Flow measurement of high-pressure gas and liquid hydrogen
In the field of flow measurement, the use of hydrogen, especially regeneratively produced hydrogen, as a process gas and energy carrier has become a focal point in many applications. Due to the need to use storage capacity efficiently, hydrogen must be stored under high pressure or in liquid state. Metrologically verified quantity measurement is needed for the low to high pressure range of gaseous and liquefied hydrogen applications. In addition, appropriate traceability chains to the SI system need to be established for the wide range of operating conditions in order to make valid statements about the measurement accuracy and stability of the flow meters used. The EMPIR project 20IND11 MetHyInfra addresses these challenges by providing reliable data, metrological infrastructure, validated procedures and normative support.
Critical Flow Venturi Nozzles (CFVN) are widely used today and represent a standardised and accepted method of flow measurement. The main details of the shape and theoretical model are defined in the ISO 9300 standard. CFVNs are used in legal metrology and are recognised as a reliable standard with high long-term stability. The low cost and low maintenance CFVNs provide stable, reproducible measurements with a well-defined geometry and are only dependent on the gases used. The ISO 9300 standard describes two nozzle shapes, cylindrical and toroidal. In reality, however, the nozzle contours manufactured to this standard deviate from these ideal shapes. In most cases, the actual shape is between the two ideal shapes.
The achievable measurement uncertainty is also limited by the quality of the models of the thermophysical properties of the gases to be measured. The current reference Equation of State (EoS) for normal hydrogen (n-H2) was developed by Leachman et al [1]. Due to the limited thermodynamic measurement data available for n-H2 with comparatively high measurement uncertainties, the uncertainties for the various properties are generally an order of magnitude higher than for other gases.
Therefore, in this project, new Speed of Sound (SoS) measurements were performed at temperatures from 273 to 323 K and pressures up to 100 MPa. The data obtained were used to develop a new EoS for n-H2 optimised for gas-phase calculations [2]. The measurements made it possible to significantly reduce the uncertainties of the SoS calculated from the EoS in the investigated temperature and pressure range.
Extensive Computational Fluid Dynamics (CFD) simulations were carried out in the project to gain further insight into the flow physics in the nozzle. For this purpose, a numerical model for high-pressure hydrogen flows in the CFVN was developed in OpenFOAM, taking into account various relevant gas effects such as compressibility effects, boundary layer effects and transition effects. The results obtained are in much better agreement with the experimental data than previously available implementations.
In order to be able to evaluate and compare the flow behaviour of non-ideal nozzle contours, CFD simulations were also carried out for the ideal nozzles investigated experimentally in this project, as well as for parameterised nozzles. The flow coefficient of these non-ideal nozzles can be predicted very well using the proposed nozzle shape characterisation. The implementations developed in the project are freely available [3].
Figure 2: Mobile HRS flow standard
As there is currently no test facility with traceable standards available, that can be used to calibrate CFVNs directly with high pressure hydrogen, an alternative method had to be developed. The chosen approach is to calibrate a Coriolis flow meter (CFM) under high pressure conditions (range 10 MPa to 90 MPa) with a traceable gravimetric primary standard, so that it can later be used as a reference for the nozzle calibration.
The H2 test filling station (Hydrogen Refuelling Station, HRS) at the Centre for Fuel Cell Technology (ZBT) in Duisburg was selected for the calibration of the reference meter. For the measurements, a Rheonik RHM04 CFM was installed as a reference flow meter in the “warm zone” of the HRS, i.e. upstream of the heat exchanger and the pressure control valve. In this area, the temperature is always close to the ambient temperature and the pressure is constantly high, typically around 90 MPa. A mobile HRS primary flow standard was used for the calibration, which was connected directly to the HRS and thus took the role of a vehicle.
In the final step, the results of the CFVN measurement campaign will be compared with those of the CFD simulations. The newly developed EoS will be used in both the measurement campaign and the CFD simulations in order to compare both results in the best possible way.
