Ceres Power update – raising buy-up-to price
9th January 2020 |
The Consumer Electronics Show, which is currently being held in Las Vegas, highlights how on point investing in hydrogen is. A news report by one of the companies exhibiting cites a white paper released by Deloitte estimates:
Although FCEVs are currently more expensive to run per 100 kilometers (km) than BEVs and ICE commercial vehicles, they are set to become much cheaper as manufacturing technology matures, economies of scale improve, hydrogen fuel costs decline and infrastructure develops. Indeed, the white paper conservatively estimates the Total Cost of Ownership (TCO) for commercial hydrogen vehicles will fall by more than 50% in the next 10 years.
The simple fact of the matter is natural gas is dirt cheap right now and it is inevitable new uses will be found for it. Producing hydrogen is one of the big ones.
Ceres Power is a leader in the sector and has benefited from an impressive breakout of late. My buy-up-to price is now below the current prevailing price in the market and I believe the price is going higher from here. Therefore, I am raising the buy-up-to price to 285p.
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor
