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Zero-Emission Hydrogen Vehicle Co. Notes Successful Trials

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First Hydrogen Corp. says it recently completed a successful "real-world conditions" trial in Wales that also established a hydrogen ecosystem partnership for mobile refueling. See why one analyst says this stock is at "the very beginning of its growth cycle."

In an update on first-quarter corporate developments, First Hydrogen Corp. (FHYD:TSX; FHYDF:OTC; FIT:FSE) noted it recently completed a successful "real-world conditions" trial in Wales that also established a hydrogen ecosystem partnership for mobile refueling.

The company said it is "working with multiple fleet operators to help achieve their zero-emission objectives by increasing the number of FCEVs (hydrogen fuel cell-powered vehicles) and/or converting existing vehicles to FCEV."

"We are building strong relationships with governments, potential customers, and suppliers, aligning the need to reduce emissions and First Hydrogen's product offering," said Chief Executive Officer Balraj Mann.

Headquartered in Vancouver, British Columbia, First Hydrogen said it is working to help decarbonize the transportation sector in Europe and North America by manufacturing hydrogen FCEVs and producing and distributing the clean power on which they will run. This closed-loop solution to the vehicle emissions problem addresses supply and demand, the company said.

The company has projects in development and underway in Canada, the United Kingdom, and the European Union, in regions having governmental support, aggressive emissions targets, and carbon reduction strategies in place. It also has offices in Montreal, Quebec, and London, England.

"The green hydrogen market in North America is gaining considerable strength," Mann said. "For instance, the U.S. Department of Energy announced a (US)$7 billion program to launch seven clean hydrogen hubs across (the) U.S. as part of (the) U.S. national clean hydrogen strategy and road map. In Mexico, investment funds are starting to flow in the country, developing its vast green hydrogen potential. Finally, in Quebec, green hydrogen is one solution for the province to achieve carbon neutrality by 2050."

Technical Analyst Clive Maund recommended First Hydrogen as a Buy when it was CA$3.10 per share. At about the same time, Ron Struthers, founder and editor of Struthers' Resource Stock Report, indicated the company was "at the very beginning of its growth cycle" and its stock at an "attractive entry point." Now, First Hydrogen is trading at a third of that price.

The Catalysts: Positive Interest, Possible Vehicle Assembly Plant

In the update, First Hydrogen said there has been "significant and positive interest" from fleet operators in Quebec that have noted the need for hydrogen vehicles as an alternative to electric vehicles (EVs) during cold weather, which limits the battery life in a battery-only vehicle.

The company said it is developing additional demonstrator FCEVs to showcase the potential to North American fleets. It also proposes to build a vehicle assembly plant and green hydrogen production facility in Shawinigan, Quebec.

"The assembly facility target will be for annual production of up to 25,000 vehicles for distribution throughout North America and will represent a major boost to green technology jobs in the region," First Hydrogen said.

Technical Analyst Clive Maund recommended First Hydrogen as a Buy when it was CA$3.10 per share.

Three complete trials have been done on the FCEVs in real-world conditions, in London, Scotland, and in Wales with Wales & West Utilities.

Two members of WWU's emergency and metering services team drove First Hydrogen's hydrogen fuel cell-powered van while performing their job duties that involved driving and responding to customer calls, an average of five to six per day, with bulky equipment on board for making repairs.

During some of South Wales' coldest weather, the first call operatives drove a total of 2,000 kilometers, or 1,200 miles, the longest distance of any of First Hydrogen's vehicle trials to date.

"The FCEV demonstrated its capability for demanding duties, such as carrying heavier payloads, towing and powering auxiliary equipment (onboard power)," First Hydrogen said. "There was no decrease in vehicle performance or range when operating in colder temperatures. Drivers from all three trials noted the FCEV's drivability ease, quick refueling, and range (630 kilometers/390 miles, on a single refueling)."

"The fact you can quickly refuel rather than charge up overnight is a massive advantage for us, as sometimes we respond to calls from our homes in the middle of the night," said one of the drivers in the Wales trial, Alun Jones. "I can definitely see the hydrogen vans working at WWU in terms of the efficiency we need."

First Hydrogen said it is in discussions with various fleet operators to add the vehicles and/or convert existing ones.

"First Hydrogen is planning details for the next batch of trials, which will include some of the largest companies in Europe and the world," the company said.

Significant Growth Expected in Market

The global FCEV market is forecasted to experience significant growth in the next eight years, expanding at a 49.1% compound annual growth rate, according to DataHorrizon Research. The market is projected to hit US$82.1 billion in value by 2032, up from US$2.2 billion in 2023. Driving the growth in large part is the increasing demand for alternative fuel sources.

Fueling the green hydrogen market in general, MarketsandMarkets indicated, is in high demand from the transportation industry due to the energy's superior performance and zero carbon emission. 

Eventually, FCEVs will become commonly used by long haulers, service fleets, taxis, and last-mile delivery services, Struthers indicated. Based on the new technology's S curve of behavior, he wrote now that FCEVs are accepted, they should experience the strongest growth in the market.

"For example," he wrote, "if the new technology has 5% of the market, the growth to 50% is a 1,000% increase. Currently FCEVs have less than 5% of the electric vehicle market."

streetwise book logoStreetwise Ownership Overview*

First Hydrogen Corp. (FHYD:TSX; FHYDF:OTC; FIT:FSE)

*Share Structure as of 4/5/2024

Ownership and Share Structure

As for ownership, according to the company, two insiders hold 5.14%, or 3.71 million (3.71M) shares, of First Hydrogen. From most to least interest held, these investors are Nicholas Wrigley with 4.16% or 3M shares, Chairman and Chief Executive Officer Balraj Mann with 0.98% or 0.71M shares.

One institutional owner, Fuchs & Associés Finance SA, holds 0.01% or 0.01M shares.

Retail investors own the remaining. 

Regarding the share structure, First Hydrogen has 72.03M outstanding shares and 67.36M free float traded shares.

Its market cap is CA$79.2 million. Its stock has traded between CA$1.00 and CA$3.80 per share over the past 52 weeks.

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Important Disclosures:

  1. First Hydrogen Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Hydrogen Corp. 
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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