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.
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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.
The press conference in February 2024 on the fourth quarter results and the entire year 2023 and, above all, the outlook for the current fiscal year support my very optimistic assessment of this start-up. Of the 42 built Tre FCEVs, 35 were delivered in the fourth quarter. Seven are currently being tested by fleet operators. The battery-electric trucks, Tre EVs, after the problems with the batteries and their replacement in the course of the year, will return to their buyers by the end of the second quarter.
Nikola can immediately sell every built Tre FCEV, because the demand is there, but there are now not yet enough parts from suppliers. In 2024, 300 to 350 are to be sold. Strong is the position with the coupons called (California) HVIP vouchers, from which Nikola can sell almost all (99 percent, 355 out of 360) for hydrogen-powered vehicles. We’re talking about up to 408,000 USD subsidization per FC truck. With the BEVs, there were 95 vouchers by the end of January 2024.
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Focusing on California and Canada in the initial phase is smart in view of the support programs there. In parallel, Nikola is working via its subsidiary HYLA on important locations (including port facilities in California such as LA or in Orlando, Florida) to initially supply the necessary hydrogen with the help of mobile H2 refueling stations (significantly less regulatory work than with fixed locations), to then set up fixed H2 refueling stations depending on experience and demand.
On top of that is the partnership with FirstElement Fuel, a company that already operates locations at important hubs (ports such as Orlando) and supplies 100 to 200 trucks per day with the necessary hydrogen there. Sufficient hydrogen is available in any case, according to a take from the press conference. That already includes the Tre FCEVs to be delivered and their H2 requirements. Currently in development are nine locations of their own HYLA program in addition to those of FirstElement Fuel. Altogether, over 60 H2 refueling stations will emerge there in the future.
All important positions filled – with top talent
The CFO position has now also been filled: Thomas B. Okray is the new chief financial officer. He can boast an impressive CV: Okray was CFO at companies like Eaton, but also in a leading position in the logistics division (fulfillment) at Amazon and 14 years in top positions at GM – also as CFO.
With Jonathan Pertchik, Nikola is bringing in a managing director that already been successful as CEO at TravelCenters of America. The company was acquired by BP and is one of the largest truck stop operators in the USA. Here someday, hydrogen refueling stations from Nikola could be positioned – comparable to Pilot Flying J – if it came to a cooperation (an idea).
Ole Höfelmann will be, via the subsidiary HYLA, president of Nikola Energy. Before, he was responsible for the company’s global infrastructure activities. In his career, he has held numerous management positions for 30 years at Air Liquide, among other things as CEO of Air Liquide Spain with 3,000 employees. In addition, he worked at Plug Power as head of the electrolysis division. Furthermore, he is a board member of various associations such as the California Fuel Cell Partnership.
Carla Tully completes the executive board. She has held leadership positions in Fortune 150 companies, among other things as co-founder of Earthrise Energy (over 1.5 GW of renewable energy), was on the board of the Citizens for Responsible Energy Solutions Forum and in management positions at MAP Energy (2.4 billion USD market cap) and AES Corp. Nikola can thus draw on extensive expertise in the areas of M&A, private equity and CSR. Therefore, Nikola is optimally equipped for the future in all leadership positions.
Truck in use – Customers very satisfied
Several customer reports on long-distance journeys with hydrogen-powered trucks are very positive: Coyote Container drove from the Port of Oakland to Long Beach, then to Iowa and Ontario and back to the Port of Portland – 866 miles (1,393 km) on just one tank of H2. MTA Trucks drove 519 km (322 mi) from Edmonton to Calgary and back. The tank was still 40 percent full at the end of the route – at minus ten degrees Celsius. Other examples refer to trips of over 1,000 miles in one day with a full load.
Special potential with the Badger?
Yes, you read correctly: In 2023, Ember acquired the market rights (IP, design) and prototype for this strong-looking SUV named Badger from Nikola. Nikola sold these items as part of an equity swap (exchange via contribution in kind) to Ember and received 30 percent of the company in return. No capital will flow from Nikola, as it is concentrating on the e-truck. Certain is that the Badger, as an FC/battery SUV, could give serious competition to the Cybertruck of Tesla, should it come onto the market in time. Whether Ember and other OEMs and partners will actually implement this project is, however, still unclear.
Psychologically, however, it is a strong sign that Nikola is indirectly in the boat here. It will be interesting to see. Because the Badger once served as the basis for a cooperation with GM and resulted in a two-digit billion valuation of Nikola Motors at the stock exchange. There were 6,000 pre-orders at the time. Just think of it as a nice side topic, but it could be very exciting when things get concrete here and well-known names such as Magna, Dana, GM and many others pick up the ball. Consider this: The design of such a car too, which you already have, also costs a lot of capital – not to mention that the start of production requires a lot of capital, even if there are companies (OEMs) that could ramp up existing production capacities very quickly. Then, the Badger would be on the market in just a few years. Anything is conceivable.
