Goldman Sachs once referred to hydrogen as a “once in a lifetime opportunity.” In fact, they said the market could be worth up to $11.7 trillion in the next 30 years. Bank of America analysts said the market could be worth $11 trillion by 2050. As you can imagine, such forecasts are positive for companies like Jericho Energy Ventures (TSXV:JEV)(OTC:JROOF), Plug Power (NASDAQ:PLUG), Ballard Power (NASDAQ:BLDP), Bloom Energy (NYSE:BE), and Fuel Cell Energy (NASDAQ:FCEL). Strengthening the market, Joe Biden is expected to invest heavily in green energy tools, such as hydrogen.
Top Companies That Could Benefit from Hydrogen Boom
Jericho Energy Ventures for example just announced its wholly owned subsidiary, Hydrogen Technologies, has signed an exclusive IP licensing agreement with UK-based Deuterium Heating Ltd. With heat being the largest contributor to UK carbon emissions (accounting for over one-third of the country’s output) there is a significant and time sensitive issue at hand which, collectively, HTI, Deuterium and its sister company Protium hope to solve.
The agreement will further commercialize HTI’s unique hydrogen-based cleanH2steam DCC™ boiler. The partnership will allow HTI to expand their geographical footprint across Europe, while offering a zero emissions heating and steam technology directed at decarbonizing the $30bn global Commercial & Industrial heating market. The agreement’s initial geographic focus will be in the UK and Ireland.
To achieve the UK’s ambitious 2050 Net Zero goals, the government has set an aggressive agenda to decarbonize their heat, stating in their 2020 Energy White Paper: “Our success will rest on the decisive shift away from fossil fuels to using clean energy for heat and industrial processes...” while specifically developing hydrogen solutions including:
- Support for generating over 5GW of low carbon hydrogen production capacity by 2030.
- Developing the first town heated entirely by hydrogen.
- Recognizing in its 2018 Industrial Fuel Switching report, that hydrogen has the greatest technical potential to achieve decarbonization of the UK’s industrial heating demand, making up nearly 50% of the 180TWh of industrial heat demand.
- Banning, by 2025, the installation of new fossil fuel-based boilers that provide heat and hot water.
Deuterium, launched last year to facilitate the IP licensing agreement, is the sister company of Protium Green Solutions Ltd., a leading UK green hydrogen energy services company providing project origination, design, and funding to support the development of hydrogen and fuel cell technologies.
Ryan Breen, Head of Corporate Strategy of JEV stated: “Given the UK’s Net Zero 2050 goals and the enthusiasm to decarbonize their heating demand, we are thrilled by our strategic partnership with Protium and Deuterium to expand the availability of our world-leading technology.
“Through the combination of HTI’s expertise in hydrogen boiler technology and Protium’s knowledge of the UK market and their project acumen demonstrated to date, we are able to offer a unique method for helping British businesses to achieve zero emission heat and steam solutions. Over the long term, this agreement should provide good visibility and access into high-growth European markets where we can drive sales of our cleanH2steam DCC boiler.”
Financial terms of the IP licensing agreement have not been disclosed.
Plug Power was just upgraded by JP Morgan from neutral to overweight with a $65 price target. “Investors generally seem attendant to the risks associated with this company (particularly a potential rotation from momentum into value), but take the view that PLUG is a leading contender for meaningful share of [the] future Hydrogen economy, in 5 - 10 years,” the firm said, as quoted by Benzinga.
Ballard Power and Canadian Pacific just announced today that CP will employ Ballard fuel cell modules for CP's pioneering Hydrogen Locomotive Program. The modules will provide a total of 1.2 megawatts of electricity to power the locomotive. “With this purchase from Ballard, a leader in the hydrogen fuel cell industry, CP further demonstrates its commitment to developing the next generation of locomotive – one that produces zero emissions," said CP President and CEO Keith Creel. "How we power our trains matters to our customers, employees, shareholders and to the communities we operate in. This technology holds the possibility of eliminating emissions from freight train operations, which already represent the most efficient method of moving goods over land."
Bloom Energy was recently upgraded by Credit Suisse from neutral to outperform on the stock’s recent pullback. “The analyst cites valuation for the upgrade following the recent pullback in the shares,” as noted by The Fly. “He sees ‘tailwinds’ around the Gen 7.5 launch, the 10%-15% per year cost reduction for natural gas-based fuel cell, and pilots for hydrogen fuel cells, marine fuel cells and electrolyzers in 2021 and 2022.”
Investors will hear more about Fuel Cell Energy and Q1 earnings on Tuesday, March 16, 2021. FuelCell Energy management will subsequently host a conference call with investors beginning at 10am EST Tuesday, March 16, 2021 to discuss the first quarter results for fiscal 2021.
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