Measurement method for liquid hydrogen
In addition to gaseous hydrogen, the project focuses on liquefied hydrogen (LH2). There are currently no primary or transfer standards for the measurement of LH2. The uncertainty associated with using a flow meter to measure the quantity of LH2 is unknown and unquantified as there is no direct traceability to calibrations using LH2 as the calibration liquid. The lack of calibration facilities means that meters used with LH2 must be calibrated with alternative liquids such as water, liquid nitrogen (LN2) or liquefied natural gas (LNG).
The project has therefore developed three approaches based on completely independent traceability chains for LH2 flow measurement. The first two approaches are applicable to flow rates during loading and unloading of LH2 tankers (flow rates up to 3,000 kg/h for a DN25 cross-section at pressures up to about 1 MPa), the third for smaller flow rates (4 kg/h for a DN3 cross-section at pressures up to about 0.2 MPa).
The first approach is based on the evaluation of the transferability of water and LNG calibrations to LH2 conditions. The study will identify and analyse potential uncertainty contributions for cryogenic CFMs. The experimental and theoretical analysis will serve as a basis for guidelines for the design and selection of CFMs suitable for SI traceable LH2 flow measurements. CFMs are a well-accepted technology for direct measurement of mass flow and density of liquids and are typically used in cryogenic custody transfer for transport fuel applications.
The literature review identified several temperature correction models applicable to LH2 flow measurement, i.e. how the LH2 flow measurement should be corrected due to temperature effects affecting the CFM measurement. Numerical finite element methods (FEM) for U-shaped, arc-shaped and straight pipe designs have been used to predict the temperature sensitivity of CFMs for LH2 flow measurement [4]. Finally, FEM can also be used to estimate the achievable measurement uncertainty using the current state of the art for LH2 flow measurement.
The second approach is based on cryogenic Laser Doppler Velocimetry (LDV) and is referred to as “Référence en Débitmétrie Cryogénique Laser” (RDCL). Traceability is ensured by velocity measurements and it can be used either as a primary standard or as a secondary standard for flow measurements of LH2. Its in-situ calibration uncertainty in cryogenic flows (i.e. LN2, LNG) has been estimated to be 0.6% (k = 2) [5]. Since the RDCL can be installed in any LNG plant, it has the advantage that a representative calibration can be performed directly in the plant under process conditions.
Figure 3: LDV standard for traceable cryogenic flow measurement
The third approach is known as the vaporisation method. Traceability to SI units is ensured in the gas phase by calibrated Laminar Flow Elements (LFE) after the liquefied gas has been evaporated. The LFEs are traceable to the Physikalisch-Technische Bundesanstalt (PTB). As with the first approach, the transferability of alternative liquid calibrations using water, LN2 and liquefied helium (LHe) must be evaluated, as the calibration rig is not suitable for direct use of LH2 for safety reasons. The lower flow range and the fact that non-explosive gases are used are operational advantages of the evaporation method. Another benefit is the use of LHe (boiling point about 4 K) so that the uncertainty of the alternative liquid calibration is based on interpolation rather than extrapolation.
An important aspect to consider in the vaporisation method is the conversion of para hydrogen (para-H2) to normal hydrogen (n-H2), which has been studied in detail by Günz [6]. At low temperatures, para-H2 is present almost exclusively; at room temperature, the ratio changes to 25% para-H2 and 75% ortho-hydrogen (n-H2). Para-H2 and ortho-hydrogen differ significantly in certain physical properties such as thermal conductivity, heat capacity or SoS. These can strongly influence the gas flow measurement, depending on the measuring principle of the flow meter. LFEs used to measure gas flow at ambient conditions are not affected by this as density and viscosity show negligible differences, particularly in the temperature range of interest here.
In summary, the results of the project will increase the confidence of end users and consumers. The methods presented will ensure reliable measurement data, which is important for increasing the share of hydrogen in total energy consumption.
This project (20IND11 MetHyInfra) has received funding from the EMPIR programme co-financed by the Participating States and from the European Union’s Horizon 2020 research and innovation programme.
