July 10, 2023 • Paul Rodden • Season: 2023 • Episode: 229
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In episode 229, A massive NOI from the US Department of Energy shows that they are listening to the needs of the hydrogen industry and ThyssenKrupp lists Nucera and one of the biggest IPOs in Europe’s history, all of this on today’s hydrogen podcast.
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A massive NOI from the US Department of Energy shows that they are listening to the needs of the hydrogen industry and ThyssenKrupp lists Nucera and one of the biggest IPOs in Europe’s history, all of this on today’s hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden. And welcome to the hydrogen podcast.
In a release from the US Department of Energy, the Biden Harris administration to jumpstart clean hydrogen economy with new initiative to provide market certainty and unlock private investment as part of Bidennomics and President Biden’s investing in America agenda. The US Department of Energy released on July 7, a Notice of Intent, which includes a request for information to invest up to $1 billion in a demand side initiative to support the regional clean hydrogen hubs. Funded by President Biden’s bipartisan infrastructure law. The h2 hubs program will help form the foundation of a National Clean hydrogen network vital to reducing emissions from some of the most energy intensive sectors of our economy, including industrial and chemical processes and heavy duty transportation. The announcement will help ensure both producers and end users in the h2 hubs have the market certainty they need during the early years of production to unlock private investment and realize the full potential of clean hydrogen. Achieving commercial scale clean hydrogen deployment is critical to creating good paying jobs and new economic opportunities and communities across the nation while also enabling our long term, decarbonisation objectives.
And a quote from US Secretary of Energy Jennifer Granholm ensuring America is the global leader in the next generation of clean energy technologies requires all of us government and industry coming together to confront shared challenges, particularly the lack of market certainty for clean hydrogen that too often delays progress. That’s why the DoE is setting up a new initiative to help our private sector partners address bottlenecks and other project impediments helping industry unlock the full potential of this incredibly versatile energy resource and supplying long term success of the h2 hubs. Now, according to the DoE’s pathways to commercial lift off the clean hydrogen report, America’s growing hydrogen economy has the potential to add 100,000 net new direct and indirect jobs by 2030. By enabling the development of diverse domestic clean energy pathways across multiple sectors of the economy, clean hydrogen will strengthen American energy independence and accelerate the American manufacturing boom that’s already created over 800,000 jobs since President Biden took office. Developing a hydrogen demand side initiative is critical to ensuring the early commercial viability of an h2 hub given that demand formation for new energy sources typically lags creation of a reliable supply. This new initiative will support the growth and sustainability of the h2 hubs program by providing the revenue certainty that hydrogen producers require to attract private sector investment.
It will also help meet the needs of end users who often prefer the flexibility to purchase hydrogen on shorter term contracts and require confidence in the long term availability of clean hydrogen before making critical long term investments. The noi, which includes a request for information on the program’s design will help the DoE refine and validate its approach to provide a demand side support for the hubs to enter the clean hydrogen market, and will identify the best approach to engaging and potentially involving private sector institutions in the organization capitalization and execution of the implementing entities mandate. To help inform the design of a demand side support mechanism for the h2 hubs program the NOI seeks public input on potential benefits and risks, operating models, governance structures, and equipped implementing partners. The NOI is also informed by DoE’s dialogue with the energy industry, clean energy investment firms, nonprofit entities, non governmental organizations and public response from the demand side Request for Information issued in spring of 2022.
From the DoE’s pathways to commercial liftoff report. on clean hydrogen, based on demonstrated performance and experience gained with the h2 hubs demand side support mechanism, DOE may consider similar mechanisms for other technologies and clean energy products in the future. Now later this year, the Biden Harris administration will announce the selection of six to 10 h2 hubs for a combined total funding of up to $7 billion in federal funding one of the most historic clean energy investments in history and a cornerstone of President Biden’s vision to achieve a carbon free grid by 2035 and zero emissions by 2050. The proposed mechanism outlined in NOI will help connect the h2 hubs to prospective purchasers, providing durable demand and sufficient customers for the hubs while also supporting President Biden’s whole of government approach to building a strong clean hydrogen economy.
