Will the McPhy Energy share now compete for the Nel share?


With the hydrogen boom, new companies are constantly emerging, but they do not always have to have a golden future ahead of them. On the contrary: if the market is saturated and consolidation begins, many of them are likely to disappear in the long term.

So far, however, the companies have still met an apparently infinite demand, which is why they can continue to thrive. A value that has made a name for itself in the past few weeks due to its price increase of over 500% in the meantime is that McPhy Energy (WKN: A1XFA8) Action.

So it’s time to learn more about them.

McPhy Energy’s story

The small French company from La Motte (southern France) was only founded in 2008 and currently has no more than 98 employees. In the beginning, it developed groundbreaking technology with hydrogen solid-state storage. McPhy Energy has grown steadily due to the emerging hydrogen industry in recent years.

The Italian electrolyser pioneer Piel was taken over in 2013 and the McPhys Germany subsidiary was founded in the same year with the German company Enertrag AG. It manufactures particularly large electrolysers in the megawatt range.

The IPO took place in 2014, which raised 32 million euros. It was the starting signal for the acceleration of industrial development. In the same year, a 4,000 m² electrolyzer production facility was built in San Miniato (Italy). This was followed by membership in many important European hydrogen consortia and a joint venture was founded in Abu Dhabi in 2016.

2018 took place through a partnership with Electricity of France – EDF (WKN: A0HG6A) (France’s leading electricity provider) the accolade. The group took a 21.2% stake and invested 16 million euros.

McPhy Energy in 2020

And now, in 2020, a number of orders seem to be starting the next stage of development. For example, McPhy was selected to equip Europe’s largest CO2-free hydrogen plant (20 megawatt Djewels project in the Netherlands) with electrolysers.

The company also has offices in Singapore and the United States. McPhy has now won many well-known partners who could be very helpful in the further development.

Today McPhy Energy develops, manufactures and supplies plants for hydrogen production, storage and distribution worldwide and is therefore also a serious competitor for Nel (WKN: A0B733).

The company produces electrolysers including small, medium and large hydrogen production units and hydrogen storage solutions. It also develops and builds hydrogen filling stations and integrated hydrogen solutions.

McPhy Energy’s business development

Despite all the good developments, McPhy is still a very fragile investment. Sales have increased from EUR 3 million to EUR 11 million since 2013, but so far no profit has been made. In this context, EDF’s participation is worth gold, as it ensures financial stability and further expansion.

McPhy Energy has a solid balance sheet with almost 55% equity and low debt. This also speaks for the company. In the first half of 2020, sales increased by 24% to 5.4 million euros, but a loss of 4.3 million euros was still generated.

“The beginning of 2020 was marked by a series of commercial successes that demonstrate the industrialization of the hydrogen sector both in France and abroad. McPhy has been selected to equip projects such as Zero Emission Valley in the mobility sector in France or Djewels in the industrial sector in the Netherlands and has consolidated its position as an important technological and industrial partner in the hydrogen market. Regardless of the activity sector, the McPhy teams were able to support our customers despite the impact of the COVID 19 pandemic in the transition to CO2-free hydrogen, ”said McPhys CEO Laurent Carme.

The post Is the McPhy Energy share now competing for the Nel share? appeared first on The Motley Fool Germany.

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Christof Welzel does not own any of the shares mentioned. The Motley Fool does not own any of the stocks mentioned.

Motley Fool Deutschland 2020


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