by Lewitz | Jan 17, 2025 | Germany, Market, News
The German fuel cell manufacturer Proton Motor has announced the provisional end of its production activities at the end of 2024 if no new investor is found. Despite diligent efforts to save the Bavarian company, it announced in mid-September that the employees of the Puchheim branch would have their employment contracts terminated at the end of the planned period in order to ensure an orderly winding down of business activities.
Proton Motor is part of the British company Proton Motor Power Systems PLC, whose Board of Directors came to the conclusion in November 2024 that “the orderly shutting down of the company” was the “most appropriate course of action.” Although alternative sources of funding were still being sought to keep the company in operation in 2025, no viable solution had been identified by the end of November. Proton Motor Power Systems shares have lost around 85 percent of their value in the space of a year.
At the end of August 2024, the main investor announced that it would be withdrawing from the financing by the end of 2024. Although outstanding customer orders would be fulfilled as far as possible, new contracts could only be concluded once financing and the future direction of the company had been clarified.
In the summer of 2024, Manfred Limbrunner, the Director of Communications, who has since been made redundant, announced that his company was planning to move to Fürstenfeldbruck by mid-2025, where a factory was to be built in which up to 5,000 fuel cell systems and 30,000 stacks could be produced automatically every year.
by Lewitz | Oct 6, 2024 | Asia, Fuel cells, international, Market, Nikola Motors, Stock market, worldwide
The press conference in February 2024 regarding the fourth quarter and the entire year of 2023 has confirmed an optimistic assessment of Nikola Motors. In the past year, 42 TreFCEV trucks were manufactured, of which 35 were delivered in the fourth quarter. These trucks are already in high demand, although there are still supply chain bottlenecks. Nikola plans to sell between 300 and 350 hydrogen trucks in 2024. Notably, the impressive availability of HVIP vouchers is a key advantage, with 99% of the requested 360 vouchers for hydrogen-powered vehicles being sold, offering a subsidy of up to $408,000 per vehicle.
Following the Hannover Messe in April 2024, which placed a strong focus on the hydrogen and fuel cell industry, Nikola has taken smart steps to concentrate on key markets. Particularly in California and Canada, where extensive funding programs exist, the demand for hydrogen vehicles is expected to rise. Through its subsidiary HYLA, Nikola plans to supply critical locations, such as port facilities in California, with hydrogen using mobile refueling stations before establishing permanent stations.
Additionally, Nikola has expanded its partnership with FirstElement Fuel, which operates hydrogen stations at important hubs and supplies 100 to 200 trucks daily with hydrogen. Currently, nine locations within the HYLA program are under development, with the potential for over 60 future hydrogen refueling stations.
The leadership team has also been strengthened. The new CFO, Thomas B. Okray, brings valuable experience from his time at Eaton and Amazon, while Jonathan Pertchik, the new board member, adds his successful track record from TravelCenters of America. These leadership changes are promising and position the company well for upcoming challenges.
With over $460 million in unrestricted cash, Nikola is well-prepared to tackle future challenges. The company is implementing cost-saving measures and optimizing production, which should help reach the break-even point sooner. For 2024, sales targets have been set at 400 to 450 trucks, which corresponds to an expected revenue of $150 to $170 million.
In summary, Nikola Motors is on a promising path. The demand for hydrogen vehicles is increasing, and ongoing innovations in hydrogen infrastructure will further promote the company’s growth.
AI-generated text based on the following sources:
- Nikola Corporation. (2024). Investor Relations.
- Reuters. (2024). Nikola Motors: Fourth Quarter and Full-Year Financial Results.
- Deutsche Presse-Agentur (dpa). (2024). Current Developments in the Hydrogen Industry
by Lewitz | Aug 16, 2024 | Germany, News, Policy
Industry criticizes current H2 funding policies
“Two years ago, we were still discussing an ‘All Electric World’ in Berlin. Now it’s clear we need both – molecules and electrons.” With these words, the state of Niedersachen’s economy minister Olaf Lies summarized well at this year’s Hannover Messe where we stand today. At the political level, however, this seems to not have been reached by everyone. Otherwise, the quasi funding freeze for H2 activities at present can hardly be explained. Reason enough for the Clean Energy Partnership (CEP) to send a pleading letter to Berlin (see p. 33) – and trigger for a palpable dispute among economic experts.
The state of Brandenburg’s economy minister Prof. Jörg Steinbach put it in a nutshell in Neuruppin May 2024: “We are currently heading partly in the wrong direction.” For example, fewer and fewer electric cars are being sold, so the discussion of whether removal of the combustion engine is the right thing has gained in momentum. The installation of heat pumps is weakening, with more oil burners being installed instead. And the CO2 price, which was already over 90 euros per tonne in 2022, fell at the beginning of the year to around 55 euros (May 2024: about 70 EUR). So hydrogen would need a minimum price of around 100 euros to be profitable.
