Plug Power (WKN: A1JA81) – and ITM Power (NASDAQ:GOOGL) stocks have performed relatively parallel to each other over the past five years. A huge surge of up to 3,187% saw a significant correction that is still ongoing. The reason is the current turnaround in interest rates, which is making loans more expensive, especially for young, loss-making hydrogen companies. Added to this is the risk of a recession, which leads to large discounts for technology stocks.
Nevertheless, both companies continue to develop and benefit from new orders. Politicians have also declared that they will continue to promote and expand the hydrogen economy despite a possible crisis.
Plug power with large hydrogen electrolyser project
The American company Plug Power has been awarded the contract for a 100 MW electrolyser project in the port of Antwerp. After completion, the plant will produce up to 35 tons of green hydrogen per day. Around 12,500 tons are collected each year, which contribute to the decarbonisation of the port. A neighboring wind farm supplies the energy required for this.
Plug Power has signed a 30-year concession agreement and will lease approximately 28 hectares of land for the facility. The company plans to start construction by the end of 2023 and the first hydrogen production by the end of 2024.
Belgium would like to play a pioneering role in the hydrogen economy in a global comparison. Many countries now want this, which fuels competition and thus contributes significantly to the development of the sector.
“As Europe grapples with the challenges of climate change and energy security, our agreement with the Port of Antwerp-Bruges will provide much-needed green hydrogen for local markets. The energy crisis in Europe resulting from geopolitical risks has accelerated the demand for green hydrogen development projects,” said Plug Powers CEO Andy Marsh.
ITM Power with record order backlog
ITM Power has provided an update on its business development since 01/27/2022. Accordingly, the British hydrogen company reached a record order backlog of 755 MW on June 1st, 2022. This represents an increase of 53% compared to January 2022 and an improvement of 160% compared to the same period last year. This means that a significant increase in sales can be expected later on.
As key new developments, ITM Power cites a 240MW project as preferred supplier to Motive, a 50/50 joint venture with Vitol to build the UK’s hydrogen fueling infrastructure.
Added to this is the sale of a 24 MW electrolyser Linde (WKN: A2DSYC) -Engineering, den Children (WKN: A0BL7F) in Norway for environmentally friendly fertilizer production. Linde acquired a 16.3% stake in ITM Power at an early stage in order to later be able to use its capacities for itself. ITM Power also sold to RWE (WKN: 703712) developed a 4 MW system and received a grant of 9.3 million British pounds from the British government.
For the financial year ended in April 2022, ITM Power expects sales to increase by 27.9% to £5.5 million and adjusted EBITDA to be £36.5 million (previous year: £21.4 million). ) out.
The article hydrogen: 2 good news about the Plug Power share and the ITM Power share! first appeared 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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