Proton Motor Power Systems Share Discussion Threads

[skinny] 18/8/2020 08:38

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About Proton Motor Fuel Cell GmbH



Proton Motor has more than 20 years of experience in Power Solutions using CleanTech technologies such as hydrogen fuel cells, fuel cell and hybrid systems with a zero carbon footprint. Based in Puchheim near Munich, Proton Motor offers complete fuel cell and hybrid systems from a single source - from the development and production through the implementation of customized solutions. The focus of Proton Motor is on back-to-base, for example, for mobile, marine and stationary solution applications. The product portfolio consists of base-fuel cell systems, standard complete systems, as well as customized systems.



Proton Motor serves IT, Telecoms, public infrastructure and healthcare customers in Germany, Europe and Middle East with power supply solutions for DC and AC power demand. In addition to power supply, SPower also offers solutions for Solar Systems as well as a new product line for Solar Energy Storage.



Proton Motor Fuel Cells GmbH is a wholly owned subsidiary of Proton Motor Power Systems plc. The Company has been quoted on the AIM market of the London Stock Exchange since October 2006 (code: PPS).

Chairman´s report

We are pleased to report our unaudited results for the six months ended 30 June 2020.

Overview:

Proton Motor Power Systems plc (formerly Proton Power Systems plc) has made further progress this year in proving its technology, building on its strategic co-operations and sales pipeline. We have strengthened our organisation to be able to deliver complete power supply solutions. Inspite of the COVID-19 backdrop a further strengthening of industry and consumer demand for alternative sources of energy continues to be evident in the period under review. Proton Motor´s technology offer continues to mature to remain aligned with this growing demand and supports the continuing commercialisation process of the group. This is evidenced by the record order intake in Q1 2020; the potential sales order and production pipeline is strong as at the date of this report.

Highlights and Financial Results 1HY 2020:

· In Q1 2020 Proton Power achieved a record quarterly order intake of £5.8m. Order intake in 2020 to the date of this report amounts to £6.5m [including the recently announced first order recently received from Shell New Energies]. At the date of this report this results in a production backlog at sales value amounting to £6.4m. This backlog will result in deliveries of varying configurations of fuel cell systems to customers both in 2020 and 2021.



· 80% of order intake in 2020 to the date of this report is derived from the stationary segment with other orders being spread across the mobile, maritime and rail segments.



· During the first half of 2020, we also received orders from E-Trucks Europe for refuse collection trucks and from Vonovia SE for stationary systems and we entered into a framework agreement with APEX Energy Teterow GmbH for ten containerised 100kW fuel cell systems.



· Having implemented from the onset all recommended protective measures at its factory in Puchheim, to date Proton has not been affected by COVID-19 as there has not been a single case of COVID-19 amongst the Company staff. Whilst our staff have to maintain social distancing and other recommended measures to protect themselves against the virus, our factory in Puchheim remains fully open and our production capacity is unaffected, thus being able to focus on manufacturing and delivering the above mentioned order intake. Other effects such as material supply bottlenecks have not been experienced to date.



· Sales in the first half of 2020 at £1,101k, when compared to the first half 2019 sales figure of £269k, have seen a substantial annual increase of 309%. Sales performance included deliveries to the stationary, mobile and maritime segments.



· Sales in the first half of 2020 at £1,101k exceed the full year sales figure of £769k achieved in 2019, i.e. already an increase of 43.1% over the full year 2019.



· Excluding the impact of the embedded derivative together with exchange losses, the operating loss in the first half of 2020 was £2,830k vs. £2,750k in the first half of 2019 which is in line with our budgeted expectations.

The movement relating to the embedded derivative is a non-operating, non-cash item, required by IFRS financial reporting, which is based on gauging the potential effects of partial convertible interest on loan financing.



· Cash burn from operating activities has increased during the period to £4.0m vs. £2.9m in the first half of 2019 reflecting the increased level of activities to deliver our sales pipeline. Cash flow is our key financial performance target and our objective is to achieve a positive cash flow in the shortest time possible. Current contracts are quoted with up-front payments reducing reliance on working capital as we continue to invest in our manufacturing capability. The cash position at 30 June 2020 was £337k vs. 930k at 30 June 2019.

Company history:

In the expansion, realignment and constant development of its core technologies, Proton Motor has consistently demonstrated deep market awareness. Proton Motor has survived in the clean tech fuel cell technology business when many companies failed in 2008 following the financial crash. In terms of technology design, Proton Motor's clean tech technology has always remained true to its vision and has driven innovation forwards into the new hydrogen world.

The Company began as Magnet Motor, starting fuel cell development in 1994 and opening its factory in 1998. The technology and application roadmap went from the world's first fuel cell powered fork lift truck to a fuel cell ship. After that we developed the triple hybrid Skoda bus in 2008. Containerised power solutions completed the application portfolio. All these applications are powered by our own fuel cell stacks, with a robust design for a long lifetime. The Company established operations in the Munich area and was one of the first German designers and manufacturers of fuel cells

Global fuel cell market:

The 2019 global fuel cells market size was valued at approximately USD 10.48 billion, according to a study conducted by the market research company Grand View Research. The upward trend in fuel cell demand is foreseen to continue throughout 2020 and beyond. Expecting a CAGR of 15.5 % during the years 2020-2027, the market size will exceed USD 33 billion in 2027.