Summary
With over 460 million USD in free capital (unrestricted cash), the company is initially well positioned. Cost-cutting measures, optimization and normal scaling effects in production (the more trucks are built and sold, the lower the unit price and the closer the break-even point becomes) will characterize the year as a whole, where the capital use on a quarterly basis is to noticeably sink. And 400 to 450 trucks of both types are the initial sales target for 2024, with expected turnover at 150 to 170 million USD. It should be noted, however, that order intake could end up significantly higher, even if it doesn’t affect turnover until 2025.
Nikola is still in the start-up phase. Theoretically, 2,400 trucks per year could already be produced if all supplier parts were available. As far as the share price is concerned, CEO Stephen Girsky repeated himself, Solomon-like, when he said – to the effect – that the stock market itself will be the best judge if the forecasts made come true. Bound to that is my expectation that we will soon see prices of over 1 USD (or significantly more) again when what is forecasted happens. A reverse split (share consolidation) as a measure to raise the share price over 1 USD is then naturally superfluous. (With a price of under 1 USD, it can theoretically come to a delisting of the NASDAQ on July 7 after a 180-day period that however can be extended.)
The price behavior of the share at this time will still be dominated by short sellers and naked short sellers that massively bet against the company and the share price. Mid-February, 217.6 million shares were sold short. This short interest could with good news lead to short covering (in the extreme case to a squeeze) – is my personal view, and only that.
On the other side, institutional investors like Norges Bank (who holds 10.25 percent in Nikola), Blackrock, Vanguard and others are buying, which can be seen as a good sign and should. Against the company founder Trevor Milton Nikola has already won in court, and it is now working on an enforcement title. After all, it entails 165 million USD. Milton still holds over 51 million shares, which could possibly be collected as a partial payment – no guarantees.
The share price is now being driven primarily by incoming orders for e-trucks. Out of the current test series with fleet operators could result – is my expectation – also many a large order.
Nikola is to be seen as a start-up. This is a new, disruptive market at the beginning of a long-term trend. Until the transition to the profit zone (2025/26), a lot of capital still needs to be invested (logical losses), but the stock exchange will gladly make it available if the forecasts come true and anticipate it in the share price development. The investment bank Baird recently announced a target price of 2 USD. Other investment banks may follow. The volatility of the share will remain very high. Daily fluctuations of five or even more than ten percent are normal. Not for investors with weak nerves.
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.
Hyzon Motors will start production of 200‑kW modules for commercial vehicles in the USA in the second half of 2024. This should then lead to a recovery of the strongly depressed share price via incoming orders. Parallel to this are running product presentations such as the recent one in Melbourne (Australia) with the 200‑kW Hyzon Prime Mover at the Kangan Institute Automotive Centre of Excellence. Deliveries in New Zealand, Australia, Europe and the USA are planned for later in the year. This fuel cell system can be used in many other applications and markets at the same time: rail vehicles, maritime transport, stationary energy, mining vehicles, etc. It will be interesting to see which customers this 200‑kW single stack will find and the order potential that will result, especially as it offers a cost reduction potential of over 25 percent and conserves 30 percent of the space and weight – compared with a 110‑kW system. A first major market for Hyzon will be the employment in commercial vehicles in Australia, where the company has an important location with around 50 employees.
Patent registrations – Competition with Toyota and Bosch
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Hyzon Motors has applied for a number of patents in the USA, Europe and Asia and many have already been granted. The main focus here is on reducing emissions when using fuel cells, but also on battery systems. What this means in detail is not clear to me, but shows that Hyzon is very active in securing patents and sees in it an important basis for its FC products and utilizations as well as markets. This would put them in direct competition with companies such as Toyota and Bosch. This could – purely theoretically – eventually lead to license revenue.
Hyzon still has with over 100 million USD sufficient capital, but will not be able to avoid taking measures (issue of new shares or participation of a strategic investor) to finance the company’s growth and expansion. The production facility in Illinois is self-financed. Production ramp-up is beginning in the second half of the year. Incoming orders for the FC modules as well as speculation by a strategic partner or investor make the share of Hyzon Motors a very interesting speculation, although the investment is to be classified as highly speculative as you’re dealing with a start-up.
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.
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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.
AI and hydrogen are the focus of this year’s Hannover Messe. H2‑international’s trade fair preview is showing what’s new to see at the Hannover Messe and especially Hydrogen + Fuel Cells Europe.
The transformation of industry towards climate neutrality is gaining more and more momentum. Which is why the decarbonization of industry is also at the center of interest at this year’s Hannover Messe. The energy industry has a crucial role to play in this. The transformation is based on two drivers: artificial intelligence (AI) and hydrogen. Because it is clear that a climate-neutral industry without a hydrogen economy is inconceivable.