Literatur
[1] Leachman, J. W.; Jacobsen, R. T.; etc., Fundamental Equations of State for Parahydrogen, Normal Hydrogen, and Orthohydrogen, J. Phys. Chem. Ref. Data 38(3): 721-748 (2009) https://doi.org/10.1063/1.3160306
[2] Nguyen, T.-T.-G.; Wedler, C., etc., Experimental Speed-of-Sound Data and a Fundamental Equation of State for Normal Hydrogen Optimized for Flow Measurements. International Journal of Hydrogen Energy, 2024.
[3] Weiss, S. (2023). Derivation and validation of a reference data-based real gas model for hydrogen (V1.0) [Data set]. https://doi.org/10.5281/zenodo.10074998
[4] Schakel, M. D.; Gugole, F.; etc., Establish traceability for liquefied hydrogen flow measurements, FLOMEKO, Chongqing, 2022
[5] Maury, R., Strzelecki, A., etc., Cryogenic flow rate measurement with a laser Doppler velocimetry standard, Measurement Science and Technology, vol. 29, no. 3, p. 034009, 2018 https://doi.org/10.1088/1361-6501/aa9dd1
[6] Günz, C., Good practice guide to ensure complete conversion from para to normal hydrogen of vaporized liquified hydrogen, https://doi.org/10.7795/110.20221115
Authors: Oliver Büker, RISE Research Institutes of Sweden, Borås, Sweden, Benjamin Böckler, PTB Physikalisch-Technische Bundesanstalt, Braunschweig, Germany
Technology platform for high-rate electrolyzer production
The cooperative FRHY project, which forms part of the German flagship hydrogen initiative H2Giga, is aimed at scaling up electrolyzer manufacturing. Increasing electrolyzer production rates requires new technical solutions. To facilitate the development of these essential technologies a model stack was created as a point of reference. Named the FRHY Stack, it is a high-efficiency electrolyzer with the potential for industrial mass production which also supports knowledge and technology transfer.
The ten cells that in total make up the FRHY Stack each consist of two formed and joined plates referred to as bipolar plates or BPPs. These two half plates are initially stamped in a high-speed rolling process on a system newly developed by the Fraunhofer Institute for Machine Tools and Forming Technology IWU. They are then joined together in a welding process that has been adapted to take account of the high processing speed.
FRHY – the reference stack
Another key component is the proton exchange membrane or PEM which belongs to the membrane electrode assembly, otherwise known as the MEA. The membrane is fabricated in a new inkjet printing process devised by Fraunhofer ENAS. The BPP and MEA are embedded into a stiff film framework, the subgasket, to which various seals are added as well as the porous transport layer (PTL), more commonly known as the gas diffusion layer or GDL. The result is a cell design that is suitable for industrial mass manufacturing.
Within the stack, which consists of several cells, the medium and the hydrogen are conveyed through channels on the edge of each cell. Two gold-coated contact plates at the end of the stack supply the stack with energy.
The FRHY reference stack is suitable for a variety of application scenarios and has a high level of efficiency. It is the first time that the model hydrogen factory Referenzfabrik.H2 has made a platform available which will enable a number of sectors and organizations to perform technical and economic assessments of individual components, develop their own business model and position themselves in the supply chain.
In the initial development phase, a design portfolio was created to define the main parameters for creating cell or stack components and provide a means of contrasting different designs. This allowed two very functional designs to be configured that enable cells to be produced in large numbers. Version M is the type used for the FRHY Stack; its manufacturing potential is based on metal BPPs.
Version K was also developed. This features a newly created intelligent plastic frame that can be made in large numbers in an automated production process. Based on these designs, engineers were able to produce components and bring them together in the FRHY Stack.
As a result of the stack, there is now a valuable frame of reference for the development of the next high-rate generation of electrolyzers. Even electrolyzers in the (price-sensitive) kilowatt range are scarcely marketable without high-rate production processes. If, however, the sale prices are reasonable, a huge market would open up just to meet the energy storage needs of wind farms or residential buildings. What’s more, the stack could be used for application scenarios in the megawatt range. The coupling of stacks would allow plants to produce large quantities of hydrogen, for example in order to supply the manufacturing and raw materials industries.
