Greater demand: Great potential for hydrogen: This is how Plug Power wants to expand its market share | news

• Plug Power feels increased demand as a result of the Ukraine war
• Plug power with diversification in terms of customers and countries
• Goldman Sachs has an impressive forecast for the hydrogen market, according to Marsh

Above all, the war in Ukraine has clearly demonstrated Europe’s dependence on Russian raw materials. Efforts to reduce this dependency are correspondingly great. So is hydrogen specialist Plug Power, whose CEO Andy Marsh reported in an interview with “Bloomberg” that demand has been on the rise in recent weeks and that the business has received a big boost globally. “The faster we switch to renewables and hydrogen, the faster Europe and the world will become more independent,” says Marsh, referring to rising commodity prices and sometimes tight supply chains.

Unlike electric vehicle manufacturers, which often need nickel for their batteries, which according to “Bloomberg” comes largely from Ukraine, Plug Power has not been affected by supply chain disruptions, according to its CEO. For example, Plug Power primarily needs iridium, most of which comes from South Africa, Marsh explained. The effects of the Ukraine war are barely felt there. In addition, Plug Power has an agreement with the British company Johnson Matthey to supply the precious metals needed for the electrolyser systems. As “Der Aktionär” reported last year, the collaboration will primarily focus on the development, validation and integration of Johnson Matthey’s materials into Plug Power’s electrolyser systems. As Andy Marsh told Bloomberg, they also have close ties with Australian mining company Fortescue Metals and are even building a joint factory in Australia. According to the CEO of Plug Power, this provides some predictability in difficult times.

Plug Power Expands Customer Base

Otherwise, the hydrogen specialist’s business is apparently doing well. According to Marsh, the US company doubled its sales last year despite supply chain problems and will do so again this year. However, you have to “work at it every day and you need the right relationships to be successful,” says the CEO. Apparently this has been built in the last few months. Because while last year, according to “Bloomberg,” 70 percent of Plug Power sales went to the accounts of major Amazon and Walmart customers, according to Marsh, the company has now diversified more broadly, both in terms of clients and geographically. Plug Power managed to close 14 new deals with other customers, especially in the area of ​​electrolyzers, so, according to the head of the company, sales in this business area will account for about 20 percent of total sales in 2022. In last year, however, no money had flowed here. But even if Plug Power is at least a little more independent from Amazon and Walmart, Marsh stressed that the two US giants should and will continue to be major customers going forward.

This is the landscape for Plug Power action

However, the performance of Plug Power’s stock in the current year leaves much to be desired. After things initially took a turn for the worse earlier in the year, it was only the start of the Ukraine war in late February, and the associated forced switch from Russian fuels to sustainable energies, that caused a turnaround. Since then, the stock certificate has slowly but steadily risen again, but has hardly budged since the beginning of the year, and there is still a long way to go to the 52-week high of $46.50 from last November.

However, the CEO of Plug Power is confident in an interview with “Bloomberg” and referred to a forecast by the investment bank Goldman Sachs, according to which 20 percent of global energy requirements would eventually be covered by hydrogen. “Twenty percent of the world’s energy will eventually come from hydrogen, and fuel cells will run on that hydrogen,” Marsh said. “The company that created the first commercial market for hydrogen fuel cells is Plug Power. The company that is building the first green hydrogen grid in the US ” from which the public should also benefit.


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