dynaCERT, Nordex, Plug Power - Clean solutions for the environment with potential returns

Clean air, clean future: How dynaCERT is redefining the logistics industry

Anyone traveling to Athens these days might feel like they've landed on Mars. According to the BBC, the Greek capital is full of Saharan dust. Combined with the high temperatures of the Mediterranean region, this creates an unhealthy mix, especially for people with respiratory diseases. Air quality has deteriorated in many areas of the country. On Wednesday morning, the world-famous Acropolis monument in Athens was no longer visible due to the dust. Every year, around 5.5 million people worldwide die from air pollution. In Europe alone, air pollution causes around 400,000 premature deaths.

The Canadian company dynaCERT has developed a technology that significantly reduces harmful emissions from diesel engines. If required, retrofitted vehicles can add hydrogen technology to the combustion engine while at the same time reducing costs. The patented and unique electrolyser called HydraGEN™ produces energy from hydrogen and oxygen gases from distilled water and delivers it to the air intake tract of combustion engines. The directly measurable consequences are more power, better torque, lower fuel consumption and lower CO2, CO and nitrogen oxide emissions.

Hydrogen is produced on demand and without H2 storage or pressure, which increases the system's safety. Only a small amount of power is required from the engine's battery. The hydrogen is then fed directly into the combustion engine's air intake tract.

HydraGEN™ technology is suitable for trucks, mining equipment, generators, refrigerated containers and construction machinery. This diversity alone shows the scaling potential of this bridging technology. The electrolyser leads to a reduction in particulate matter, black smoke emissions, diesel exhaust fluid and diesel particulate filters.

In this way, dynaCERT sets an example for a clean environment in a booming industry. According to Precedence Research, logistics is expected to be the fastest-growing industry between 2023 and 2030. The e-commerce boom and rising customer expectations are driving this growth. In the US alone, the market for freight and logistics will grow to USD 1.62 trillion by 2029, while the total value in Europe is estimated at USD 1.26 trillion.

Good figures, stable growth in business: Nordex share on the upswing

The Nordex Group is currently making good headway. In the first quarter of 2024 alone, the Hamburg-based company recorded an order for 338 turbines with a total capacity of 2,086 MW (Q1/2023: 1,021 MW). The average selling price (ASP) in EUR/MW capacity amounted to EUR 0.85 million/MW (Q1/2023: EUR 0.90 million/MW).

The Nordex Group has received orders from eleven countries to date. The largest individual markets were Germany, South Africa and Lithuania. "With an order volume of more than 2 GW and stable prices, we are building on the success of the previous quarters and making a good start to the new year. I am very pleased that we have won several major orders in different regions, which shows that our turbines are in demand both within Europe and beyond," says José Luis Blanco, CEO of the Nordex Group.

The fundamental data are also impressive: Operating cash flow rose to EUR 350.1 million from EUR 29.3 million in the last quarter. Analysts of Deutsche Bank, Metzler, Alpha Value and Jefferies have confirmed their "Buy" rating for Nordex with a price target of EUR 19 after a very strong order intake in the first quarter. Constantin Hesse of Jefferies explains that orders for Nordex have more than doubled compared to the same quarter last year, which is well above investors' expectations. Hesse sees this as a solid foundation for 2025 and expects the new findings to continue to have a positive impact on sentiment.

Nordex generated consolidated sales of around EUR 6.5 billion in 2023. The Company currently employs over 10,000 people. The Group's production network includes plants in Germany, Spain, Brazil, India and Mexico. The product portfolio focuses on onshore turbines in the 4 to 6 MW+ classes, which have been specially developed for countries with limited space and regions with limited grid capacity.

Despite investor class action lawsuit: Plug Power focuses on expansion and capacity increase

A key part of Plug Power's business is its green hydrogen production facilities, which the Company operates at several locations in the US and Europe. These plants are in various stages of development, whether in the construction phase or the implementation phase. The Company has now reached rated capacity at its US hydrogen plants in Georgia and Tennessee. The hydrogen plant in Georgia has been running at a stable rate of 15 tons per day since the beginning of April. The plant in Tennessee is running at a nominal capacity of 10 tons per day (TPD). This means the two plants produce a total capacity of 25 TPD of liquid hydrogen, which covers around 50% of its customers' demand for green hydrogen.

Another plant in Louisiana, as a joint venture with Olin Corporation, is expected to add 15 TPD of liquid green hydrogen to Plug Power's North American network by the end of the third quarter of 2024.

"Reaching the rated capacity of our Georgia and Tennessee plants is an important step in reducing costs and improving margins in our fuel business," said CEO Andy Marsh. Plug may now have to build up reserves, as a class action lawsuit has been filed against Plug in New York by a law firm Pomerantz LLP specializing in investor rights. The lawsuit, filed in the United States District Court for the Northern District of New York under case number '24-cv-00406', is on behalf of all investors who purchased Plug shares between May 9, 2023 and January 16, 2024.

The Company struggled to deliver its hydrogen plant construction plans on budget and on schedule during this period and, therefore, had to tap additional sources of funding to finance its ventures. This worked out more poorly than well. On November 9, 2023, Plug announced its third quarter 2023 results, including third quarter GAAP earnings per share of USD -0.47, missing consensus estimates by USD 0.16. It also reported revenue of USD 198.71 million for the third quarter, which missed consensus estimates by USD 23.02 million. In explaining these results, Plug had to admit that its "overall financial performance for 2023 was negatively impacted by unprecedented supply issues in the hydrogen network in North America", including "severe hydrogen shortages".

This statement, along with the missed double-digit million figure, led to a very strong downgrade by renowned analysts. Plug Power's share price fell by 40.47% and closed at USD 3.53 per share on November 10, 2023. The lawsuit alleges that Plug Power made materially false and misleading statements about the Company's business, operations and prospects during the period covered by the lawsuit. Investors should always contrast the benevolent words of the CEO with the factual financial figures.

With its HydraGEN™ technology, dynaCERT offers a promising solution for reducing harmful emissions from combustion engines in a wide range of industries. The patented innovation enables effective emission reduction in diesel engines and an improvement in performance and fuel efficiency. Investors should keep an eye on the Company due to its innovative approach and its potential for growth and environmental impact. Wind turbine manufacturer Nordex records impressive order performance and stable prices in the first quarter of 2024. The strong order situation and positive feedback from analysts give the share a buy signal. Despite the milestone of reaching rated capacity at the Georgia and Tennessee hydrogen plants, Plug Power is facing an investor class action lawsuit for allegedly misleading statements about the business last year. The lawsuit seeks restitution for all investors who purchased Plug shares between May 2023 and January 2024. The Company's Q3 2023 results missed consensus estimates by a double-digit million amount, resulting in a severe downgrade by renowned analysts and a dramatic 40.47% drop in the share price. The high scalability potential of dynaCERT compared to Nordex and Plug Power should be clearly evident to investors.