The hope of promise from year 2023 is gone. Instead, uncertainty reigns. One of the reasons for this is the 60 billion euro gap in the federal budget, which – as feared – has had impacts on various projects. On top of that was the Bonhoff scandal, which led to the German transport ministry putting a stop on subsidies, and since then only pure battery-electric vehicles have been on the road. And the overall economic situation with minimal growth does not exactly inspire confidence at the moment either.
Final investment decisions (FIDs) have therefore, especially in Germany, hardly landed (even if a number of framework conditions have improved significantly, see H2-international May 2024), which has consequences. Steinbach said on the matter, “Some of our companies have lost their market leadership.”
Appropriate funding instruments demanded
The German hydrogen association (DWV) therefore is demanding an “EEG for H2” – a funding framework comparable to that of the renewal energies law (Erneuerbare-Energien-Gesetz) and also based on the US Inflation Reduction Act. DWV chairman Werner Diwald would like to use it to “bring the 10 GW of electrolyzer capacities onto the market” that the federal government has targeted, even if it is already clear today that even these will not be enough.
There are funding instruments, but they are either not enough or do not suit the industry. The IPCEI projects (Important Projects of Common European Interest) of the EU Commission have so far taken an extremely long time until approval, which is why some of the framework conditions at the time no longer apply and some projects no longer appear to be economically viable. Additionally, these are investment grants that are not considered sufficient for H2 production with high operating costs. In addition to CAPEX funding, OPEX funding is also required, the industry has been saying for months.
Funds from the carbon contracts for difference could also be used, but some companies also view these critically. Kilian Crone from Energy Hub Wilhelmshaven told the newspaper Handelsblatt: “They do give customers, so energy-intensive industrial companies, security for their investments, but as a basis for the hydrogen suppliers, so for an investment in an electrolyzer, they are not sufficient.” In Wilhelmshaven, where 5.5 of the planned 10 GW of electrolyzer capacity is to be built, are therefore calls for “additional start-up funding for the operation of electrolyzers” in the amount of 40 billion euros.
Economy minister of Niedersachsen Olaf Lies passed the ball back to industry, however, stating that it lacked a stronger commitment from the business community. There is “real substance there now,” but it needs “a stronger focus.”
The industrial sector naturally sees this quite differently and is trying to make itself heard. For example, the Clean Energy Partnership (CEP), an association of various stakeholders, particularly from the automotive and energy sectors, initiated a joint statement with the DWV and on April 27, 2024 turned to the federal government with urgent words (see next page).
It is “normal for some projects to be canceled,” stated Peter Michael Holzapfel from Siemens in view of the prevailing uncertainty, but at this time Germany is in danger of squandering its starting advantage in the H2 sector.
Economically grim against the council
The funding debate is also currently taking on a whole new dimension, as the German Council of Economic Experts (SVR) has publicly disagreed on this for the first time. Veronika Grimm recently cast a minority vote in favor of H2 commercial vehicles, while four Council members jointly spoke out in favor of purely battery-electric funding. According to the newspaper TAZ, Grimm fears that a focus on battery mobility would mean that Germany in the development of fuel cells for mobility applications “may be irretrievably thrown back behind international competitors in terms of technology.”
This vote has nothing to do with the fact that she has taken on a supervisory board position at Siemens Energy or on the board of the Zentrum Wasserstoff Bayern (hydrogen center of Bavaria, H2.B), according to the Prof. who studied at TU Nürnberg. There have been minority votes before, but not in connection with such compliance allegations. She is only interested in a less risky, multi-track positioning for Germany, according to Grimm. And the German government, which the expert council is supposed to advise, has assessed the mandate as unobjectionable.
To the economics newspaper WirtschaftsWoche she stated: “The expansion of a nationwide charging infrastructure for battery-powered cars and trucks on freeways places demands on the electricity grid and requires a huge amount of space…. Whether the realizable infrastructures can meet the requirements of the traffic is in the stars.”
Cabinet agrees on H2 acceleration law
Whether the hydrogen acceleration law (Wasserstoffbeschleunigungsgesetz) that was approved by the Bundeskabinett on May 29, 2024 can still help much remains to be seen. Because before this can actually come into force, the draft must be handled by the Bundesrat (federal council) and then also the Bundestag (federal parliament). The aim is to set the legal course for the accelerated development and expansion of the infrastructure for the production, storage and import of hydrogen.