Direction of FRHY project
FRHY is taking a technology-neutral approach to developing new modules for highly scalable electrolyzer production and to the configuration of digital twins. The objective is to create a portfolio of essential production steps for technical and economic assessment to help industry select the right production processes while considering key parameters, in particular scalability, quality and cost. For instance, production options can be calculated and possible manufacturing strategies can be analyzed, e.g., taking account of automation or integrative continuous process management. This approach not only allows capital costs to be quantified but also return on investment to be deduced in relation to the planned production quantity.
The FRHY methodology also enables production lines to be linked up into one overall value system. This creates transparency and supports the building of supply chains. In addition, it makes it easier to plan factories and make decisions about effective vertical integration.
The unbiased FRHY approach gives an enormous boost to production and testing processes for electrolyzers and ensures a high degree of technology readiness. A key focus here is on furnishing proof of robust and scalable processes. This will additionally benefit the quality and longevity of the product. This is because stable processes also ensure the economic mass production of high-quality electrolyzers and support the further advancement of both production and the product itself.
H2Giga and FRHY
The German education and research ministry is supporting Germany’s entry into the hydrogen economy through its backing of the H2Giga flagship hydrogen project. Over the course of the four-year initiative which runs until March 2025, the project will seek to overcome existing obstacles to the series production of large-scale water electrolyzers. FRHY is a joint project involving six Fraunhofer institutes: IWU, ENAS, IPT, IPA, IMWS and IWES. The decentralized structure means the project is able to incorporate regional partners and networks in Baden-Württemberg, Nordrhein-Westfalen and central Germany.
Potential
FRHY links up physical and virtual solutions and consequently has an enormous impact in terms of innovation on electrolyzer production. This approach has resulted in ambitious plans that will smooth the path toward electrolyzer mass production.
The development of new, configurable production and testing modules for key process steps in stack manufacture will lower production costs by at least 50 percent and improve product quality by 20 percent while also considerably extending the life of complete electrolyzer systems.
The research questions that need to be resolved primarily entail expanding the technological limits of electrolyzer production. Parallel to this, it is expected that the scientific findings will boost the development of a production-optimized next generation of electrolyzers. The FRHY project, and the FRHY Stack especially, have laid the necessary foundations to bring this about.
Digitally mapped production and testing modules are integrated into a technology portfolio for stack production. This toolkit combines the results from physical and digital analyses. For the first time this lets industry deduce urgently needed quantifiable information about output volumes, costs and areas of operation depending on the production method employed.
Opportunities
The FRHY reference stack is the first example of a solution being created to provide a platform for the industrial mass production of electrolyzer components. Deploying continuous roll-to-roll manufacturing technologies is not the only way to increase production volumes. New processes, too, that are consciously designed to make sparing use of critical materials, e.g., platinum, iridium and titanium, as well as in-situ testing technologies bring about a substantial decrease in production costs.
The result is a genuine point of reference and a technological “diamond in the rough” that companies can implement in an industrial setting. The reference stack therefore lays important groundwork for the future availability of hydrogen systems at affordable prices – and ultimately for a hydrogen retail price that is economically viable.
Fig. 2: Rotary stamping of bipolar plates: The structure of the bipolar plate is stamped by a pair of rollers. The main advantage of this method is the high processing speed that leads to a substantial increase in output figures, scaling effects and finally to a significant reduction in cost.
Referenzfabrik.H2
The overall coordination for the FRHY project is undertaken by the model hydrogen factory Referenzfabrik.H2 developed by Fraunhofer IWU. The objective of Referenzfabrik.H2 is to be a pacemaker for the industrial mass production of electrolyzers and fuel cells. The project brings together science and industry as part of a value-creation community that works in collaboration to swiftly ramp up the efficient, scalable production of hydrogen systems.