Source: www.grandviewresearch.com/industry-analysis/fuel-cell-market

Increasing political commitment to hydrogen as an energy source:

European Union (EU)

The EU originated European Clean Hydrogen Alliance (ECH2A) was announced as part of the New Industrial Strategy for Europe, which was launched on 8 July 2020 within the context of the hydrogen strategy for a climate-neutral Europe .



The European Clean Hydrogen Alliance aims at an ambitious deployment of hydrogen technologies by 2030, bringing together renewable and low-carbon hydrogen production, demand in industry, mobility and other sectors, and hydrogen transmission and distribution. With the alliance, the EU wants to build its global leadership in this domain, to support the EU's commitment to reach carbon neutrality by 2050.





Proton Motor has been participating in the ECH2A founding process.

Proton Motor is already participating in the EU REVIVE project. REVIVE stands for 'Refuse Vehicle Innovation and Validation in Europe'. The project has been running from the beginning of 2018 and will continue for 4 years until the end of 2021. The objective of REVIVE is to significantly advance the state of development of fuel cell refuse trucks, by integrating fuel cell powertrains into 15 vehicles and deploying them across 8 sites in Europe. It aims to deliver substantial technical progress by integrating fuel cell systems from three suppliers into a mainstream DAF chassis, and developing effective hardware and control strategies to meet highly demanding refuse truck duty cycles.

There is also the EU JIVE project. The JIVE (Joint Initiative for hydrogen Vehicles across Europe) project seeks to deploy 650 new zero emission fuel cell buses and associated refuelling infrastructure across five countries. JIVE is running for six years from January 2017 and is co-funded by a €32 million grant from the FCH JU (Fuel Cells and Hydrogen Joint Undertaking) under the European Union Horizon 2020 framework programme for research and innovation. The project consortium comprises 22 partners from seven countries.

Federal Republic of Germany

On 3 June 2020 Germany´s coalition government presented a €130 billion (£114 billion) fiscal stimulus package worth 4 per cent of German gross domestic product over two years.

This package includes the following elements with regard to the role of hydrogen:

· The 'national fuel cell strategy' will support the hydrogen industry with €7 billion. The goal is to make Germany a global champion in the hydrogen industry and to export it on a global basis. By 2030, Germany plans to install 30 Gigawatt of electrolysers to produce green hydrogen from offshore and onshore alternative energy. Additionally, the German government is seeking to support the shift from fossil energy to hydrogen in all types of industrial processes.

· The automotive (supplier) industry will receive a bonus programme worth €2 billion in the years 2020 and 2021 to invest into R&D for new technology.

· Subsidies worth €1.2 billion for public and private operators of buses and commercial vehicles with alternative power units.

Strategic segments:

Within the context outlined above, the following market segments continue to be identified by Proton Power as key target markets:

Stationary

This market includes applications for the supply of fuel cell based back-up power, e.g. in the areas of emergency or uninterruptible power supply, residential energy autonomy, grid stabilisation and energy storage and BEV supercharging. Specific applications include back up power supply for telecommunication towers, data centre installations, and replacing diesel generators.

Mobility

Hydrogen Battery Hybrid zero emission vehicles. This market includes city buses, airport vehicles, trucks, off-road vehicles and fork lift trucks.

Maritime

Building on our success with the tourist ship in Hamburg, we are receiving further orders within the maritime sector.

Rail

Through the initial operation of the first fuel cell train by Alstom we see increasing interest from this sector and Proton Motor has already received and order out of the rail sector for the development and supply of a fuel cell system with 180 kW installed fuel cell power, which will be delivered to a customer during the 1st quarter of 2021.

Group activity

Due to the successful product launch of the new fourth generation Stack Modules the group has been focusing on selling fuel cell systems with an installed fuel cell power of 30 kW up to 180 kW for mobile, stationary, maritime and rail applications. In addition, quotes for complete emergency power supply systems up to 25 kW electrical power output continue to be offered.

In addition, quotes for complete emergency power supply systems up to 25 kW electrical power output continue to be offered.

With these fourth-generation fuel cell stacks and systems the Group has set up strategic partnerships with electrical drive train manufacturers and industrial partners. The systems can be used in combination with a battery to a hybrid drive train for electric driven light duty vehicles, inner city buses or industrial power supply solutions. We also expect growing demand in the near future from truck manufacturers for municipality maintenance vehicles.

For our partner APEX Energy Teterow GmbH (APEX), the Group has designed a fuel cell package, integrated into a container, with an installed fuel cell power of 180 kW. The system will be used inside a hydrogen power plant. The hydrogen will be produced on-site via renewable energy. The fuel cell package from Proton Motor will convert the hydrogen into electrical energy and feed this into the AC grid. Additionally the heat generated will be used to heat a nearby production hall. The complete container was shipped on-site at the beginning of May 2020. The fuel cell package consists of five parallel fuel cell systems which are controlled by a master controller. A Stack Module 37.5 is integrated into each fuel cell system. Following this initial order, Proton Motor signed a framework agreement with APEX to deliver 10 more of these fuel cell systems in the next 2 years.