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Over 500 exhibitors on the topic of hydrogen will be represented at Hannover Messe 2024. Most of them in the context of the Hydrogen + Fuel Cells Europe fair in Hall 13. Also this year’s partner country, Norway, with its motto “Pioneering the Green Industrial Transition,” is putting carbon-neutral production and new digital solutions in focus at its hydrogen pavilion (Stand D30). Likewise under the banner of the hydrogen economy is the Norwegian-German energy conference “Renewable Dialogue – North Sea Energy Hub,” which will take place in the Convention Center April 23, 2024. This conference particularly aims to concretize business models of the H2 economy. Hydrogen is also a central component of the All Electric Society Arena. This arena is directly connected to the ZVEI stand in the middle of Hall 11, Stand B58.
What products, services and business models the hydrogen economy already offers today will be shown by exhibitors of Hydrogen + Fuel Cells Europe. Important players and innovations H2‑international is introducing in this trade fair preview.
Fuel cell technology
Proton Motor Fuel Cell GmbH is presenting at the Hydrogen + Fuel Cells Europe its fuel cell system HyModule S4. It is conceived for stationary applications in residential buildings and small industrial complexes and as an emergency or off-grid power supply. The device offers a lower power range of 4.1 kWel and an output voltage range of 28 to 55 VDC. The H2 supply pressure is 1.5 to 7 bar. The HyModule S4 uses the liquid-cooled FC technology HyStack 200 from Proton Motor and can be used in an ambient temperature of 5 to 40 °C.
Fig. 2: The FC system HyModule S4 for stationary applications, Source: Proton Motor, Proton Motor, Halle 13, Stand E34
The automotive group Honda is coming to Hannover with the prototype of its new fuel cell module. The module is designed for H2 cars, commercial vehicles, construction machinery and stationary power generators. The fuel cell in compact dimensions has a high output power and a fast start-up time, even in environments with low temperatures. For use in heavy-duty commercial vehicles, Honda has already begun, together with Isuzu Motors, to test the fuel cell drive of the next generation. A prototype is already out on public roads. The launch of a series model is planned for 2027.
Fig. 3: The FC module FCS-26 from Honda is also suitable as a clean and quiet emergency power source, Source: Honda Honda, Halle 13, Stand C56
SFC Energy, manufacturer of hydrogen and methanol fuel cells, has expanded the performance class of its mobile solution Efoy H2Genset. The mobile solution is intended as an alternative to conventional diesel generators. It can be used for a multitude of applications, e.g. on construction sites, at events, at festivals and in remote locations with temporary power requirements.
Fig. 4: Mobile fuel cell device for use on construction sites or at festivals, Source: SFC Energy, SFC Energy, Halle 13, Stand C04
Ballard Power Systems does not have its own presence at this year’s Hannover Messe. However, the company is part of a Canadian delegation participating in a joint presentation of over 300 exhibitors from 25 countries in the field of hydrogen and fuel cell technology. Currently, there are nearly 4,000 trucks and buses worldwide driven with fuel cells from Ballard (see also p. 61). The fuel cells are also used in several hydrogen ships, trains and hydrogen projects with global partners. At the Hannover Messe, Ballard will be temporarily represented in the Canadian pavilion by an expert in fuel cell technology.
Ballard Power, Halle 13, Stand D40
Hydrogen supply
AEG Power Solutions equips hydrogen plants with direct current supply systems. The company’s electrolyzer power supply is designed to provide stable current and power over a wide voltage range. It is suitable for the production of green hydrogen with fluctuating renewable energy sources, as these electrolyzer converters offer high DC dynamics and high efficiency in terms of grid conformity, even in partial load operation. To reduce space requirements, installation time and costs, AEG Power Solutions offers scalable plug & play solutions. These solutions can comprise up to eight DC-3 modules in parallel, which deliver up to 16 MW, 1,500 VDC and 25.6 kADC.
Fig. 5: The plug & play electrolyzer power supply comprises up to eight DC-3 modules, Source: AEG Power Solutions AEG Power Solutions, Halle 13, Stand B45
The company Siqens has developed an electrochemical hydrogen separation technology (EHS). In contrast to the electrolysis of water, the company wants to use it to produce hydrogen from biogas, methanol or methane. According to the manufacturer, the EHS process also allows the separation of hydrogen from natural deposits. Another application is the separation of hydrogen that will be transported via the natural gas grid.
