(AOF) – Elogen, a GTT group company, has signed a new contract with Valmax Technology Corporation (system integrator of energy solutions in the hydrogen sector) for the design and manufacture of a proton exchange membrane electrolyzer (PEM) with a power of 2.5 MW. This is the second contract signed between Elogen and Valmax as part of the collaboration agreement signed in May 2022 for the supply of electrolysers to South Korea intended for the production of green hydrogen.
The electrolyser, with a production capacity of up to 1 ton of hydrogen per day, is an integral part of a mobility project located in Buan, North Jeolla Province.
Valmax will assemble the Balance-of-Plant (BoP) of the electrolyzer on site, which Elogen will deliver to Buan in 2025.
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Key points
– World leader in the design of cryogenic membrane containment systems used for the storage and naval transport of LNG or liquefied natural gas;
– Turnover of €307 million, 91% generated in the construction of stationary tanks or ships and 17% in electrolysers in the Elogen division;
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Revenues drawn from 9/10ths of royalties, hence margins above 50%
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– Business model for capitalizing on the growth of the natural gas markets (25% of energy consumption expected for 2040) and LNG fuel (“Global Sulfur Cap”, incentive for the propulsion of commercial ships by LNG) and expansion of the service offering through acquisitions;
– Capital held 21.45% by Engie, Philippe Berterottière being CEO of the 9-member board of directors;
– Very solid balance sheet free of debt with cash of €213 million.
Challenges
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Response strategy, particularly through digital innovation, to a maritime sector that emits less carbon emissions
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– Innovation strategy with a research & development budget of €20 million, aimed at strengthening gas management technologies, improving Mark Systems and NO 96 solutions, reducing carbon impacts via artificial intelligence and Smart Shipping and participate in the growth of the hydrogen market;
– 1st French ETI in terms of the number of patent filings, 8/10ths of the order book coming from technologies offered for less than 3 years,
– certification of technologies intended for GL fuel;
– partnership with the Marseille incubator Zebox, specialized in maritime transport and new start-up financing structure, with €25 million;
– Environmental strategy of net zero ambition 2025 for the company’s carbon emissions, the approach of which will be formalized and validated by the SBTi in 2023;
– Rapid development of the Elogen subsidiary: order intake up 150%, driven by partnerships in the design of hydrogen generators and electrolyzers and public support for the construction of the Vendôme gigafactory;
– Record order book: 274 units including 70 units for LNG fuel ensuring visibility of €1.5 billion between now and 2027 to 2029.
Challenges
– Russian-Ukrainian conflict: suspension of the Zvezda shipyard (15 ice-breaking LNG tankers and 3 GBS), maintenance of orders in progress in Asian shipyards (6 ice-breaking LNG tankers and 2 FS) for Russian Arctic projects, i.e. €24 million revenue by 2024, and for the Arctic LNG2 project (8 conventional LNG carriers:
– Other geopolitical risks: Qatar, Malaysia and Indonesia which account for more than half of the world’s LNG liquefaction supply;
– Waiting for orders in the transport of liquid hydrogen and 3-tank LNG carriers;
– After a decline in sales, 2023 objectives of a significant increase in turnover, between €385 and €430 million, and in operating income, from €190 to €235 million, and a dividend of 80% of net income ;
– 2022 dividend stable at €3.1, including deposit of €1.55 paid in December.
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