Fuel-Cell Maker Advent Technologies Agrees to SPAC Merger
Hydrogen fuel cells might be the smarter play over electric batteries.
Advent Technologies Inc. to Combine With AMCI Acquisition Corp., Creating a Leading Next-Generation Fuel Cell Technology Company.
- Advent technologies and AMCI are combining to advance the development and manufacturing of Advent's platform technology that is based on high-temperature proton exchange membranes. Hydrogen fuel cells produce electricity by combining hydrogen and oxygen atoms. The hydrogen reacts with oxygen across an electrochemical cell similar to that of a battery to produce electricity, water, and small amounts of heat. Thanks, Google.
- Transaction is valued at $358 million, combined merger market cap is $550 million.
- Electric vehicle sector hype rotates towards powering the damn things, batteries!
One of the biggest problems we as humans must solve is maintaining the health of the Earth. Many are familiar with wind and solar energy as a means to replace fossil fuel emission, but one form of energy to keep an eye on is hydrogen fuel cells. You wanna save the planet, right? Good. If you're not familiar with hydrogen and fuel cell companies, let alone the concept of using it to create a healthier world, then sit down and get comfortable.
Hydrogen is the most abundant chemical substance in the universe, constituting roughly 75% of all baryonic mass. Hydrogen can be produced from diverse, domestic resources including fossil fuels, biomass, and water electrolysis with wind, solar, or grid electricity. The environmental impact and energy efficiency of hydrogen depend on how it is produced. Enter: fuel cells. A fuel cell is an electrochemical cell that converts the chemical energy of a fuel and an oxidizing agent into electricity through a pair of redox reactions. Basically, a fuel cell combines hydrogen and oxygen to produce electricity, heat, and water. Fuel cells are often compared to batteries in the sense that both convert the energy produced by a chemical reaction into usable electric power.
Like the outdated gas guzzlers on the road today, fuel cell electric cars can have a driving range of more than 300 miles on one tank of hydrogen fuel. They can juice up in just a few minutes, getting you where you want to go faster. Since the “engine” (i.e., fuel cell) has no moving parts, you’ll never need to change the oil. But because a fuel cell is more than twice as efficient as an internal combustion engine, a fuel cell car travels farther on that tank of hydrogen than a traditional car would on gasoline. This means you only need about half the amount of hydrogen, with double the fuel economy. So now that you read a little about hydrogen fuel, here's why dollar signs should be in your eyes.
AMCI and Advent plan to unlock the hydrogen economy by creating a low-cost, fuel-flexible, and resilient fuel cell technology - having your product cost you little is always a good way to raise shareholder's eyebrows. Advent is developing high-temperature polymer electrolyte membranes (PEM), conducting plastics that can withstand over 160 degrees celsius. PEM fuel cells and electrolysers (the process of using electricity to split water into hydrogen) and oxygen offer efficient use and production of hydrogen for emission-free transport and sustainable energy systems. Advent is developing components for high-growth energy markets that include transportation, off-grid, aviation, and the hydrogen economy. Boomshakalaka.
This is no damn Trevor Milton Nikola crap scam. Advent has a unique market position in the fuel cell value chain, they own the intellectual property around not just the design of the fuel cell system and the critical component that they manufacture, but also around the core materials that give that component its characteristics. Advent is BOTH technology and a manufacturing company: their expertise in electrochemistry, materials, and manufacturing enables them to be integrated across the whole value chain, embedded into their customers.
Advent CEO Vasilis Gregiriou talks SPACs and a zero-emissions future in an interview:
In terms of the technology itself, because our MEAs (Midwest Energy Association) can utilize existing and next generation hydrogen bearing fuels, we can effectively bring fuel cell technology into every part of the globe. The issue with only being able to utilize pure hydrogen is the massive cost of infrastructure that is needed, with some estimates as much as $15 trillion globally. We solve that problem.
Advent's leading position with partners like the Department of Energy, Los Alamos, Brookhaven, and BASF gives them a very competitive position in the development value chain. Entering the public markets will allow them to continuously grow relationships and form new ones along with other key OEMs that are seeing their business models rapidly evolve to reduce their carbon footprint and utilize greener fuels. They have the momentum to grow their business in a booming sector. First, Advent’s MEA (Midwest Energy Association) products are already being used and tested for use by top-tier customers in the USA, China, India, Germany, and France, among other key markets. Secondly, their technology’s initial applications were in the defense and aerospace industries, but after seeing the mammoth-sized opportunity, they are scaling-up based on current and future customers’ needs in industries such as automotive, aviation, marine, and off-grid power. And why the hell wouldn't they? If I'm any more bullish my girlfriend will need to taunt me by waving a red matador flag.
Let's wrap this up
- They provide low-cost, fuel-flexible, and resilient tech. Unlike traditional fuel cells that require a hydrogen infrastructure, Advent’s fuel cells can work with lower-carbon fuels available today (methanol, ethanol, natural gas) and zero-carbon liquid fuels available soon. Advent can deliver the promise of the hydrogen economy while limiting the cost of hydrogen infrastructure.
- Developing and manufacturing the critical components for high growth markets.
- 30 billion dollar industry. Advent Revenue is expected to be around 100 million dollars per GW. Over a billion dollars in estimated revenue.
- CEO said, "we do not anticipate entering long-term capital or debt commitments in the near future."
Almost every industry-leading country in the world is announcing multi-billion dollar hydrogen plans this year. Hydrogen, electrifying vehicles, and SPAC's are getting hot again. This has a recipe for success written all over it. I'm long, hard and bullish.
**Not a financial advisor. Articles are opinion only.
Hounder Media Newsletter
Join the newsletter to receive the latest updates in your inbox.