Hydrogenics Corporation (USA) (NASDAQ:HYGS) announced that it has entered into a strategic partnership with StratosFuel, which, subject to permitting and funding, would result in North America’s largest zero-emission hydrogen power plant. The 2.5-megawatt Zero Impact Production (ZIP) hydrogen facility in Palm Springs, California will use Hydrogenics’ state-of-the-art PEM electrolyzers to convert wind and solar energy into 1,000 kilograms of renewable hydrogen per day.
The Palm Springs region in California has an abundance of wind and solar power. By using StratosFuel’s power purchase agreement, Hydrogenics electrolyzers will enable StratosFuel to provide clean renewable hydrogen to hundreds of fuel cell vehicles every day in the Southern California region.
“We are very pleased to enter into this strategic collaboration and be the exclusive supplier for the largest commercial MW-scale Power-to-Gas plant in North America,” said Daryl Wilson President & CEO of Hydrogenics. “Our PEM technology gives us the ability to bring the world’s most efficient electrolyzer to the US market for 100% clean, renewable hydrogen production. By working with StratosFuel, we will help them move forward to meet and exceed government regulations on renewable hydrogen and put it to use powering fuel cell vehicles in the area.”
The ZIP Hydrogen facility will be constructed in three phases. Phase 1 – the 2.5 megawatts – is currently undergoing permitting and funding approval and is expected to begin construction in 2017. Upon successful implementation, it is envisioned that the capacity of the plant will be doubled in Phase 2 and further expanded in Phase 3 as the demand for renewable hydrogen grows in the State of California.
“Utilizing wind and solar energy to create hydrogen represents a paradigm shift to a cleaner and more sustainable source of fuel for transportation and industry,” stated Jonathan Palacios-Avila CEO at StratosFuel. “To locally produce hydrogen that is 100% carbon-free is a major milestone, and we are pleased to be working with Hydrogenics to make this a reality.” (Original Source)
Shares of Hydrogenics closed yesterday at $5.45, down $0.20 or -3.54%. HYGS has a 1-year high of $12.08 and a 1-year low of $4.65. The stock’s 50-day moving average is $6.02 and its 200-day moving average is $6.95.
On the ratings front, Roth Capital analyst Craig Irwin maintained a Buy rating on HYGS, with a price target of $13, in a report issued on October 10. The current price target implies an upside of 139% from current levels. According to TipRanks.com, Irwin has a yearly average loss of 6.2%, a 33% success rate, and is ranked #3866 out of 4178 analysts.
Hydrogenics Corp. designs, develops and manufactures hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology. It offers expertise for a range of applications, including hydrogen generators for industrial processes and fueling stations; hydrogen fuel cells for electric vehicles, such as urban transit buses, commercial fleets, utility vehicles and electric lift trucks; fuel cell installations for freestanding electrical power plants and UPS systems; and provides solutions for energy storage and transport. The company operates through 2 segments: OnSite Generation and Power Systems. The OnSite Generation segment is based in Oevel, Belgium and develops products for industrial gas, hydrogen fueling and renewable energy storage markets. The Power Systems segment is based in Mississauga, Canada, with a satellite facility in Gladbeck, Germany, and develops products for energy storage, stationary and motive power applications.