The factory is underpinned by Fraunhofer IWU’s research and development projects. Solutions that arise from these projects provide the basic structure for manufacturing. This is where industrial corporations are able to contribute their expertise and develop this further together with the participating Fraunhofer institutes and other industrial enterprises. Only through the close cooperation of academia and industry will it be possible to produce high-performance systems for mass deployment more rapidly and at more affordable cost.
Author: Dr. Ulrike Beyer, Referenzfabrik.H2 at Fraunhofer IWU
The decision has finally come. In mid-February 2024, the European Commission approved 24 German IPCEI projects aka Important Projects of Common European Interest. Within the framework of IPCEI Hydrogen, funding is granted to large-scale projects across the entire hydrogen value chain – from H2 production and transportation to storage infrastructure and industrial deployment.
These projects are approved by the European Commission in several “waves.” In the current third wave, attention was turned to infrastructure schemes involving a total of seven EU member states (Germany, France, Italy, the Netherlands, Poland, Portugal and Slovakia). Across all projects, the aim is to build almost 3,000 kilometers (1,900 miles) of H2 pipelines, more than 3.2 gigawatts of H2 production capacity in addition to approximately 370 gigawatt-hours of H2 storage capacity.
“While the renewable hydrogen supply chain in Europe is still in a nascent phase, Hy2Infra will deploy the initial building blocks of an integrated and open renewable hydrogen network. This IPCEI will establish the first regional infrastructure clusters in several Member States and prepare the ground for future interconnections across Europe, in line with the European Hydrogen Strategy. This will support the market ramp-up of renewable hydrogen supply and take us steps closer to making Europe the first climate-neutral continent by 2050.”
Vice President of the European Commission Margrethe Vestager, responsible for competition policy
“For a successful roll-out of renewable and low-carbon hydrogen, all pieces of the puzzle need to come together. With this new Important Project of Common European Interest, 32 companies, including 5 SMEs, will invest in hydrogen infrastructure, for a total of more than 12 billion euro of private and public investment, to match supply and demand of hydrogen. It provides industries with more options to decarbonise their activities while boosting their competitiveness and creating jobs.”
EU Commissioner Thierry Breton
“I’m pleased that the wait for European funding approval has come to an end. It means we have made an important step toward realizing our hydrogen project. I now hope that we will soon receive funding approval from the German government so that we have a good basis for making the final investment decision within our committees.”
EWE Chief Executive Officer Stefan Dohler
It is expected that member states will provide up to EUR 6.9 billion in public funding which will then unlock EUR 5.4 billion in private investment. Involved in the 33 projects is a total of 32 companies, with small- and medium-sized businesses among them. Thus the IPCEI Hy2Infra should go some way in “helping to achieve the objectives of the European Green Deal and the REPowerEU Plan,” according to Brussels.
Most of the participating companies have been waiting a long time for this go-ahead to be given, which will enable them to finally kick off their projects. It is anticipated that several large electrolyzers will be commissioned between 2026 and 2028 and a number of pipelines will be brought into service between 2027 and 2029.
Fig. 2: Hydrogenious LOHC Technologies plans, as part of its Green Hydrogen@Blue Danube project, to trial benzyltoluene as a hydrogen carrier for the purpose of ensuring safe and efficient transportation of green hydrogen for supplying industrial off-takers in the Danube region
The IPCEI Hy2Tech, which focuses on the development of hydrogen technologies for end consumers, was approved on July 15, 2022. This was followed in the second wave on Sept. 21, 2022, by the IPCEI Hy2Use which targets hydrogen applications in the industrial sector.
“IPCEI Hy2Infra contributes to a common objective by supporting the deployment of hydrogen infrastructure important for achieving the objectives of key EU policy initiatives such as the European Green Deal, the REPowerEU Plan and the EU Hydrogen Strategy.
All 33 projects included in the IPCEI are highly ambitious, as they aim at developing infrastructure that go [sic] beyond what the market currently offers. They will lay the first building blocks for an integrated and open hydrogen network, accessible on non-discriminatory terms, and enable the market ramp-up of renewable hydrogen supply in Europe. This will allow for the decarbonisation of economic sectors that depend on hydrogen to reduce their carbon emissions.
