Paul Rodden • Season: 2024 • Episode: 293
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Welcome to The Hydrogen Podcast!
In episode 293, A massive collaboration between PHE and national hydrogen sets the stage for future joint developments between project developers and technical and engineering firms. And SNAM is making more news with Hy2 in Europe and another monster announcement from plug and their deliverables to Uline. I’ll go over this news and give my thoughts on today’s hydrogen podcast.
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Paul Rodden
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Transcript:
A massive collaboration between PHE and national hydrogen sets the stage for future joint developments between project developers and technical and engineering firms. And SNAM is making more news with Hy2 in Europe and another monster announcement from plug and their deliverables to Uline. I’ll go over this news and give my thoughts 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’s 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.
Okay, before I begin today, I just wanted to let everyone know that I will be attending the hydrogen policy leaders convention in Washington DC this weekend. If you’re able to attend, I highly recommend being there. This is a prime opportunity to discuss hydrogen regulations and the three pillars with those who can influence these policies and steer the US market growth. And if you are planning to be there, look me up and we can grab coffee and talk hydrogen development.
And now on to the news. In an article in sharecast.com Josh White writes powerhouse energy signs five year deal with national hydrogen. Josh writes powerhouse Energy Group announced a five year framework agreement with Australia based national hydrogen on Thursday of last week. The AIM traded firm said the agreement outline term for powerhouses technology and engineering expertise to be exclusively provided to national hydrogen on a project by project basis across Australia, Italy, Switzerland and Hong Kong. Engsolve now a wholly owned subsidiary of powerhouse energy group would undertake the front end engineering and design or feed for the facilities covered by the agreement. Funding for The endeavors would be fully provided by national hydrogen. Collaboration between powerhouse and national hydrogen would extend to working closely with the selected engineering procurement and construction or EPC contractor.
The collective effort aimed to leverage the expertise of all involved parties for the successful realization of the projects. Each project would be subjected for their project specific documentation between PHE and national hydrogen powerhouse said its participation in the project would not require any capital contribution, and it would instead operate on a license fee and royalties model and a quote from CEO Paul Emmitt, we are excited to leverage our expertise and advanced technologies to optimize these facilities setting new benchmarks for the hydrogen industry.
He also said this is the culmination of several years of work, discussion and negotiation between Richard Allen who is the chairman of national hydrogen and himself saying that he is very pleased that they have finally concluded the agreement and looks forward to a long and prosperous relationship with national hydrogen. He also says this is a major milestone for us delivers a significant endorsement for our technology and know how, and provides us with both a platform for growth and a potential long term income stream. Okay, so great news for PHE and national hydrogen as they joined forces to develop hydrogen projects in prime spots in Asia, Europe and Australia.
Now, as far as I can tell, no numbers have been given. And we don’t know yet if this is a pay for performance situation, or if they’ll share equity stake in the projects themselves. But what this does showcase is something that I believe we’ll begin to see more of technical and engineering firms partnering with hydrogen project developers, it is so much more cost effective to partner in these situations than to build out these verticals in house. And I can envision more of these partnerships to develop in the next 24 months. Next in a press release on February 26 Snam’s Hydrogen Valley project in Puglia enters the list of Hy2Infra IPCEIs approved by the European Commission.
The hydrogen infrastructure planned for the Hydrogen Valley project in Puglia has been included by the European Commission among the IPCEIs (Important Projects of Common European Interest) on hydrogen approved on 15 February as part of the Hy2Infra wave. This third IPCEI wave follows on from Hy2Tech, which focused on the development of hydrogen technologies for end users, and Hy2Use, focused on hydrogen applications in the industrial sector, and involves 32 companies in a total of 33 projects in Europe. The framework was jointly developed and presented by seven Member States: France, Germany, Italy, the Netherlands, Poland, Portugal and Slovakia. Under the programme, Member States will provide up to € 6.9 billion in state aid, which is expected to stimulate a further € 5.4 billion in private investment — to support innovative projects in strategic sectors for European industry.