Robert Habeck, federal minister for economy and climate protection, stated: “An effective hydrogen infrastructure is crucial for the decarbonization of industry; hydrogen pipelines will carry the lifeblood of industrial centers. Time is of the essence. In order for electrolyzers or import terminals to go into operation as quickly as possible, we need leaner and, above all, faster planning and approval procedures. With the Wasserstoffbeschleunigungsgesetz, the course is now set. The law removes obstacles to the approval of infrastructure projects that produce, store or import hydrogen. This is another milestone on the road to the hydrogen economy.”
The bill aims to make changes to environmental and public procurement law. Accompanying changes to the energy industry law, highway and regional development law and administrative court ordinance will come. For example, there are to be maximum deadlines for approval procedures under water laws, digital approval procedures, facilitation for the early start of measures, accelerated tender award procedures, shorter time to review court decisions and accelerated summary proceedings as well as reducing the amount of official testing required during the modernization of electrolyzers.
Very important: The infrastructure projects of the hydrogen acceleration law are then in the overriding public interest – similar to the acceleration of the expansion of renewable energies. Additionally, approval procedures for electrolyzers should be simplified by an amendment of the 4th ordinance for implementation of the emissions reduction law (BImSChV) and for some (< 5 MW) completely waived.
H2Regional concept of the BdWR
The Bund der Wasserstoffregionen (band of hydrogen regions, BdWR) called for special funding in mid-May 2024 to support the transformation process, particularly for small and medium-sized enterprises. This alliance of various political players who aim to implement regional hydrogen concepts see an imbalance in the current funding architecture. Because the few investment decisions made so far have primarily gone to big industry, so that they can decarbonize their energy supply. An “incorporation of hydrogen will not be possible for small and medium companies and the transport sector,” fear the mayors as well as district administrators of the now over 30 Hydrogen Regions as well as the German association for gas and water standards (DVGW).
Volker Wissing, Source: Nadja Wohlleben
The H2Regional concept submitted to federal transport minister Volker Wissing provides targeted incentives that enable regional economic players to make their own investments in the transformation. This impetus is intended to address both investment costs (CAPEX – primarily in the transport sector) and operating costs (OPEX – primarily H2 generation and process heat supply).
Dr. Stefan Kerth, Landrat (district head) of Landkreis Vorpommern-Rügen, stressed, “SMEs rooted in the regions are not only the much-cited ‘backbone of the German economy,’ but continue to be a key engine of growth. It is also up to the German government to enable these players to participate in the ramp-up of the hydrogen economy in an economically viable manner.” Prof. Gerald Linke, chairman of the DVGW and one of the speakers for the BdWR, supplemented, “The ramp-up of the hydrogen economy in Germany can only succeed if it takes place regionally…. These companies now urgently need a support framework tailored to their needs…. By the strengthening of the regional players, the whole country benefits.”
Author: Sven Geitmann
by Lewitz | Jun 13, 2024 | Energy storage, international, News
Solar Global operates electrolyzer plant in Czech Republic
An electrolyzer in the town of Napajedla in southeastern Czech Republic has produced the country’s first green hydrogen from solar power. The industrial green hydrogen production facility is run by Solar Global, one of the leading companies in the Czech renewables sector.
This hydrogen plant should be seen primarily as a pioneering initiative since its capacity of 230 kilowatts is relatively low. It can consume up to 246 megawatt-hours per year of electricity. The power is sourced from a photovoltaic plant with a peak capacity of 611 kW. Battery storage is used to buffer the discrepancies between generation and consumption. In line with the Czech hydrogen strategy, most of the hydrogen ends up as fuel.
“Green hydrogen produced in this way can be used at the refueling station in Napajedla to fill up not just trucks and buses, but also cars with environmentally friendly hydrogen propulsion,” explained Vítězslav Skopal, owner of Solar Global Group. According to Solar Global, the plant can supply around 8 metric tons (8.8 US tons) of green hydrogen. This is enough to enable a car to travel 800,000 kilometers (500,000 miles) and a hydrogen bus to travel 80,000 kilometers (50,000 miles).
Covering the entire value chain
Hydrogen production is expected to develop gradually into a major area of industry in the Czech Republic. As this happens, the Solar Global Group foresees an entire value chain developing alongside it. In addition to hydrogen production, the company has its sights set on the operation of vehicles equipped with fuel cells. Ultimately, the corporation also wants to get involved in the supply of hydrogen via refueling stations. “Of course all this depends on the building of other requisite technologies, in other words hydrogen compression, storage and refueling stations, and these are the next stages of our pilot project,” said Skopal.
The production of the country’s first kilogram of hydrogen was funded by the State Environmental Fund of the Czech Republic or SEF CR, which has been in existence since 1992. So far the environment ministry has financially supported four electrolyzers from the environment fund. “Two further projects are under examination,” stated Lucie Früblingová, spokeswoman for the state environment fund. The schemes under which hydrogen projects can receive support are currently being widened. The number of assisted projects and the amount distributed in subsidies are set to rise in the future.