Aid to individual companies is limited to what is necessary and proportionate, and does not unduly distort competition.”
As of January 2024, the DWV has a slightly shorter name. Instead of being called the German hydrogen and fuel cell association (Deutscher Wasserstoff- und Brennstoffzellen-Verband e.V.) it will – once again – be known as the German hydrogen association (Deutscher Wasserstoff-Verband (DWV) e.V.). The latter is exactly the same name it had when the association was founded in 1996 before it was subsequently changed.
A statement from the association says that the name change is designed to underline “its technological openness and the diversity among its member companies” and its position as “the only national association for hydrogen which covers the whole value chain and expertly represents the interests of all hydrogen technologies (not just explicitly the fuel cell).” The decision to make the amendment was approved by a large majority at its 28th general meeting which took place last November in Berlin.
The Plug share price fell quickly to under 3 USD (2.50 USD at low) and then rose again to over 4 USD. At a price of less than 3 USD, it was possible to build up excellent trading positions (see H2-international Feb. 2024). Is there now a turnaround in the price trend or was this just a brief flare-up before the downward trend continues? Or will there even be an upward trend reversal?
There is a great opportunity for Plug Power to receive a credit (loan) totaling 1.6 billion USD from the US Department of Energy (DOE) as part of the Inflation Reduction Act. This is to come in the third quarter, although there are also rumors that it could be approved much earlier, but I won’t take part in this speculation. In this ideal scenario Plug will then have sufficient capital to establish and expand several production facilities, for example in Tennessee and New York, and start production there. The stock market will value this – if it happens – very positively: with higher share prices.
But a loan is borrowed capital that has to be repaid. What are the conditions? How high is the interest or coupon? What are the repayment arrangements? Will the loan be paid out immediately in full or in installments and with target definitions (milestones)? What is Plug doing with the money? If there is no clarity about this or the loan is not approved in the first place, then the stock market will be miffed or react in disappointment, with the consequence of falling share prices.
Parallel to this is running a share placement program (at-the-market) worth 1 billion USD. Of this, already over 305 million USD, through the placement of 77.4 million shares, have flowed into Plug’s account. This will also correlate positively with the DOE credit: If this is granted, Plug’s share price will – even if possibly only for a short time – climb, and this then enables the perfect placement of shares via ATM in the ramp-up. This money from the ATM program can be used to solve the short-term liquidity problem, since the cash on hand lay at just 135 million USD December 31, 2023.
There are also other possible difficulties, because the US Treasury Department is defining how hydrogen must be produced in order to receive the subsidy of up to 3 USD per kg. Plug is relying very heavily on this funding, but there are still questions: From which location must the regenerative energy come from, in what amount and at what point in time? And at which location must the electrolysis take place? With this are, like in the EU, a series of bureaucratic hurdles – unfortunately.
Disappointing figures
What are these figures: The turnover in fiscal year 2023 amounted to, instead of the expected 1.2 billion USD, only 891 million USD. The loss even amounted to 1.4 billion USD, which corresponds to a minus of 2.30 USD per share. The press conference on the results in March raised more questions than it answered.
For example, the material inventory is to be reduced by a value of 700 million USD via the delivery of finished products to customers. Whereas in 2023 only 400 million USD was invested in this area, no more capital is to flow into here in 2024.
The production at locations such as Georgia, Tennessee and Louisiana is to be ramped up and contribute to an increase in the profit margin. These sites are already capable of producing liquid hydrogen for the company itself and supplying it to customers. The Texas and New York sites will only be continued once the DOE loan has been approved, as otherwise they tie up too much liquidity.
In addition, there is to be price raisings (among others for H2, stacks and electrolyzers) and a cost-cutting program of 75 million USD. Liquid hydrogen is currently still being purchased, which entails losses, but is to be replaced by self-produced hydrogen.
