Trial of Emission-Free Van Yields Positive Feedback

First Hydrogen Corp.'s (FHYD:TSXV; FHYDF:OTC; FIT:FSE) hydrogen fuel cell-powered vehicle (FCEV) was just trialed for four weeks by Wales & West Utilities (WWU) in the United Kingdom (U.K.), and the feedback was positive and insightful, noted a news release. WWU is a gas distribution network looking into potentially swapping out its existing fleet for zero-emissions vehicles.

"These trials proved that hydrogen mobility is still possible for fleet operators without access to fixed hydrogen refueling infrastructure," First Hydrogen said. The trials were supported by Protium Energy Solutions, which provided green hydrogen to fuel the vehicle, and Hyppo Hydrogen Solutions, which supplied a re-deployable hydrogen refueling unit.

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.

Longer term, First Hydrogen targets 2026 for debuting its first generation of FCEVs and 2028 for releasing its next generation of large vehicles.

"The FCEV demonstrated its capability for demanding duties, such as carrying heavier payloads, towing and powering auxiliary equipment (onboard power), as well as the full power capability of the fuel cell module, with outputs higher than 60 kilowatts in transient accelerations," the release explained.

The drivers reported a good overall experience with the van. One of them, Alun Jones, said, "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. I can definitely see the hydrogen vans working at WWU in terms of the efficiency we need."

Stephen Offley, a WWU transport manager, added, "We are impressed with how the van operates and its overall performance, particularly as this is a prototype vehicle, and we were breaking new ground by creating our own hydrogen vehicle ecosystem."

From this trial, First Hydrogen yielded and analyzed lots of data, from which it discovered and passed on additional ways to improve fuel consumption and optimize efficiency. Also, from the information, they calculated a total cost of operations, which they presented to WWU's board.

Solving Vehicle Emissions Problem

Headquartered in Vancouver, British Columbia, First Hydrogen is working to help decarbonize the transportation sector in Europe and North America, said the company.

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

It aims to manufacture hydrogen FCEVs and produce and distribute the clean power on which they will run. This is a closed-loop solution to the vehicle emissions problem, and it addresses supply and demand.

First Hydrogen is making it possible for transportation fleets to employ these next-generation vehicles and is creating ecosystems to foster expansion in regions with high growth potential. The company has projects in development and underway in Canada, the U.S., the U.K. and the European Union, in regions having governmental support, aggressive emissions targets, and carbon reduction strategies in place. First Hydrogen also has offices in Montreal, Quebec, and London, England.

Material Growth Expected in Sector

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 (US$82.1B) in value by 2032, up from US$2.2B 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, indicated Ron Struthers, founder and editor of Struthers' Resource Stock Report. Importantly, based on 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."

Catalysts To Watch For

In the short term, First Hydrogen said it expects to land one or more orders for its hydrogen FCEVs from a fleet and complete two facilities in Quebec, one for assembling vehicles and the other for producing hydrogen.

"I expect we'll soon see major purchase orders," wrote Struthers, who has covered the company in his investment newsletter.

Longer term, First Hydrogen targets 2026 for debuting its first generation of FCEVs and 2028 for releasing its next generation of large vehicles.

Optimal Time To Invest

Technical Analyst Clive Maund recommended First Hydrogen as a Buy when it was CA$3.10 per share. At about the same time, Struthers 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 less than half that price.

In a burgeoning and government-supported sector and on the cusp of significant growth and expansion, First Hydrogen is a company worth investing in today, experts said.

Ownership and Share Structure

As for ownership, according to the company, two insiders hold 7.47%, or 3.71 million (3.71M) shares, of First Hydrogen. From most to least interest held, these investors are Nicholas Wrigley with 4.22% 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 71.07M outstanding shares and 67.36M free float traded shares.

Its market cap is CA$92.39million. Its stock has traded between CA$1.25 and CA$3.93 per share over the past 52 weeks.

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. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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. 

For additional disclosures, please click here.