
Mar 07 2024

We can master a scale-up for green hydrogen

Interview with Dr. Kai Fischer, Director at RWTH Aachen The efficient scaling of green hydrogen...
Mar 07 2024

Frustration over continuing uncertainties

Interview with Jorgo Chatzimarkakis, CEO of Hydrogen Europe There is a lot that needs sorting out...
Mar 05 2024

“If ever there was momentum for hydrogen, it is now”

Interview with Dr. Jochen Köckler, chairman of Deutsche Messe “We’re bringing people together.”...
Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...
Jan 26 2024

Starting points for a comprehensive hydrogen ramp-up

Industry congress GAT 2023 in Cologne To establish a functioning hydrogen economy, the entire...
Jan 26 2024

The industry highpoint in autumn

Hydrogen Technology Expo total success In autumn 2023 as well, the Hydrogen Technology Expo was...

0 Comments

Leave a Reply