Plug Power Inc. (PLUG)

JPMorgan held an investor call with plug power yesterday. Here's the report published today. The analyst keeps an overweight rating (no update on the price target, last update was $48 on Aug 6).

Investor Call Takeaways: Multiple Pillars of Growth
We held investor meetings with Plug Power management and came away with a view that the company remains well-positioned to be a leader in the hydrogen economy with a dedicated leadership team and clear focus on execution across its business domains. We are excited about Plug’s green hydrogen initiatives, which will likely be a key differentiator for the team by helping to drive down the cost of electrolyzers and unlock new opportunities in fuel cells. We think demand for Plug Power's products is strong and the company remains on-track to meet its 2021/2022 billings targets. Moreover, we think Plug’s pipeline continues to expand across a number of new vectors in mobility and stationary power globally. We remain OW on PLUG shares.

On track to meet 2021/2022 billings targets. Demand remains strong for Plug’s core materials handling products in the near-term, and newer opportunities in electrolyzers and stationary power are taking shape, which gives us confidence in the team at least achieving its 2021 and 2022 billings targets of $500M and $750M, respectively. In fact, we see the possibility for billings upside when the company hosts its Plug Power Symposium next month based on strong demand. However, with COVID-induced global supply constraints, the company may maintain its current outlook.

Clear focus on execution with dedicated management across business segments. Plug has general managers focused on four core business domains of: electrolyzers, materials handling, mobility & stationary power, and energy solutions (hydrogen infrastructure). Plug Power’s dedicated leadership is driving key partnerships across the hydrogen ecosystem.

Plug’s green hydrogen could be at cost parity with grey exiting 2022. Plug anticipates achieving cost parity for its green hydrogen with grey through economies of scale and as electrolyzer and renewable energy costs decline over time. Plug plans to scale up liquid green hydrogen production to 1,000 metric tons per day by 2028 globally through the expansion of its three US regional hydrogen hubs and international expansion. Plug anticipates becoming the top green liquid hydrogen producer in the US by the end of 2023 / early 2024 timeframe. In addition, Plug has secured long-term Power Purchase Agreements with US power companies to source its renewable electricity at a low cost ($0.03-0.04/kWh). Renewable electricity makes up 80% of green hydrogen production’s variable costs, so these agreements in addition to the scale up of electrolyzers and will position the company well for low cost hydrogen. Moreover, should US Congress approve a production tax credit (PTC) in the future, the economics could improve even more.

Cost competitive today in electrolyzers and fuel cells with more cost reductions to come. Plug Power believes its PEM electrolyzers are cost competitive today and sees its electrolyzer costs coming down by ~70% over the next 3-4 years on
increased scale. For Plug’s fuel cell products, costs have declined by 25% for every doubling of the installed fleet – the company expects as similar cost curve for electrolyzers.

New vectors of growth in trucking and stationary power. In part due to increasing confidence in bringing competitive, low-cost green hydrogen to market by late next year, the team is seeing new growth opportunities in areas such as stationary power and mobility applications. In particular, the company's announced JVs with Acciona, Renault, and SK Group, which are on track to close in the coming weeks, are poised to unlock new opportunities in areas such as stationary power – and for Renault in particular, in light-duty commercial vehicles, where cost-of-ownership parity with diesel could be achieved in a few years.

Plug Power Symposium event in October could be the next catalyst. Plug provided what can be considered a preview for its upcoming Symposium that will be held on October 14th (virtually). We anticipate more details around the company’s comprehensive hydrogen strategy, market opportunities looking ahead (including core materials handling, new mobility applications and stationary power) and updated financial targets.

Article from Hydrogen Fuel News:

"South Korea doubles down on hydrogen economy with new business designations "

"South Korea’s energy ministry took another important step toward a hydrogen economy this week by designating eight more H2-focused businesses as eligible for state financial support."

So far, there have been 19 companies benefiting from the hydrogen economy subsidies.
There have been 19 companies in the country that have been eligible for the state subsidies, according to a release from the Ministry of Trade, Industry and Energy. The companies that have qualified for the subsidies include hydrogen fuel cell parts suppliers as well as those involved in refueling facilities. The country is also supporting H2-focused companies in their efforts to seek out new clients and to obtain the technological support they require.

This move forward has arrived at a time in which South Korea has been seeking to support 100 H2-fucused companies by 2025. From there, the goal is to continue their support of businesses focused on hydrogen until they have reached 1,000 by 2040.

H2 is being viewed as a cleaner alternative to the use of fossil fuels in passenger and transport vehicles. This is particularly true when fueling those vehicles with green hydrogen, which is produced using renewable energy such as wind and solar. That said, it can also be produced as an industrial biproduct, including at petrochemical plants, of which there is no shortage in many parts of South Korea.

The country has placed a priority on fostering its hydrogen economy, using H2 in a spectrum of different areas from power generation to auto fuel. Within the South Korean plan, its intention is to produce 6.2 million H2 fuel cell car units by 2040 and to build 1,200 refueling stations throughout the country to service those vehicles. "

Just FYI.

Thanks !

:=)

JMI

MYCON

@MYCONGCI

·

16 Sep

Earlier today, a 17,500-gallon Plug Power GenFuel tank was installed at Tarrant County's first hydrogen fuel station! This large tank will store hydrogen fuel produced by the surrounding equipment and will serve as the main source of energy for an over 1,000,000 SF industrial fa

Czech scientists won an award for new technology. It can make hydrogen cars cheaper

A team of scientists from Charles University received the prestigious f-cell award for hydrogen technology, which aims to ensure lower costs for the production of fuel cells. Tomáš Hrbek, Dr. Peter Kúš, Dr. Yuri Yakovlev and Professor Vladimír Matolín were awarded the prize in Stuttgart on Tuesday for innovative proton-conductive membrane treatment technology used in conductive fuel cells and water electrolysers.

"It's a great joy and a huge step forward. The expert commission that decides on the award includes a number of experts from both academia and industry. The award thus underlines the potential of membrane modification technology. In addition, the award is very valuable for me personally, as it can open the way for me to further research opportunities, "said Tomáš Hrbek from the Faculty of Mathematics and Physics, Charles University, who entered the research in the competition. https://www.seznamzpravy.cz/clanek/cesi-ziskali-cenu-za-novou-technologii-mohla-by-zlevnit-auta-na-vodik
https://www.seznamzpravy.cz/clanek/cesi-ziskali-cenu-za-novou-technologii-mohla-by-zlevnit-auta-na-vodik-174883#dop_ab_variant=0&dop_source_zone_name=zpravy.web.nexttoart&dop_req_id=esjvsuO82nr-202109172126&dop_id=174883