Fig. 6: The EcoCabinet from Siqens, Source: Siqens, Siqens, Halle 2, Stand A42
Fuel cell and electrolyzer components
The new humidifier HumidiPower from Pentair is designed for PEM fuel cells. It acts as a heat and moisture exchanger. According to the manufacturer, the device has a patented, spiral-wound hollow fiber design, to ensure efficient moisture transfer to air and other gases. A low pressure drop should minimize energy consumption. The moisture removed from the exhaust gas of the fuel cell is reused in the purge gas.
Fig. 7: The HumidiPower ensures sufficient moisture in the PEM fuel cell, Source: Pentair, Pentair, Halle 13, Stand F46
Parker Hannifin is showcasing the latest developments in the field of fuel cell technology at its stand. At an interactive table, visitors can take a look inside an electrolyzer receptacle and search for Parker components in it. New is the horizontal gas filter Peach Gemini PuraSep. The filter contains two stages and two drums each. The upper drum is used to separate solids and liquids, while the lower drum collects the liquid. Some of the solids flow into the lower drum below the first stage, but most of the solids collect on the elements and on the bottom of the upper barrel of the first stage. Likewise new is a humidifier for FC vehicles and the H70-08-HRS hoses for H2 applications.
Fig. 8: At an interactive table, visitors can take a look inside an electrolyzer receptacle and search for Parker components in it Source: Parker Hannifin, Parker Hannifin, Halle 13, Stand C55
Fischer Fuel Cell Compressor from Switzerland manufactures air compressors for fuel cell systems. Their special storage technology should then enable high performance and efficiency even when the fuel cell system is operating at high altitudes. Therefore, in addition to the classic FC applications in vehicles, trains, ships or stationary units, the compressors also have a place in aviation. The devices are not only in test mode, but are also in flight operation for several hours at a time. The company has also expanded its annual production capacity to 5,000 units.
Fig. 9: Compressors from Fischer are also suitable for aviation, Source: Fischer Fuel Cell Compressor Fischer Fuel Cell Compressor, Halle 13, Stand E46
Also the Danish specialist for FC compressors Rotrex is presenting a new air compressor. The EK40CT-2429 has an additional turbine/expander unit. This new compressor should be suitable for stationary, maritime and aerial applications with large fuel cell stacks with up to 400‑kW output power.
Fig. 10: The new fuel cell compressor from Rotrex, Source: Rotrex, Rotrex, Halle 13, Stand C15
The Swiss company Celeroton Fuel Cell is developing and producing ultrahigh-speed turbo compressors and drive systems for fuel cell applications. All FC compressors from Celeroton are equipped with their own developed gas bearings that should enable high efficiency, oil-free operation and a long service life. With the CTi-1100, the company presents the second generation of the turbo compressor with integrated inverter for intralogistics, range extenders, stationary systems and drones. Likewise new is the CTi-2001 with integrated 80‑V inverter, conceived for intralogistics and off-road applications.
In addition, Celeroton Fuel Cell is expanding its product palette for applications with high power ranges. The new turbo compressor CTE-4000 in conjunction with the inverter CC-4000 should provide the air supply for fuel cells with a net output of 100 to 200 kW. The new system will be equipped with an optional turbine expander and several aerodynamic variants.
Fig. 11: Turbo compressor with 100 to 200 kW net output, Source: Celeroton Fuel Cell, Celeroton, Halle 13, Stand D49
PDC Machines from the USA produces membrane compression systems and hydrogen compressors. Via the new online portal MyPDCMachines.com, customers can manage a digital operation twin of their installed PDC system. The portal offers access to important information, like the device status, recommended maintenance schedules, operation reports, service history, handbooks and data sheets. In addition, it enables the ordering of replacement parts. New is also a “PDC Toolbox,” which should help customers in the service or maintenance of PDC compressors.
Fig. 12: Access by QR code to the online portal MyPDCMachines, Source: PDC Machines, PDC Machines, Halle 13, Stand E50/2
The gas analysis specialist Archigas from Rüsselsheim is presenting a novel measuring technology for humidity-independent H2 detection. For it, the company, in cooperation with the university Hochschule Rhein-Main, newly implemented the thermal conductivity measurement principle and combined it with semiconductor technology. With under 30 milliseconds, the new sensor from Archigas should exhibit an especially high reaction speed. If condensation comes in contact with the sensors for gas analysis, this usually leads to their immediate destruction. As a consequence, water can appear in the various places of the H2 process chain, security gaps can result and high costs can accrue. The special construction of the measuring module should therefore effectively combat a contact of condensate with the sensory units.
Fig. 13: As hydrogen is highly reactive, a detection over the whole process chain should be followed in real time Source: Archigas, Archigas, Halle 13, Stand C16
Hydrogen refueling pumps
This year, Maximator Hydrogen is introducing its newest generation of hydrogen refueling pumps. The Max Dispenser 1.5 has a multimedia display with touch function, microphone, loudspeaker and NFC reader for direct payment. This enables users to receive precise refueling instructions and see the filling status of their vehicle. At the same time, the display serves as an interface to 24/7 support, which is always available to answer users’ questions.