Traditional producers look to green hydrogen
Among those due to receive funding is Orlen Unipetrol, the Czech Republic’s largest producer of “gray,” fossil-based hydrogen. The company, which is part of Polish petroleum giant Orlen, intends to install an electrolyzer in conjunction with a solar power plant in Litvínov. Groundwork will begin sometime between 2024 and 2025, with the production of green hydrogen slated to start at the end of 2028. However, Unipetrol is well aware that its own production can only cover a fraction of its hydrogen demand and is already considering hydrogen imports.
Another electrolyzer being aided by the environment fund belongs to the Sev.en Energy Group. The mining company operates what was once the extensive opencast brown coal mine in Most, Komořany, which will soon be exhausted, as well as the associated coal power plants. Sev.en is planning a massive expansion in solar power plants totaling 120 MW. The proposals include a 17.5-MW electrolyzer that will manufacture 360 metric tons (400 US tons) of green hydrogen a year starting in 2027. The costs for the hydrogen system, according to Sev.en’s head of transformation Pavel Farkač, run to around CZK 700 million, which equates to EUR 28.5 million, a substantial proportion of which is to be covered by subsidies from the environment fund.
In October 2023, the Czech government presented the draft of an energy and climate plan for the years leading up to 2030. The press release from the environment ministry stated that the use of hydrogen would increase within industry and the mobility sector by the end of the decade. The plan also foresees that electricity derived from brown coal will no longer be exported.
Author: Aleksandra Fedorska
National hydrogen strategy for the Czech Republic: www.hytep.cz/images/dokumenty-ke-stazeni/Czech_Hydrogen_Strategy_2021.pdf
by Lewitz | Apr 30, 2024 | Development, Europe, Fuel cells, Germany, News
“Today is a good day for industry location Germany, climate protection and sustainable jobs in our country” – German economy and climate protection minister Robert Habeck was referring to the first bidding process for carbon contracts for difference, which the German government launched in mid-March 2024.
Fig.: Robert Habeck explains his policy
Habeck.jpg – Wolf, bitte die Bildqualität so gut wie möglich optimieren
Source: Screenshot BMWK (German economy ministry) video
“With the carbon contracts for difference, firstly, we are promoting modern, climate-friendly industrial systems of tomorrow. Through this will come new technologies, value chains and infrastructures. This helps, secondly, industry worldwide to switch to climate-friendly production. And thirdly, with the carbon contracts for difference, we are setting new international standards for efficient and low-bureaucracy funding,” he added.
Abroad, this step will be admired with envy, according to Habeck: “Cool what you’re doing in Germany. We want that too.”
Even if some people in Germany don’t like to hear that – because they are all too willing to participate in Habeck bashing – you have to give him credit for getting a lot of things off the ground during his time in office. And if representatives of the chemical industry in particular describe these carbon contracts as a “right step,” not everything can have been wrong.
Opinions on Habeck are currently divided: For some, he is not green enough, too pro-business, too industry-friendly – for others, he is too green, too idealistic, too poetic.
But if you look at what has been kicked off in recent months – in particular due to Habeck’s commitment – it can be seen, even with strong climate protection glasses: Germany has come through the last few winters well and now has several LNG terminals built in record time. Germany is gradually getting the energy policy framework that so many people have been calling for, which provides planning security – be it in the heating or transportation sector, but especially in the industrial sector.
Germany is making efforts to keep energy-intensive companies in the steel, glass, cement and chemical industries in particular in the country and to accommodate them. Germany is also forging international partnerships for the import of hydrogen and the transfer of technological expertise (see H2-international May 2024: p. 12 – Norway as partner country of Hannover Messe).
In addition, the IPCEI projects are finally gaining momentum (see p. 28), and even the update to the 37th ordinance on implementation of German emissions reduction law (37. Verordnung zur Durchführung des Bundes-Immissionsschutzgesetzes) was passed by the German parliament on March 14, 2024.
These and many other measures have led, among other things, to a 10.1 percent reduction in climate emissions in 2023 compared to 2022, which corresponds to the largest decrease in CO2 equivalents since 1990.
Yes, this decline is certainly due in part to Germany’s currently reduced economic strength. So? It is quite clear that a transformative process in the energy sector means that production cannot continue at the same level as before. And exactly this is wanted, because we can no longer afford to waste as much energy and as many resources as before.
A moderate decline in economic power is, in my opinion, very manageable for the time being and should be viewed positively, as this is precisely what will break up outdated structures and ensure the country’s future viability. It will now be a matter of keeping the right degree in sight, to find a balance between pressure to act and reasonableness.
This applies not only to the government, but also to the people, who also possess a great deal of responsibility – be it the choice of the next car or the next heating system. Less grumbling and more sustainable action can sometimes work wonders.
