Estimated Demand for 6 Million Hydrogen Powered Vehicles in North America

Source: Streetwise Reports 01/18/2024

First Hydrogen has published its North American market study, where it estimates there will be 8 million vehicles by 2035. Read on to see why analysts like this company’s stock.

First Hydrogen Corp. (FHYD:TSX; FHYDF:OTC; FIT:FSE) announced in a press release on January 16, 2024, that the company had published the results of its North American market study, which shows a clear demand for the company’s hydrogen-powered-fuel-cell light commercial vehicle (FCEV). The company stated that it estimates that the North American market has room for approximately 6 million vehicles at present and 8 million vehicles by 2035.

According to the press release, the company’s market study was put together by Sacre Davey Engineering Inc., and the firm reviewed 104 entities operating vehicle fleets and found data to suggest a current demand for around 6 million hydrogen-powered vehicles.

The company’s CEO and Chairman, Balraj Mann, commented, “The Sacre-Davey study and survey confirm the market for FECVs for fleet operators and owners presents an exceptional opportunity for our company. With Canada eliminating gas and diesel vehicles by 2035 and the United States establishing up to 10 hydrogen hubs, the Company’s Hydrogen-as-Service can contribute to the zero-emission vehicle and green hydrogen markets.”

Market Set to Grow by 43% Per Year

The market for hydrogen-powered vehicles is expected to grow considerably, by roughly 28% per year, by 2032 due to pressure from governments to find green energy solutions. According to Grand Market Insights, the market size for hydrogen vehicles was estimated to be about US$2.8 billion in 2022. According to Grand Market Insights, another driver for the market is the public’s growing demand for environmentally friendly alternatives to gas-powered cars.

Allied Market Research predicted that the market will be valued at US$57.9 billion by the year 2032 and predicted an even higher growth rate of 43% per year. Allied Market Research stated that it believes that recent advances in technology have offset the cost of building infrastructure for hydrogen-powered vehicles.

Potential Rival for Electric Vehicles

Technical Analyst Clive Maund reviewed First Hydrogen in July of 2023 and rated the company as a “Buy” for potential investors. Maund cited the company’s stock patterns in his estimation of the company’s rating, commenting, “There has been some determined heavy buying in recent days, and with the 50-day moving average turning higher, it looks like it is starting to break out of the latest bull Flag shown into another upleg.” Maund also believed the company’s string of public successes would have a positive impact on the company’s stock value.

Ron Struthers, in July of 2023, positioned the company as a possible rival of Tesla in his review. Struthers highlighted the advantages provided by the company’s hydrogen-fueled vehicles, which have a longer range, are more cost-efficient, and are more resilient against cold temperatures compared to electric vehicles.

Struthers commented, “First Hydrogen is at the very beginning of its growth cycle. It will have revenues from selling FCEVs that have now reached acceptance, and I expect it will soon see major purchase orders.” [OWNERSHIP_CHART-10890]

The company has a number of catalysts to report, according to its investor presentation, and expects to have its first generation of vehicles out by 2026 and its next generation of large vehicles out by 2028.

Ownership and Share Structure

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 5.37% of the company.

According to RefinitivReuters, Head of Strategy Nicholas Wrigley owns 4.23% of the company with 3 million shares. Chairman and CEO Balraj S. Mann owns 1.00% of the company with 0.71 million shares, and Director Alicia Milne owns 0.14% of the company with 0.10 million shares.

Refinitiv reports that the rest is in retail.

According to Refinitiv, there are 70.92 million shares outstanding with 67.11 million free float traded shares, while the company has a market cap of CA$120.56 million and trades in the 52-week period between CA$1.40 and CA$4.60.

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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. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: FHYD:TSX; FHYDF:OTC; FIT:FSE, )