Thanks to the built-in tilt detection, the dispenser is set to a safe state in dangerous situations, like for example impact with a vehicle. The H2 inflow is stopped, the relief valve is opened and the dispenser is de-energized. The dispenser can fill cars and heavy-duty vehicles with 700 bar or 350 bar.
Fig. 14: Thanks to the built-in tilt detection, the dispenser is set to a safe state in hazardous situations Source: Maximator Hydrogen, Maximator Hydrogen, Halle 13, Stand C26
Also Linde is introducing a new hydrogen refueling pump at the Hydrogen + Fuel Cells Europe. The HyQ-Dispenser should offer high performance in H2 refueling. It is also said to be energy-efficient, very quiet and optimized for maintenance work.
Fig. 15: Card payment at the new Linde hydrogen refueling pump, Source: Linde, Linde, Halle 13, Stand D55/1
Components for hydrogen refueling pumps
Norgren under its brand Buschjost now offers H2 high-pressure solenoid valves with FM-approved coils for the North American market. The company can now serve customers who are building hydrogen refueling stations or hydrogen storage facilities for Korea, China, Europe or the USA. The valves are designed for a pressure of up to 1,050 bar.
New are also oxygen solenoid valves and regulators that the company has developed specifically in accordance with industrial gas standards for electrolysis applications. In addition, the company offers electric high-pressure proportional regulators for hydrogen refueling pumps.
Fig. 16: High-pressure solenoid valve with FM-approved coils for the North American market Source: Norgren, Norgren, Halle 13, Stand E13
Also Eugen Seitz from Switzerland is coming to Hannover with a new solenoid high-pressure valve for hydrogen applications. The valve has an integrated position indicator, which should ensure optimum system status information.
Fig. 17: The new H2 solenoid high-pressure valve with position indicator, Source: SeitzValve, Eugen Seitz, Halle 13, Stand D50
Bürkert is putting in focus with its trade fair appearance the new coil technology “Kick and Drop.” This technology is said to achieve energy savings of up to 80 percent in valves, 45 K less self-heating and 200 percent more switching pressure compared to conventional coils. The Kick-and-Drop coil is equipped with a double winding of an inrush and holding winding. In Kick-and-Drop electronics, the coil is excited by a high electric impulse. This generates the required inrush power that the valve needs to open. After around 500 milliseconds, the Kick-and-Drop electronics switch to an energy-saving holding mode. With this, the power consumption is drastically reduced.
Fig. 18: Kick-and-Drop coil from Bürkert, Source: Bürkert, Bürkert, Halle 13, Stand C30
Research
The German aerospace center for technical thermodynamics (DLR-Institut für Technische Thermodynamik) will be represented at the Hydrogen + Fuel Cells Europe with its departments for energy system integration and electrochemical energy technology. The institute develops electrochemical reactors based on proton ceramics. Proton ceramic fuel cells are operated at temperatures between 400 and 600 °C. The electrode configuration separates the vapor supply from the hydrogen production and thus prevents a dilution of the two streams. These novel cells are versatile: They can supply electrochemically compressed hydrogen, they can enable the protonation of molecules such as CO or CO2 into valuable raw materials, and they can additionally be used as conventional fuel cells for energy supply.
In the PtX-Wind partial project of H2Mare, the DLR is researching the offshore production of green hydrogen and power-to-X products. At the trade fair, the research institute is also introducing the transportable platform XPlore. This serves to investigate various electrolysis technologies in combination with different synthesis technologies.
Fig. 19: The transportable platform XPlore serves for offshore tests, Source: DLR (based on CAD from TUB-EBMS) DLR, Halle 13, Stand B36
The ZBT in Duisburg (Zentrum für BrennstoffzellenTechnik) is putting its focus on electrolysis and hydrogen derivatives at this year’s trade fair. The research institute is showing a model of an ammonia cracking reactor that was produced using 3D metal printing. A to-scale model of the associated cracker system for mobile applications will also be on display. The system was designed for a sailing yacht and now installed as part of a complete ammonia ship propulsion system in the sports yacht Ammonia Sherpa.
Fig. 20: Ammonia cracker system for use on a sailing yacht, Source: ZBT
The electrolysis division of the ZBT is presenting new precious metal-free membrane electrode units and introducing methods for the quality control of PEM electrolyzers. In the field of material qualification, the ZBT is demonstrating methods for the characterization and detection of damage phenomena on fuel cell components such as membrane electrode units or coatings on bipolar plates. ZBT, Halle 13, Stand E40
Fraunhofer ISE is presenting a laboratory AEM electrolysis cell in Hannover. This is a further development of the PEM electrolysis cell design and will be used for the precise characterization and qualification of various components such as membranes, porous transport layers and catalysts. This happens at pressures of up to around 10 bar, increased current densities of over 5 A/cm² and under precise temperature control by an integrated heater. The institute also offers customers measurement services for PEM and AEM electrolyzers and an analysis of the measurement results, to identify opportunities to improve customer products.
