Home » Business » 3 significant H2 news from Plug Power shares, PowerCell Sweden shares and the US Department of Energy

3 significant H2 news from Plug Power shares, PowerCell Sweden shares and the US Department of Energy

Despite the current virus crisis, the hydrogen industry has been able to hold up well and continue to develop, which is mostly due to the worldwide funding by many countries. This also benefits the medium-sized American company Plug Power, which wants to significantly increase its earnings in the coming years.

Plug power with two acquisitions

Most recently, it completed the acquisitions of United Hydrogen and Giner ELX. Plug Power decided to expand its business vertically in September 2019. This includes the production of green hydrogen. United Hydrogen is one of America’s largest private hydrogen producers. The company has the capacity to produce 6.4 tons of hydrogen a day. However, these production options will soon increase to 10 tons and more.

In this way, Plug Power can improve its market position, acquire know-how in the field of hydrogen production, liquefaction and distribution logistics and at the same time increase its earnings targets. By 2024, it is now targeting sales of $ 1.2 billion and adjusted EBITDA of $ 250 million. Through further partnerships, Plug Power wants to become one of the largest producers of green hydrogen.

The company anticipates that its customers will need around 100 tons of hydrogen per day by 2024. By then, 50% of the demand should be met with green hydrogen. As a result of the expansion of capacity, Plug Power is now targeting steel, fertilizer and ammonia manufacturers as potential customers, because everyone wants and must reduce their CO2 emissions in the future.

The cost of green hydrogen is expected to halve by 2030, so it would be at the level of today’s traditional production. Giner ELX, on the other hand, produces green hydrogen using wind and solar energy through electrolysis. It also has options for storing renewable energies and generating hydrogen at petrol stations. Giner ELX also has a European sales network, which will help Plug Power expand further.

USA invest in fuel cell research

Little is currently noticed, but the United States is also investing heavily in expanding the hydrogen economy. For example, research is being carried out into inexpensive fuel cells, for which the US Department of Energy has now released another $ 100 million.

The developed fuel cells are to be used primarily in trucks and other heavy commercial vehicles. Within five years, these vehicles should no longer be inferior to today’s in terms of performance, costs and service life.

“Through these ambitious new initiatives, the Trump administration continues its commitment to all of the above energy solutions and offers a wide variety of clean energy options for both power generation and transportation,” said Mark Menezes, Secretary of Energy.

PowerCell Sweden with a new Bosch order

In addition, PowerCell Sweden received an order from its partner Bosch for its S3 fuel cells worth 2.47 million euros. It will be processed by the end of the year.

Both joined forces in April 2019 to mass-produce fuel cells for the automotive industry and other applications in the future. While PowerCell Sweden does the research and development, Bosch received the exclusive production and distribution rights and would like to start its own series production for fuel cells from 2022.

The post 3 significant H2 news from Plug Power shares, PowerCell Sweden shares and the US Department of Energy appeared first on The Motley Fool Germany.

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Christof Welzel does not own any of the shares mentioned. The Motley Fool does not own any of the stocks mentioned.

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