Proton Motor has commenced with the development of its next generation, fifth, Stack Module which is now ready for volume production, to be ready for the anticipated world-wide increase in demand for fuel cells. Therefore the automated fuel cell manufacturing line was installed in May 2019, with the objective of increasing manufacturing capacity up to 215 MW fuel cell power per year. With further investment the automated line capacity can be uplifted to 176 GW fuel cell power per year.

Furthermore the Group has designed a multi stack system for power demands beyond 100 kW for larger trucks, trains, ships and larger stationary applications. The first multi stack system, consisting of three Stack Modules 37.5, has been produced and is currently under testing. Two of these systems will be used inside a mobility related application and will be delivered at the beginning of 2021.

I personally thank all our customers who believe in us, our committed employees and our shareholders who have the vision to invest in our mission.

[skinny] 10/8/2020 14:57

A bit more grist to the mill :-

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[reddevil28] 10/8/2020 08:54

No kidding, good news! That has to be major.

[danielinnes74] 10/8/2020 08:38

More good news :)

[skinny] 10/8/2020 07:01

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Proton Motor Power Systems plc (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces that, it has received a first order from Shell New Energies for a fuel cell hybrid system intended to power Shell's own line of portable hydrogen refueling units for buses and trucks.

The first fuel cell system of this type will be used in an off-grid and portable refueling unit, which will be deployed as part of a joint project between Shell and a major European truck manufacturer and is intended to refuel trucks with hydrogen on a test track.

[jpuff] 27/7/2020 13:36

70/30 ? Lol

[danielinnes74] 27/7/2020 09:14

Back up to 75p in 5 days?? 70/40 I reckon :)

[bloomberg2] 25/7/2020 21:20

https://www.barrons.com/articles/nikola-stock-rise-hydrogen-future-role-51595607803

[danielinnes74] 24/7/2020 12:02

Only playing with profit now so makes it fun :))

[danielinnes74] 24/7/2020 12:02

Ditto. Reloaded into SIPP and my trading accounts.. target top splice still at 80p. :)

[uk2day] 24/7/2020 11:18

Ditto!👍

[volsung] 24/7/2020 09:00

Had to buy some at 57.75

[jpuff] 20/7/2020 10:46

And how many additional shares being issued would that equate to at 2p each?

[jpuff] 20/7/2020 10:45

Good question! Does anyone here have the answer otherwise it prudent to assume yes as the answer as regards the Principal

[velvetide] 17/7/2020 13:38

It appears from the announcement on 8th July that £800,000 of loan interest was converted into shares at a conversion rate of 2p resulting in 40 million new shares being issued. Anyone know if there is a similar conversion rate for the principal, i.e., not just the interest ?

[ny boy] 09/7/2020 08:54

Excellent progress since the days in the 20/30p’s, when I was getting bashed by stalker boy!

Stay long for rewards later down the line, will check back in Q4 on further progress

[tenapen] 08/7/2020 08:09

All good :-)

[bloomberg2] 08/7/2020 07:58

Vote of confidence RNS ! Hopefully contract RNS soon

[skinny] 08/7/2020 07:04

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Proton Motor Power Systems plc (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces that Mr Falih Nahab has requested the conversion of part of the interest matured on loans provided by him into 40,000,000 ordinary shares of 1 penny each in Proton ("Ordinary Shares"). The conversion price is 2p per Ordinary Share and the interest converted therefore has a value of £800,000.

Application has been made for the admission to AIM of the 40,000,000 Ordinary Shares resulting from the above loan conversion. Admission to trading on AIM of the new Ordinary Shares is expected to take effect on or around 14 July 2020 ("Admission").

Mr Falih Nahab has indicated that he intends to use any proceeds from a sale of these Ordinary Shares to provide further financing to the Company; further announcements will be made as appropriate.

As a result of this loan conversion, Mr Falih Nahab's interest in the share capital of Proton will comprise 165,015,672 Ordinary Shares held indirectly via his 28 per cent. interest in SFN Cleantech Investment Ltd and 42,464,981 Ordinary Shares held directly by him representing respectively 23.19 per cent. and 5.97 per cent. of the Company's issued share capital.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise 711,617,072 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

[bloomberg2] 07/7/2020 17:14

Hydrogen's Role in Europe's Future Becomes a Little Clearer https://www.bloomberg.com/news/articles/2020-07-07/hydrogen-s-role-in-europe-s-future-becomes-a-little-clearer

[bloomberg2] 07/7/2020 13:44

https://twitter.com/protonmotor/status/1280481847512891393?s=21

[volsung] 07/7/2020 10:49

Dis good. I like

[bloomberg2] 07/7/2020 09:36

Housing association contract of over £6 million could easily be expanded ?That could really take off !!