A new design of membrane electrode assemblies (MEAs) for electrolysis and mobile fuel cells, manufactured using screen printing or slot die processes with commercially available materials, is also part of the trade fair presentation.
Fig. 21: New design of the MEA for electrolysis and mobile fuel cells, Source: Fraunhofer ISE Fraunhofer ISE, Halle 13, Stand C41
At this year’s Hannover Messe, Fraunhofer IMM is introducing, at the Fraunhofer joint stand (Fraunhofer-Gemeinschafsstand), a compact system for ammonia splitting. This can be used for the decentralized supply of hydrogen, for example for hydrogen refueling stations. In maritime applications, such a system can supply fuel cells with hydrogen or supply ignitable “split gas” for ship engines.
The theme at the special exhibition area (Sonderausstellungsfläche) of the Hydrogen + Fuel Cells Europe is power-to-gas processes such as methanation in compact, microstructured reactors. In addition, Fraunhofer IMM is introducing reformer systems with which hydrogen carriers, like methanol, ethanol and synthetic hydrocarbons, can be used for hydrogen-based stationary and mobile energy supply. For these reformer systems, the institute is developing catalysts and catalytic coatings for microstructures.
Fig. 22: The ammonia and methanol-based systems for stationary and decentralized energy supply can be seen in Hall 2, Stand B24 Source: Fraunhofer IMM, Fraunhofer-Gemeinschafsstand, Halle 2, Stand B24, Fraunhofer IMM, Halle 13, Stand C47/1, Sonderausstellungsfläche
Machine building
The special machine manufacturer Graebener Maschinentechnik is presenting a press for the production of alkaline electrolyzer stacks. The pre-assembled stack consisting of bipolar plates is first inserted into the machine. There, it is compressed to a defined height until a certain pressure is reached within the stack. This pressure must then be maintained unchanged for several hours. During this time, the stack can be subjected to all the necessary technical tests with the help of other procedures.
The stack press for electrolyzers has a force of 800 metric tons and can accommodate stacks with a maximum height of around 3 m, a maximum diameter of 1.60 m and a weight of up to 12 tonnes. In order to be able to guarantee assembly work with maximum safety during operation, a hydraulic drive was deliberately dispensed with. Instead, the stack is compressed inside the press using six servomotor-driven spindle units. These are operated in synchronization mode and should therefore enable particularly homogeneous compression of the stack.
Fig. 23: The new stack press for electrolyzers, Source: Graebener Maschinentechnik, Graebener Maschinentechnik, Halle 13, Stand E42
The laser welding specialist AWL-Techniek Holding from the Netherlands develops laser welding equipment and complete production lines for bipolar plates. According to the manufacturer, the new laser micro-welding cell can achieve a focus of 0.052 mm and therefore weld at high speed. This enables the sophisticated welding of the wafer-thin bipolar plates.
Fig. 24: In the Experience Center, AWL has set up a test facility that also enables automated quality control of the bipolar plates Source: AWL, AWL-Techniek, Halle 13, Stand F49
The Belgian company Borit specializes in forming, cutting, welding and sealing technologies required for the production of metal bipolar plates for fuel cells and interconnects for electrolyzers. The trend with bipolar plates, according to Borit, is ever thinner materials on the order of 50 to 100 micrometers, in order to save weight. Borit develops the right technologies for such materials.
Fig. 25: Bipolar plates from Borit, Source: Borit, Borit, Halle 13, Stand C19
Maceas, a 100-percent subsidiary of Worthmann Maschinenbau, focuses on helium leak testing in vacuum and under atmosphere as well as ultrasound gas bubble detection in water bath. The company is active in the areas of hydrogen, electrolysis, fuel cells and battery components as well as heat storage technology. In Hannover, the company is showing a new fully automated helium vacuum tightness testing system for metallic and graphitic bipolar plates.
Fig. 26: New system from Maceas for leak testing of bipolar plates, Source: Maceas GmbH, Maceas, Halle 13, Stand E53/1
Catalysts and membranes
Pajarito Powder has built a new production facility for catalysts in fuel cell and electrolyzer stacks at its headquarters in Albuquerque, New Mexico, USA. The company uses platinum-group metals in its catalysts to achieve high performance and good stability and durability. With the new production facility, Pajarito Powder has tripled the production volume for FC catalyst material and doubled its in-house production of catalysts for the generation of green hydrogen.
