Co. to Build, Demo Fuel Cell Vehicles Run on Clean Hydrogen

First Hydrogen Corp. (FHYD:TSX; FHYDF:OTC; FIT:FSE) initiated a hydrogen-powered fuel-cell vehicle (FCEV) program in North America, in which it is building two zero-emission demonstration FCEVs to showcase to prospective fleet customers in the region, a news release noted.

"The application of our hydrogen powertrain technology to a North American vehicle platform will show the technology to a new set of customers," Steve Gill, head of automotive at First Hydrogen, said in the release.

The company previously rolled out its first such program in the United Kingdom (U.K.), which has been successful and is ongoing, noted the release.

The North American counterpart is the next step in First Hydrogen's plan to construct a 350-megawatt green hydrogen production facility and vehicle assembly factory in Shawinigan, Quebec. Once online, the company will provide customers in the Montreal-Quebec City area with green hydrogen fuel and zero-emission commercial vehicles.

Developing an Integrated Solution

First Hydrogen, based in Vancouver, British Columbia, Montreal, Quebec, and London, England, is working toward facilitating decarbonization of the transportation sector in Europe and North America, explained the company's chairman and chief executive officer Balraj Mann.

It is developing a closed-loop, green hydrogen-based solution to the vehicle emissions problem, which addresses both supply and demand by manufacturing FCEVs and producing and distributing green hydrogen for their operation.

With its solution, the company 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.

Now is an opportune time to invest in First Hydrogen, Mann said, given it has already proven its hydrogen-powered FCEV concept for light-duty vehicles through testing over 6,000 kilometers in Great Britain earlier this year. Since then, numerous large fleet operators there have been trying out the FCEVs.

"The U.K. trials have shown hydrogen power will be essential to meet the critical range, payload towing and fast refueling capabilities required by fleet operators in sectors such as grocery, parcel delivery, mining and utilities which cannot be met by battery-electric vehicles," the release noted.

Also making the company attractive now is the fact it "is at the very beginning of its growth cycle," Founder and Editor Ron Struthers wrote in his July 12, 2023 Struthers' Resource Stock Report. In the article, he highlighted First Hydrogen as a company "very well-positioned for the development of hydrogen and FCEVs."

He added, "[The company] will have revenues from selling FCEVs that have now reached acceptance and I expect will soon see major purchase orders. First Hydrogen will also make revenues producing and selling hydrogen."

Growth Forecasted in Both Sectors

As for the green energy transportation sector, significant growth is anticipated, according to Struthers, with FCEVs eventually becoming commonly used by long haulers, service fleets, taxis and last mile delivery services. Importantly, based on new technology's S curve of behavior, he wrote FCEVs are now about to experience the strongest growth in the market. This stage follows acceptance, which, Struthers noted, FCEVs have just achieved.

"For example," he added, "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."

High demand from the transportation industry is driving the green hydrogen sector, according to the market research platform MarketsandMarkets, due to the energy's superior performance and zero carbon emission. As such, continued expansion in this market is expected globally, at a 61% compound annual growth rate (CAGR) to 2027.

Similar growth of the market to 2027 is expected in the U.K., one of First Hydrogen's geographical targets, at a 58% CAGR.

Regarding the company's second area of focus, North America, it "is primed for a hydrogen revolution due to its existing oil and gas experience and infrastructure, a wide variety of existing and potential demand sectors and diverse energy resources," noted GlobalData, a data analytics firm.

As such, North America is expected to be one of the world's top regions for hydrogen production by 2050, producing about 20% of global supply, the Hydrogen Council asserted in its "Hydrogen Insights 2023" report.

Along with forecasted growth, the green hydrogen sector boasts "enormous government support" in various forms, Struthers pointed out, from building infrastructure to offering tax incentives. In Canada, he wrote, First Hydrogen may benefit from national and provincial (Quebec) inducements, including investment tax credits for clean hydrogen and zero-emission technology manufacturing and lower tax rates for zero-emission technology manufacturers.

The Catalysts

Events that could boost First Hydrogen's stock, according to Mann, include orders of its FCEVs by one or more fleets in the U.K. and progress on building its Canadian facilities for assembling vehicles and producing green hydrogen.

Technical Analyst Clive Maund rated the hydrogen company Buy in his July 2023 report.

Around the same time, Struthers indicated the company's stock price, then about CA$3.10 per share, was at an "attractive entry point." Now, the share price is even lower, at about CA$1.68.

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

Ownership and Share Structure

According to First Hydrogen, it has 70.92 million (70.92M) outstanding shares and 66.5M free-float traded shares.

Of its outstanding shares, insiders own about 3.9M, or 5.5%. Specifically, Executive Chairman Nicholas Wrigley owns 4.23% of the company, or 3M shares. Chairman and CEO Balraj Mann owns 1%, or 0.71M shares. CPA Barry Hartley and Director Alicia Milne each owns 0.14%, or 0.1M shares.

As far as institutional ownership, Van Eck Associates Corp. holds 0.72%, or 0.51M shares.

First Hydrogen has a market cap of CA$83.28M. Trades in the 52-week range from CA$1.40 per share to CA$4.29.