Hydrogen Fuel Cell Powered Vehicles To Be Deployed Across Wales

Source: Streetwise Reports 01/26/2024

First Hydrogen is ready to release its light commercial vehicles across Wales and Southwest England. Read on to see what analysts believe this company’s stock could be a major opportunity for investors.

First Hydrogen Corp. (FHYD:TSX; FHYDF:OTC; FIT:FSE) announced in a press release on January 23, 2024, that it was set to begin trials of the company’s hydrogen fuel-cell-powered light commercial vehicle (FCEV) with Wales & West Utilities. These trials will be based out of Wales & West Utilities’ Swansea depot and will take place across southwest England and Wales.

Wales & West Utilities is a gas utility company that services over 7.5 million consumers in the region and supports initiatives to develop green energy. The company is particularly interested in hydrogen power and has put forward a proposal for a hydrogen pipeline.

A transport manager at Wales & West Utilities, Steven Offley, commented, “We are confident that hydrogen will play a fundamental role in delivering low-cost green energy as we move away from fossil fuels. Hydrogen can be produced from renewables in the U.K., as Protium is already demonstrating, and supplied through many of the gas pipelines that we already use.”

First Hydrogen will demonstrate that its FCEVs have a greater range, towing power, and refueling capability than conventional electric vehicles. The vehicles will go out on customer callouts and repair and maintenance missions, while the vehicles will be supported by Protium Green Solutions, a green hydrogen producer, and Hyppo Hydrogen Solutions, another hydrogen infrastructure company. These vehicle trials, with a fleet of 1,300 hydrogen-powered light commercial vehicles, will be the first showcase of such vehicles in Wales.

Steve Gill, who is the head of the automotive department at First Hydrogen, commented, “We’re delighted to be working with Wales & West Utilities and not only trial the vehicles in Wales but also form partnerships that will establish a local hydrogen ecosystem.”

He continued, “The Wales and West Utilities team are hugely supportive of our vehicle development and share our belief that hydrogen could help deliver carbon-free transport — particularly for fleets that require longer uptime, longer range, and heavier payloads than BEVs can offer as well as towing capacity.”

Increasing Demand for Innovative Power

Global Market Insights estimates that the market size for hydrogen vehicles will grow by 28% annually from approximately USD$2.8 billion in 2022 to USD$33.2 billion in 2032. The report identified government initiatives to transition away from fossil fuels, as well as the general public’s desire for green transportation, as major drivers of the market.

On October 5, 2023, PR Newswire reported that the market for hydrogen fuel cells is expected to grow to US$17.05 billion by 2027. PR Newswire connected the growth of hydrogen-powered vehicles to the growing demand for Electric Vehicles (EVs), which saw a 50% growth in purchasing between 2019 and 2020. A downside of electric vehicles is that they require specific charging infrastructure to run, while hydrogen fuel cells rely on chemical energy, increasing the vehicle’s range.

Expected to Grow

Technical Analyst Clive Maund rated First Hydrogen as a “Buy” on July 24, 2023. Maund commented, “There has been some determined heavy buying in recent days, and with the 50-day moving average turning higher, it looks like it is starting to break out of the latest bull Flag shown into another upleg.” Maund also commented that a short drop has made the company’s stock more accessible to new investors on the American market.

Analyst Ron Struthers also reviewed the company on July 12, 2024, which he identified as a possible competitor to Tesla. He also identified the support for hydrogen technology from governments across North America and Europe as a major catalyst for the company.

Struthers commented, “First Hydrogen is at the very beginning of its growth cycle. It will have revenues from selling FCEVs that have now reached acceptance, and I expect it will soon see major purchase orders.” [OWNERSHIP_CHART-10890]

The company’s investor presentation reports a number of catalysts, including the rollout of its first generation of vehicles expected in 2026 and its next generation of large vehicles expected in 2028.

Ownership and Share Structure

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 5.37% of the company. According to Refinitiv, Head of Strategy, Nicholas Wrigley owns 4.23% of the company with 3-million shares. Chairman and CEO Balraj S. Mann owns 1.00% of the company with 0.71 million shares, and Director Alicia Milne owns 0.14% of the company with 0.10 million shares.

Refinitiv reports no institutional investors.

According to Refinitiv, there are 70.92 million shares outstanding with 67.11 million free float traded shares, while the company has a market cap of CA$120.56 million and trades in the 52-week period between CA$1.40 and CA$4.60.

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Important Disclosures:

1. First Hydrogen Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Hydrogen Corp.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: FHYD:TSX; FHYDF:OTC; FIT:FSE, )