Hydrogenics Corporation (USA) (NASDAQ:HYGS), a leading developer and manufacturer of hydrogen generation technology and hydrogen fuel cell power modules, today announced that it has been selected to join a consortium of European companies, including Air Liquide, for a €15 million Power-to-Gas demonstration project in Denmark named HyBalance. The budget of the project is more than €15 million and is supported by the European Fuel Cells and Hydrogen Joint Undertaking as well as the Danish ForskEL program, administered by Energinet.dk.
The HyBalance project will validate the highly dynamic PEM electrolysis technology and innovative hydrogen delivery processes involved but also demonstrate these in a real industrial environment by applying the latest hydrogen production and delivery equipment. The HyBalance setting is unique in demonstrating the multiple applications of Power-to-Gas technologies, including how hydrogen can be used in multiple high value markets such as industry and clean transportation, and the project will provide business models for these applications.
The EU has made a commitment to a forward-looking climate policy to decarbonize the economy and promote energy security. Until recently, the focus has been on renewable generation and conservation; now the mandate has been broadened to include all energy sectors. However, decarbonizing the transport and industrial energy sectors is more challenging due to the limitations of biomass sources. Power-to-Gas applications provide the means to convert renewable electricity into hydrogen and, in so doing, supply an abundant source of renewable fuel for transportation and industrial applications.
Hydrogenics’ PEM electrolysis technology will be deployed at the project site in Hobro, Denmark to produce hydrogen from excess wind-generated energy; the 1MW PEM electrolyzer will also enable grid balancing services. The hydrogen will then be stored and transported either by pipeline for industrial applications or by advanced, high pressure trailers and used in fueling applications in Denmark.
Hydrogenics CEO, Daryl Wilson, stated, “We are thrilled to bring our world-leading PEM electrolysis technology to this important project. HyBalance will provide a unique opportunity to help the EU achieve its goals to reduce fossil fuel dependency, while still meeting demand for total renewable electricity. This plant will be designed to provide both grid balancing services and hydrogen for industry and transport. We are pleased to work with such world-class partners and in the country of Denmark, where decentralized, clean renewable electricity is a normal way of life.”
In Europe, Hydrogenics has deployed Power-to-Gas systems capable of storing over 100 MW-hours of energy every day.
Hydrogenics equipment will be built and delivered in 2016, with start of operations for HyBalance expected in late 2017. (Original Source)
Shares of Hydrogenics closed yesterday at $7.98. HYGS has a 1-year high of $17.55 and a 1-year low of $5.41. The stock’s 50-day moving average is $7.65 and its 200-day moving average is $8.85.
On the ratings front, Hydrogenics has been the subject of a number of recent research reports. In a report issued on February 3, Roth Capital analyst Craig Irwin reiterated a Buy rating on HYGS, with a price target of $13, which represents a potential upside of 62.9% from where the stock is currently trading. Separately, on December 2, Cowen’s Jeff Osborne initiated coverage with a Hold rating on the stock and has a price target of $13.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Craig Irwin and Jeff Osborne have a total average return of -16.3% and -17.5% respectively. Irwin has a success rate of 23.0% and is ranked #3578 out of 3638 analysts, while Osborne has a success rate of 39.3% and is ranked #3538.
Hydrogenics Corp along with its subsidiaries, designs, develops and manufactures hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology.