Enormous growth ahead due to hunger for electricity: CHAR Technologies, Siemens Energy, and Nel – Who is in the lead?

CHAR Technologies – Growth on multiple levels

The cleantech company offers a promising approach and addresses several structural challenges at once: waste recycling, clean energy production, and the decarbonization of heavy industry. The Canadian company is on the verge of becoming a production company, which should have a significant positive impact on its share price performance this year.

At the heart of the business model is the Company's proprietary high-temperature pyrolysis (HTP) technology. This technology is used to process non-marketable wood and organic waste from forestry and other types of biomass. The result is two products: renewable gas and solid biocarbon. The approach thus combines waste management, energy production, and climate protection in an industrially applicable process - waste is kept out of landfills, emissions are reduced, and energy-intensive industries are provided with a low-carbon alternative to coal and natural gas.

The first commercial plant in Thorold, Canada, is currently in the commissioning phase – an important milestone. Starting this month, the plant will produce syngas and biochar with an annual capacity of around 5,000 tons. The site uses forestry residues and markets its products to industrial customers and gas networks.

To minimize risk, the Company consistently relies on partnerships along the entire value chain. Industrial partners include ArcelorMittal and its Canadian subsidiary Dofasco. CHAR also works with forestry-related organizations. The modular plant concept allows for decentralized expansion, reduces transport costs, and strengthens the regional economy.

In parallel with Thorold, the Company is pushing ahead with other projects. The project at Lake Nipigon is well advanced, with biomass already being collected and construction scheduled to start this year. In Baltimore, a six-month demonstration project for the destruction of PFAS pollutants in sewage sludge has also been successfully completed. The data is currently being evaluated. In view of the increasing global regulation of so-called "forever chemicals," this could develop into an attractive business in a regulatory-driven market.

Close cooperation with the BMI Group, an infrastructure and industry specialist, is also strategically important. In addition to jointly financing the Thorold plant, the partners are examining further projects, including at the former Espanola paper site. The Company is receiving political tailwind from Canada's decarbonization strategy, which aims to achieve climate neutrality by 2050. With a share price of CAD 0.33 and a valuation of CAD 44 million, the stock is an exciting story. Growth is emerging on several levels.

Siemens Energy – Benefiting from strong demand trends

The Germans are an important enabler of the energy transition and are benefiting from the structural trend of rising electricity demand, driven in part by e-mobility and the expansion of data centers. The Company's business is booming, which is particularly noticeable in the gas turbine and grid technology business areas.

At the end of last year, the group significantly raised its medium-term targets. Analysts were particularly impressed by the outlook that the operating margin will increase to 14 to 16%. The majority of experts continue to rate the stock as a "Buy". JPMorgan is particularly optimistic, with a target price of EUR 160.

The Company is currently implementing a share buyback program with a volume of EUR 6 billion. Projected free cash flow is expected to give the Company further flexibility for a shareholder-friendly distribution policy. The shares were among the top performers on the DAX in 2025. The stock, which is currently trading near its all-time high, should continue to be a good investment this year.

Nel – Step by step

Like other stocks in the sector, the Norwegian hydrogen pioneer has experienced ups and downs in recent years. Like other competitors, the Company is still suffering from delayed investment decisions by the industry. However, Nel has established itself as a reliable technology partner for large projects.

Although analysts estimate that the Company will not be profitable for several years, its capital reserves of the equivalent of EUR 150 million should be sufficient until then. In addition, the European framework conditions are gradually improving, including with regard to subsidies and infrastructure programs.

The management board's decision to approve the expansion of production at the Herøya site after seven years of development work is strategically important. The new "pressurized alkaline" technology, which uses a modular container design, is intended to achieve cost leadership.

CHAR Technologies is an innovative cleantech company addressing several structural challenges simultaneously. The ramp-up of its first commercial plant is now generating initial revenues, while the underlying technology is scalable and suitable for international deployment. The Company is currently valued at a manageable CAD 44 million. Siemens Energy is benefiting strongly from sustained demand trends and, according to analysts, continues to be rated a "Buy". Nel is taking important steps toward long-term profitability and is increasingly benefiting from the improving European framework conditions.