Okay, so after reading this report, I was joking with my business partner that they must be listening to our show, as we’ve gone over this topic several times in recent weeks. Well, regardless of where the DOE is getting its information, it appears that Department of Energy has been listening to the overabundance of industry commenters stating that off takers for hydrogen is now the primary focus for both developers for hydrogen and potential investors that are still hesitant to jump into the market without some sort of certainty for residual cash flows.
Now this announcement is the perfect step towards solidifying a sustainable hydrogen marketplace in the US and allow the hydrogen economy to continue to grow and develop. Next in an article in tech explore.com Sam Reeves writes ThyssenKrupp hydrogen unit surges in stock market debut Thyssen Krupp says green hydrogen unit Nucera made a strong debut on the Frankfurt Stock Exchange Friday, July 7, amid growing interest in the technology as an alternative to hydrocarbons, shares in Nucera ended their first day trading 18.85% higher at 24 euros 34 or $26.70, giving the company a valuation of around 3 billion euros. Nucera’s flotation one of the biggest in Europe so far this year, comes as countries around the world are looking at ways to reduce carbon emissions to help meet climate targets. Nucera produces electrolyzers which can be used to manufacture green hydrogen made using electricity obtained through renewable energy sources such as solar or wind. Nucera CEO Werner Ponikwar speaking at the stock market before the opening, Bell hailed the IPO as a great achievement. He said the company aim to quote support our customers on their way to climate neutrality, thereby shaping the new era of sustainable energy.
He also said we are well on our way to becoming one of the leading green hydrogen companies. Friday’s IPO was the second largest in Europe this year behind the Italian gambling firm lottomatica is listing in Milan. Nucera has described the flotation as the largest ever hydrogen listing and Thyssen Krupp said it raised about 600 million euros from the share offering Thyssen Krupp is one of Germany’s leading industrial groups making everything from steel to submarines. The proceeds from the Frankfurt listing will be used to support the strong growth of Thyssen Krupp Nucera alkaline water electrolysis business this according to the group, almost a quarter of the shares in Nucera were put up for sale while Thyssen Krupp will keep a majority stake in the unit. Nucera is a joint venture between Thyssen Krupp and Italian company Industrie De Nora. De Nora. currently holds 34% of the Nucera subsidiary. CMC Markets analyst Konstantin Oldenburger said growth at Nucera was expected to take off in the coming years. The company was a quote beacon of hope for both Thyssen Krupp itself and the entire hydrogen sector in Germany this according to Oldenburger. But He also warned Nucera was quote, not yet profitable, and shareholders will probably have to wait a long time before sustainable profits materialize. Thyssen Krupp has in recent years been battling financial problems and a crisis over its future direction.
Its chief executive Martina Merz announced in April she was stepping down after leading a major restructuring of the group. She was replaced by Miguel Angel Lopez Borrego, previously CEO of German engineering group Norma. Well, a massive float coming from Thyssen Krupp to give Nucera a strong start with a 3 billion euro evaluation and could also showcase just how hungry Germans are for investing in not just green hydrogen but Green hydrogen that’s rooted in Germany. To me, the hydrogen IPO market is still more of a barren wasteland than a bustling metropolis. But this announcement definitely showcases that the IPO option for certain hydrogen tech could be a great way to raise a ton of capital and help scale production, which for the hydrogen industry will be desperately needed as more off takers start consuming hydrogen and its derivatives.
Now, while it’s too early, to see some other types of hydrogen tech developers jump into the public markets, deals like this and the recent market bumps at companies like Nikola bloom and plug are paving the way for other hydrogen IPO offerings in the future.
Alright, that’s it for me, everyone. If you have a second, I would really appreciate it. If you could leave a good review on whatever platform it is that you listen to Apple podcast, Spotify, Google, YouTube, whatever it is, that will be a tremendous help to the show. And as always, if you ever have any feedback, you’re welcome to email me directly at info at the hydrogen podcast.com. So until next time, keep your eyes up and honor one another.
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