RE: Analysis if ITM Power (Correct Link)1 May 2021 16:18
On the whole I found the comment very positive, however where I felt it lacked substance was in the analysis of the global market and future trends. I had a smile at his throwaway comment about solar power, a little over the top considering the available figures and it for me it was too reminiscent of Musks opinion of fool cells, but after all, it is a perfectly valid opinion to hold, for which only time will provide an answer. He was to my mind a little dismissive of the sales figures without looking at the actual orders, where he would have perhaps found a clue as to the reason. I think I am right in saying that every single order to date has been for the supply of an electrolyser for trial purposes and I'm guessing that the pipeline contains many more of the same type. If we were to look a little beyond (hopeful successful) trial orders to substantial completions, we would understand the reasoning behind the projected 2nd factory, because when negotiating the trial orders, I'm sure that the customer would have indicated their intended course of action should the trial be a success. Barclays predicted that meeting 15% of global hydrogen demand by 2030 will require a 150-fold increase in the size of the annual electrolyser market. ITM will be aware of the course current trials are taking and their success or otherwise. From what I've read, they seem to be meeting/surpassing expectations. Further to the exponential growth of wind, we are beginning to see significant growth in the trials of tidal power. Trials with floating tidal turbine technology continue a pace, with the latest launch of a 2MW tidal turbine, the Orbital O2, in Dundee last month, these will continue unabated, I'm sure. So while you can look at the bare figures with a certain amount of trepidation, when you bring the global market and the political, economic and environmental background into focus, the picture starts to look a lot more promising/exciting. More importantly , I think that background makes the current share price look cheap.