The infrastructure planned by Snam fits into the broader framework of the development of the hydrogen supply chain involving other leading industrial operators in Puglia. Snam’s project, whose operational phase is expected in 2028, involves total investments of around € 100 million aimed at repurposing existing pipelines (85 km) and installing new ones, for a total length of around 110 km. Overall, the Hy2Infra IPCEI will support the European-wide deployment of 3.2 GW of electrolysers, the construction and conversion of around 2,700 km of pipelines for hydrogen transport and distribution, the development of hydrogen storage facilities for at least 370 GWh, and the construction of handling terminals and related port infrastructure for liquid organic hydrogen carriers to manage 6,000 tonnes of hydrogen per year. Okay, so more news on SNAM and the Hy2 developments going on in Italy.
We also get more information on the amount of funding getting allocated to the development both public and estimated private investment. Hydrogen growth in Europe, specifically that north south corridor from Italy to the Netherlands is expanding at lightning speed. It’s definitely exciting to watch. And I’m hoping the US takes notice on how to develop projects alongside growing hydrogen demand and infrastructure. They’re showing us the blueprint. Now let’s see if we can keep up. Next in an article in Investorplace Eddie pan writes Plug Power expands hydrogen partnership with Uline. Plug has made a slew of announcements this month. The latest being an expansion of its partnership with shipping and packaging supplies company Uline. As part of this expansion, plug will install an 18,000 gallon hydrogen storage tank and 17 Hydrogen dispensers at Ulines new campus in Kenosha, Wisconsin.
These additions will power for distribution centers on the campus plug will also provide Uline with 250 more fuel cell forklifts that were received on site hydrogen power and a quote from Andy Marsh, CEO of plug the ongoing expansion of our eight year partnership with Uline stands as a testament to the remarkable impact our hydrogen and fuel cell technology has on material handling operations given Ulines business strategy of same day turnaround, productivity and predictability are important and are key benefits that plugs fuel cell solutions deliver to Uline. Plugs hydrogen infrastructure for Uline is expected to be operational within 10 months. You lines first distribution center at its new campus is expected to be completed this year, with additional building set to be constructed in later years. That could mean more hydrogen infrastructure services from plug.
Plug first partnered with Uline in 2015, with the company utilizing 270 Fuel Cell forklifts as of 2023. The expansion will lift that figure to 520 forklifts as well as a total of 34 Hydrogen dispensers across 10 facilities. ULINE is a major customer of the green hydrogen company. Earlier this week plug also announced that it had finalized a contract with an undisclosed major US automobile manufacturer. The contract will see plug provide the manufacturer with a fuel cell fleet to liquid hydrogen storage tanks and over 10 Hydrogen dispensers to support its manufacturing campus of over six square miles. Installation of the hydrogen infrastructure will begin this year with an estimated operational date in the first quarter of 2025. Meanwhile, plug has a major catalyst coming up. The company has confirmed that it will report its q4 earnings on Friday, March 1, before the market open. Analysts are expecting an 8% revenue decline to 203 million and a GAAP earnings per share loss of 41 cents.
Okay, so even more big news from plug as they continue rolling out projects and deliveries. Now we’ll see what their q4 numbers look like. But I wouldn’t be betting alongside the analysts. That plug will show a revenue decline from their Tennessee plant going down and other projects not moving forward. But q1 of this year has been a drastically different story. With both Tennessee and Georgia online hydrogen shipments delivered as well as this announcement with Uline. This quarter has been all plug and deservedly so they need to show the successes and bring in significant revenue in order to boost that stock price and begin increasing those earnings per share.
All right, 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 podcasts, Spotify, Google, YouTube, whatever it is, that would 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@thehydrogenpodcast.com. So until next time, keep your eyes up and honor one another. Hey, this is Paul. I hope you liked this podcast. If you did and want to hear more. I’d appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.