Fig. 27: New production plant for significantly higher capacity, Source: Pajarito Powder, Pajarito Powder, Halle 13, Stand A40
The Chinese manufacturer Anhui Contango New Energy Technology is showing in Hannover a large-format catalyst-coated membrane (CCM) on various PEM variants. The CCM should have a high current density and a low iridium and platinum content. Contango supplied around 20 MW of CCMs to large Chinese water electrolyzers last year. According to the provider, the product is also interesting for European customers.
Anhui Contango New Energy Technology, Halle 13, Stand A21
Carbon Energy Technology from China produces composite membranes. The company’s new product consists of an organic polymer, ceramic powder and a carrier material. The membranes are available in thicknesses of 200 and 500 µm. They are used for the alkaline electrolysis of water, as they can efficiently separate hydrogen and oxygen and allow the electrolyte to pass through.
Carbon Energy, Halle 13, Stand A42
System integrators, operators and consultants
H2Apex with headquarters in Rostock/Laage is based on three pillars: The company is active as a system integrator for turnkey hydrogen projects and mobility solutions. In addition, the company produces green hydrogen. The third pillar is the development and production of compressed gas storage systems for the temporary storage of hydrogen.
Fig. 28: Container with H2 compressed gas storage tanks, Source: H2Apex, H2Apex, Halle 13, Stand E49
The hydrogen core grid should be in operation by 2032. For this, natural gas pipelines are to be converted to hydrogen and new hydrogen pipelines are also to appear. German natural gas grid operator Ontras is contributing its starting grid H2-Startnetz to the project. Among other things, it consists of the two IPCEI projects “Green Octopus Mitteldeutschland” and “Doing hydrogen.” With it, Ontras wants to lay the foundation for efficient and safe hydrogen transport in its grid area. The eastern German company is connecting via its infrastructure the whole German with the European network – the European Hydrogen Backbone. Via this, hydrogen produced in Scandinavia is to make its way to Germany.
Fig. 29: The Ontras H2-Startnetz consists of the projects “Green Octopus Mitteldeutschland” and “Doing hydrogen” Source: Ontras, Ontras, Halle 13, Stand D10
Siemens has expertise in the entire H2 value chain. The company makes this expertise available to OEM manufacturers, general contractors and plant operators as well as governments and municipalities in the implementation of hydrogen projects. This starts with financing and continues with the concept design and construction through to the operation of hydrogen generation plants and PtX projects. Siemens sees its strengths in the areas of digitalization, automation and electrification.
Siemens, Halle 13, Stand C36
The consulting firm PGUB Management Consultants is being represented in Hannover at the joint stand Hzwo-Gemeinschaftsstand Sachsen. PGUB advises the Swedish fuel cell manufacturer FCT Sweden. Under the name Protonik GmbH, starting April, an independent hydrogen consulting company is to be active. This is likewise to be found at the Gemeinschaftsstand Sachsen and also at the stand for the energy agency of the state of Hessen (hessische Landesenergieagentur, LEA).
A good 450 participants gathered at the specialist conference H2 Forum in Berlin February 19 and 20 to discuss innovative H2 technologies, strategies for the market ramp-up and the necessary regulatory framework conditions. A further 1,000 participants were connected online, even despite the considerable time difference in countries such as India and the USA.
The event was opened via a video by Kadri Simson, EU Commissioner for Energy. The two-day program was held under the motto “Empowering the future of hydrogen,” where this year’s focus was on the production of the green gas by electrolysis and its transport in Germany and Europe. At the H2 Forum were, among others, representatives from E.on, Enapter, EWE, Linde, FNB Gas and the H2Global Foundation. They discussed the role of hydrogen in the defossilization of the economic systems. Philipp Steinberg of the German economy ministry outlined the various phases of the development of the hydrogen core grid in Germany.
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Feelings of optimism and assurance were tangible throughout the high-ceilinged rooms of the Estrel Congress Center (ECC) as players from politics, industry and the energy sector talked about ambitious H2 projects at home and abroad. Inspiring as well was the approval by the EU Commission a few days before of a series of IPCEI projects, thus ending for some participating companies years of waiting. Additionally, the carbon contracts for difference and the auctions of the European Hydrogen Bank are giving hope to business representatives.
Spain: Megawatt-electrolysis in practice
For example, Özlem Tosun, project manager for green hydrogen at Iberdrola Deutschland, reported on the experience with a 20‑MW electrolysis plant, making it currently the largest in Europe. “I hope it doesn’t stay that way,” she added, in view of the necessary market ramp-up for green hydrogen. The Spanish energy corporation, known in the country primarily as an operator of wind farms in the Baltic Sea, started operation of the plant in Puertollano, May 2022 in the presence of the King of Spain. The city with nearly 50,000 inhabitants is located about 250 kilometers south of Madrid. The electricity for the hydrogen production comes from a 100‑MW photovoltaic park a few kilometers away and flows via an underground cable into the production hall, in which 16 electrolyzers of 1.25 MW each perform their work. These produce annually up to 3,000 tonnes of green hydrogen, which is temporarily stored in tower-high pressure tanks at 60 bar. The electrolysis plant is located next to the fertilizer factory of Fertiberia and currently covers ten percent of their hydrogen requirement, which according to Iberdrola saves 48,000 metric tons of CO2.
