– It shows that there is demand for HydrogenPro technology and that the cooperation with Andritz is quickly paying off, says Pareto analyst Gard Aarvik.
– This order represents a major milestone for our partnership with Andritz, and is the first step in our European expansion, says HydrogenPro CEO, Jarl Dragvik.
The plant is expected to be commissioned in 2026, with an annual production capacity of around 9,000 tonnes of green hydrogen which will be used to decarbonise the production of Salzgitter’s largest plant ever.
– First of all, there is no official purchase order yet, but when it arrives it is clear that this is an important agreement for the company. This is only the second major deal they have secured, the first being a handover to Mitsubishi. The agreement shows that there is demand for HydrogenPro technology and that the cooperation with Andritz is quickly paying off, says Pareto analyst Gard Aarvik.
He believes there may be more orders in the future, and highlights a giant market for HydrogenPro services.
The green hydrogen market is huge. If you just look at industries that today already use hydrogen as an input factor into production, such as ammonia and oil refining, the market for replacing hydrogen used by these industries is made of natural gas today, which is larger than all announced production through 2030. Additionally, Arvik says , you have other potential industries within transportation, energy storage and new industry.
HydrogenPro confirms that the market will be further informed when the purchase order from Andritz Group is received and final terms are determined.
A year full of challenges
However, HydrogenPro’s share price performance has been bleak for shareholders. The share is down 72.9 percent from its peak of 74.5 in January 2021, and is down 30 percent so far this year.
– It is clear that in terms of stocks, the company, like many other green companies, has had a challenging year with rising interest rates and inflation. Meanwhile, the company has made operational delivery according to plan, which is good. However, we have seen that processes in the industry take time, which means that the announcements we would have really liked to see this year will likely not come even next year, says Arvik.
He is excited about how the new strategy is being implemented, and is positive about the funding opportunities.
– It will be interesting to see how the problem of financing the planned expansion in the United States of America is solved. Financing possibilities, all other things being equal, should be better in our opinion when you see the company win more contracts.
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