Thyssenkrupp Nucera, a hydrogen electrolysis specialist based in Dortmund, Westphalia, is poised to capitalize on the soaring demand for climate-neutral hydrogen in the near future. In anticipation, the company forecasts a substantial sales surge of over 10% in the upcoming 2023/24 fiscal year, following an impressive 70% revenue jump to €653 million during the previous 2022/23 period.
Thyssenkrupp, an industrial powerhouse, holds a majority stake in the company, owning 50.2%, while Italian electrochemical technology manufacturer Industrie De Nora possesses a 25.9% share. Founded around 750 employees worldwide, with plans to recruit several hundred more during the current fiscal year, Nucera has been involved in chlor-alkali electrolysis for decades.
Green hydrogen plays a vital role in climate protection and will serve as a crucial energy source in various applications. It will generate electricity in power plants when solar power and wind energy are temporarily unavailable and will replace carbon in industrial processes, thereby reducing harmful carbon emissions.
Nucera manufactures modular electrolysers capable of absorbing up to 20 megawatts of electricity each. These modules can be used in tandem for large-scale projects, with four standard modules already deployed. The company's first US-based plant is slated to launch in the spring.
Nucera enjoys a strong position in the green hydrogen sector due to existing contracts for water electrolysis projects totaling over 3 gigawatts. This capacity equates to the production of over 150 modules, with the aim of providing five gigawatts of electrolysis capacity annually by 2025/26.
The company reported impressive earnings growth in the past fiscal year, with earnings before interest and taxes (EBIT) surging from €8.8 million to €23.8 million. After-tax profits also increased significantly, leaping from €6 million to €22.5 million. Nevertheless, the company anticipates negative EBIT for 2023/24 due to the costs associated with ramping up its hydrogen business with additional investments.
In response to the promising figures, Nucera shares experienced a robust increase of approximately 4.5% in the early afternoon trade, placing it among the top performing stocks in the SDax segment. Despite the initial IPO quotation of €20.20, the shares still present an attractive investment opportunity for investors seeking exposure to the green hydrogen market.
*Zero-emission hydrogen set to become a pivotal energy source in the future. Climate-neutral hydrogen will be instrumental in generating electricity during periods of reduced solar and wind energy output, as well as replacing carbon in various industrial processes, thereby reducing carbon emissions.
Thyssenkrupp Nucera is already building momentum in the competitive hydrogen market with its modular electrolysers capable of breaking down water into hydrogen and oxygen using electricity. The company's focus on green hydrogen technology and strategic partnerships positions it well to capitalize on the expanding market, with potent plans to boost its electrolysis capacity to five gigawatts per annum by 2026*.