“But this is just the beginning,” stressed Tosun. “In the coming years, Iberdrola wants to increase the production more than tenfold – to 40,000 tonnes by 2027.” The demand is there, since otherwise Fertiberia is using for its ammonia synthesis gray hydrogen obtained from natural gas. That no comparable plant for the production of green hydrogen on an industrial scale is yet in operation is also due to the fact that the whole thing is not as simple as it sounds in the big plans and letters of intent. “It didn’t go smoothly from the start,” admitted Özlem Tosun. “On the contrary – we had a lot of problems. But we also learned a lot and were able to improve a lot as a result. Not only technically, but also economically.” One of the most important points was to optimize the efficiency of electricity use. Contributing to this was that the performance and efficiency of the electrolyzers were able to be increased further and further.
Overall, the practical experience in Puertollano was important “to be able to scale the system.” As far as the large-scale production of climate-neutral energy sources is concerned, the multinational energy company not only sees itself as a pioneer, but is also optimistic about the future. Because Spain first wants to become independent of fossil fuel imports and then be able to export renewable energies. So it’s no wonder that Germany is for Iberdrola “a key market,” as Tosun says, “especially for green hydrogen.”
Lack of regulation as a stumbling block
How the development of a German and European hydrogen industry can be accelerated was one of many other topics discussed at the conference. It is important to break down barriers – for example lack of regulation and infrastructure – it was said in a panel discussion. Such hurdles, the speakers agreed, were in addition to the high costs for H2 production, like before, the crucial reasons why not a small number of companies, despite the positive feasibility studies, are still waiting with the final investment decision. The following figures show just how wide the gap is between aspiration and reality when it comes to the gas of the future: In recent years, the German government has raised the target for domestic production of green hydrogen from the original three gigawatts to ten gigawatts, yet so far not more than 62 MW of generation capacity has been installed. That there is a long way to go, but which can go faster, further practical examples have shown.
“Never waste a green electron again!”
“Did you know that with the wind power that was curtailed in the first half of 2022 alone 1.5 million households in Europe could have been supplied with electricity for a year?“ (The figure refers to average households with a consumption of 3,500 kWh per year.) That was one of several questions with which Alexander Voigt, managing director of HH2E, began his speech. “What could we do with all the green electrons that are not being generated only because the power grid cannot absorb them?” His answer, of course: Hydrogen! But also high-performance battery storage, to be able to offer energy for stabilization of the power grid. That’s how he explained the business model of the planned HH2E factory in Lubmin, Germany. It will use surplus electricity to “reliably and cost-effectively produce green hydrogen.” In addition will come CO2-free heating and, if required, the conversion of the “green molecules” back into electricity.
Alexander Voigt, CEO von HH2E, nutzt künftig Überschussstrom in Lubmin (Foto: Monika Rößiger), Source: Monika Rößiger
With this, the plant could contribute to the decarbonization of industry in Germany and, at the same time, support the energy supply. The final investment decision will be made shortly, according to Voigt, and then the way would be clear for the start of construction. In the year 2026, according to the plan, energy generation is to start: around 100 megawatts of total capacity in the first expansion stage, divided between a 56‑MW electrolyzer and a 40‑MW battery storage system. The electricity for electrolysis is coming from offshore wind farms in the Baltic Sea. Initially, the operators expect to produce around 7,200 tonnes of green hydrogen per year. The production capacity of the plant is scalable up to one gigawatt. Lubmin, once a transshipment point for Russian natural gas, will then become a center for green hydrogen. This can be fed into the existing natural gas grid that extends from the northeast of Germany to the southwest near Stuttgart.
In total, more than 40 companies from the entire H2 value chain presented their solutions and products in the high glass hall next to the conference hall in the Estrel Congress Center. The organizational framework of the H2 Forum was right: There was time to connect during the coffee breaks, lunch and supper. Lively discussions took place at all the tables and stands. That more politicians were present this time than at previous events was, according to Laura Pawlik, Sales Manager of the organizer IPM, particularly emphasized in the feedback from the participants. And also that the representatives from politics and administration were definitely open to further funding.
The date for the next conference has already been set: March 4 and 5, 2025, again in the ECC in Berlin. Focal points will be in addition to politics also the regulatory progress in Germany and Europe.
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