Three more things every investor needs to know about Loop Energy

Industrials

Three more things every investor needs to know about Loop Energy

When Edison talked to Loop Energy in late April, it was in relatively general  terms – about its business model and strategy to disrupt elements of the emerging hydrogen economy.

Analyst James Magness’s view was that Loop’s plans were ambitious and highlighted that investors would be looking for the business to set – ­and of course meet ­– challenging objectives.

Loop has since announced its Q122 results. So here are three more things Edison believes every investor needs to know about the business.

#1 Orders performed well
Loop reported 24 new purchase orders in Q122. Which means 25% of its year gone, Loop had delivered 40% of its objective to triple purchase orders. These orders were geographically diversified, and another customer entered the Scale Up phase of the business’s Customer Adoption Cycle.

#2 Further orders have been announced
Since the results, Loop has extended its fuel cell supply agreement with British electric and hydrogen truck business Tevva Motors – with a commitment for $12m to be spent.

Announcing the news, the company said that it ‘increases Loop Energy’s confidence that it will meet and exceed its previous purchase order guidance’. Tevva now becomes the first customer to move into the Full Production Phase of Loop’s Customer Adoption Cycle.

#3 Wright’s Law may prove key
Core to Loop’s strategy is the need to scale, bring down the unit cost of each fuel cell and so stimulate more demand at lower price points. The quality of its units will be important in determining overall total cost of ownership for its customers. The company says it is focused on both scale and quality.

With much of Loop’s success riding on the speed at which it can grow its order book and ensure the production line keeps pace, Edison expects that investors will continue to watch developments at Loop Energy closely.

For a deeper understanding of the business and its prospects, read Seven things investors need to know about hydrogen fuel cells and Loop Energy, visit the investor relations pages on its website or contact Edison Group: loop@edisongroup.com

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