After Plug Power – I reported in detail – established production facilities in the USA and internationally in a variety of ways and thus severely strained liquidity, the planned cost-cutting program amounting to 75 million USD is now to take effect. Whether this amount will be sufficient may be doubted, however, because it seems downright ridiculous in view of the Plug’s liquidity problems and comes much too late. That the company has started to produce liquid hydrogen at several locations and has delivered to customers like Amazon and Walmart is good news for now, but will at first have little influence on the company figures.
With orders for electrolyzers too has Plug scored, but it will be some time before significant sales and thus profits are visible here. That the Saudi sovereign wealth fund Public Investment Fund (PIF) at the end of 2023, with the selling of 5.67 million shares, has completely withdrawn from Plug is not a good sign.
Summary
Words must now be followed by deeds, because all too often very full-bodied forecasts have been made. That Plug will bring partners on board for some projects seems very likely. And also the spin-off (partial sale) of some units is conceivable, if liquidity cannot be adequately presented soon. However, there is currently no need for action. Plug is clearly on my watch list, though, as the company is active in the right markets at the right time. Once the financial problems have been solved, there will possibly also be changes in management, which has lost trust, and Plug will continue on its way.
Over 170 million shares sold short (short interest, status mid-February) are dubious, however, as there is massive speculation against the company or – keywords Amazon and Walmart (warrants) – a form of hedging is being used – no guarantees. All the same, already 10 million shares were short covered in January/February. On the other hand, it is this short interest that can sometimes have a price-driving effect via the covering (short squeeze) when good news is reported. Everything has two sides.
There is still no need for action, however, since the publication of the figures for the first quarter is pending. That various business media in Germany count Plug Power among their top investments in hydrogen befuddles me, though. There are more convincing H2 investments.fa
Disclaimer
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.
FuelCell Energy has with SOFC fuel cell power plants built its own capacities for clean energy totaling 62.8 MW (previous year: 43.7 MW). The company’s own high-temperature fuel cell serves as the basis for use in electrolysis, where the company has recognized great potential for itself. Along with that are various research projects, among others in Canada, and the company relies on specially developed carbon capture technology that is designed to avoid emissions and generate emissions-free energy at the same time. So far, so good. But you can’t avoid thinking of competitors such as Bloom Energy, Sunfire and Ceres Power (indirectly also Weichai Power and Bosch), which pursue similar visions and technological approaches to FuelCell Energy.
What all this means in terms of order and implementation potential is unfortunately not yet clear to me. The figures so far are sobering: The first quarter (fiscal year 31.01.24) brought a loss of 44.4 million USD. Turnover fell in the quarter to 16.7 million USD. Of liquidity, the company has no lack: 348.4 million USD was in the bank January 31, 2024. However, there has been a constant outflow of capital for years, aided by constant share placements on the stock exchange via an ATM program. Projects such as that with Exxon in Holland sound promising, but say very little about the potential. In South Korea, former partner Posco, via its subsidiary Korea Fuel Cells, forfeited the option of further orders in supplement to a previous project. Not a good sign.
Joint venture with ExxonMobil
At first glance, it sounds promising: FuelCell Energy and ExxonMobil have agreed to build a production plant for carbon capture in Rotterdam. It entails the avoidance of CO2 emissions or the storage and making usable, without generating a carbon footprint. CCS stands for carbon capture and storage. After successful deployment directly in the neighborhood of important industries, the project that is based on the technology of FuelCell Energy could be deployed at all production sites of ExxonMobil where CO2 emissions are generated. The process is to generate heat as a by-product and enable the production of green hydrogen.
Unfortunately, there is no indication of the exact investment volume (invest on the part of FuelCell Energy) and the order volume that can be derived from this. In any case, the project is financially supported by the EU via the Emissions Trading System Innovation Fund. ExxonMobil and FuelCell Energy have already been working on the associated technologies for some time, so this specific project represents another important milestone.
The cash cushion is safeguarding the share price well. The stock exchange will rediscover FuelCell Energy when it can be shown how technologies such as carbon capture and SOEC can generate orders and earn money. That will take some time. The share is always suitable for trading, as good news quickly leads to major price swings.
Disclaimer
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.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
