Berenberg positive about hydrogen long-term outlook

Mcphy Energy SA

29/03/2023 11:30

** Berenberg still sees hydrogen playing an important role
in the energy transition and is positive about the long-term
outlook
    ** Existing demand in ammonia, refining, and green steel are
expected to be the biggest near-term opportunities for growth in
green hydrogen, it says
    ** Technology and reliability are considered the biggest
drivers of success for electrolyser- and fuelcell-focused names,
 the broker adds
    ** Noting the improving policy support, the broker sees U.S.
mechanisms more likely to stimulate demand
    ** In certain cases, however, EU subsidies can result in a
lower levelised cost of hydrogen
    ** According to a survey conducted by the brokerage, a lack
of infrastructure is likely to cause the biggest delays to
hydrogen project final investment decisions
    ** Berenberg names Ceres Power  CWR.L  and Norway's Nel
 NEL.OL  (both "buy") its top picks
    ** It upgrades ITM Power  ITM.L  to "hold" from "sell",
seeing less scope for material downside in near-term after the
company outlined a strategy to significantly reduce costs 
    ** It maintains "hold" on French firm McPhy  MCPHY.PA ,
Sweden-based PowerCell  PCELL.ST 
    


 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))