H2 is one of the key elements in achieving global climate goals. Green hydrogen, in which water is split with the help of renewable energies, is considered a promising energy storage medium that has many applications in industry and mobility. It is not without reason that more than 30 countries around the globe have now adopted a hydrogen strategy.
Founded in 1997, Plug Power recognized the potential of the 1st period chemical element early on. The US company develops and manufactures fuel cells for the megatrend of e-mobility, among other things. Already, the company's solutions are being used by major corporations such as Amazon, Walmart and Carrefour to power their industrial electric vehicles. Plug Power now has more than 50,000 fuel cell systems in use in the e-mobility sector, which it claims is more than any other company in the world. Plug Power also builds hydrogen storage systems as well as fuel dispensing systems. The company still has a lot of plans for the future: Plug Power is using its expertise to expand into other key markets, such as zero-emission road vehicles, robotics and data centers.
The expansion of the business should also be reflected in Plug Power's figures. For years now, the revenue curve has been pointing upwards - with the exception of the Corona year 2020. For the current fiscal year, the analyst consensus is that the company will generate revenues of just under $500 million. In the third quarter, sales came in at EUR 143.9m, up 14.6% and right in line with analysts' expectations. The bulk of the business was accounted for by the sale of fuel cell systems and the corresponding infrastructure.
"Make do, don't spill" has always been the motto of Andy Marsh, the company's CEO since April 2008. And that still applies today. The new medium-term plan, for example, envisages revenues of USD 3 bn by 2025, which corresponds to average annual growth of more than 50%. Plug Power also aims to ramp up liquid green hydrogen generation capacity to 500 tonnes per day by the end of 2025 and reach an installed electrolyser capacity of three gigawatts (GW).
The group's expansion strategy also includes geographical spread. Plug Power, for example, recently formed a joint venture with Spanish renewable energy specialist ACCIONA Energía to develop, operate and maintain green hydrogen projects in Spain and Portugal. The new company, called AccionaPlug, aims to launch its first H2 production plants in 2023 and produce more than 100 tonnes of green hydrogen per day by 2030. Plug Power is also opening a headquarters in Germany to make a significant contribution to the European hydrogen strategy. "Our establishment of a headquarters in the Port of Duisburg supports our ambitious goals to lead the development of a global green hydrogen ecosystem," CEO Marsh explains the move.
Hydrogen shares are characterised by high opportunities but equally high risks. In this still young sector, company successes and failures often go hand in hand. In addition, an H2 strategy swallows up a lot of money. Analysts do not expect Plug Power to make profits before 2024. It is therefore not surprising that the shares are showing relatively high fluctuations on the stock market. From the beginning of 2020 to the start of the current year, Plug Power shares spurted from around USD 3 to over USD 70, only to dip back below the USD 20 mark in the months that followed. Since then, the stock has fluctuated up and down between USD 20 and 40. The historical volatility since New Year's Eve is over 90%.
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