Plug Power revenue and CapEx estimates (S&P Capital IQ)
5M tons of hydrogen would be equal to about a third of the energy Germany imports from Russia. The fuel will be produced using renewable power in Australia and will be distributed by E.ON. German energy giant E.ON SE and a unit of Australia-based Fortescue Metals Group Ltd will work together to deliver 5M metric tons of green hydrogen a year by 2030.
PLUG believes that it's one of the leading players in green hydrogen in the US.īut, German energy behemoth E.ON SE ( OTCPK:EONGY) also committed itself as a critical supplier to Europe's needs. Furthermore, it's questionable whether these projects would eventually be FCF profitable. Notably, these are long-term projects that require significant CapEx investments. Therefore, renewable and alternative energy plays have received a massive boost from Europe's need to wean off Russian energy. The implications for European industry would be disastrous." Europe might not need the gas by then if it hits its renewable energy targets."Ĭolumbia University's Center for Global Energy Policy also accentuated: "There is no replacement for the Russian gas that Europe imports. Then they would need 15 years of sales contracts to pay off. Furthermore, the Oxford Institute for Energy Studies highlighted that "LNG is no quick fix." It added (edited): "Current US projects could yield an export boom, starting in 2026. However, its ability to decouple from Russian energy is also predicated on the supply sustainability of US LNG exports. As a result, Europe has communicated its long-term commitment to wean itself off Russian energy by slashing Russian gas imports by two-thirds. However, energy has been weaponized in the recent geopolitical tensions between the West and Russia. Furthermore, Russia exported 197.7B cubic meters of natural gas in 2020, with Europe as one of its most significant customers. Russia is the world's second-largest crude exporter, as it accounted for 4.6M barrels a day before the conflict, behind Saudi Arabia's 6.7M barrels. Moreover, despite its aggressive revenue growth estimates, we aren't sure when the company will turn FCF profitable.Īs such, we have rotated our position in PLUG to other growth stocks, given the recent tech bear market. We decided that PLUG stock was too speculative for our portfolio. We have been deliberating about our speculative position in PLUG stock. We also took the opportunity to cash out of PLUG stock finally. Consequently, renewable and alternative energy players have also seen their stocks recover remarkably. However, the Russian invasion of Ukraine has compelled its Western European neighbors to commit to decoupling from their dependence on Russian energy. The previous boost on the hype from the Biden Administration's infrastructure plan was quickly digested from November through late February. However, PLUG stock has been battered since its highs in early 2021.
( NASDAQ: PLUG) stock surged significantly on recent tailwinds related to the Russia-Ukraine conflict. Petmal/iStock via Getty Images Investment Thesis
0 kommentar(er)
