December 4th, 2024 | 07:00 CET
JinkoSolar, Myriad Uranium, Plug Power – How the energy crisis can be solved
During the recent dark doldrums in Germany at the beginning of November 2024, the challenge of driving forward the energy transition exclusively with renewable sources once again became clear. Days with minimal wind and solar power production forced the country to rely heavily on fossil fuel power plants and expensive electricity imports. At the same time, energy demand is growing rapidly due to factors like electric mobility, digitalization, and industrial transformation. Given these dynamics, the debate over CO2-neutral, baseload-capable nuclear power plants is coming back into focus. Unlike wind and solar energy, these nuclear power plants provide reliable electricity and could make a decisive contribution to ensuring energy supply while meeting climate targets. We look at three companies and analyze what it takes to make these technologies a success.
time to read: 5 minutes
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Author:
Armin Schulz
ISIN:
JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , MYRIAD URANIUM CORP | CA62857Y1097 , PLUG POWER INC. DL-_01 | US72919P2020
Table of contents:
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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JinkoSolar – Lack of energy storage
Solar energy is a sustainable energy source with great potential, but its development is limited by technical challenges such as intermittency, energy storage, and grid integration. To ensure long-term success, innovative solutions are needed, such as those JinkoSolar delivers for solar panels. Advances in energy storage, for example, in the form of modern batteries or hydrogen storage, enable the capture of excess electricity for later use. At the same time, smart grids help to balance out fluctuations and ensure grid stability. The combination of efficient storage technologies and smart infrastructure paves the way for the widespread use of this renewable energy source.
Chinese solar company JinkoSolar has presented mixed results in Q3 2024. Revenues reached RMB 24.51 billion (approximately USD 3.49 billion), a slight increase of 1.9% over the previous quarter but a significant decrease of 23% year-over-year. The reason for the decline was falling solar module selling prices compared to the previous year. Gross profit increased quarter-on-quarter to RMB 3.86 billion (USD 549.4 million) and exceeded the previous quarter's figure by 44% but remained significantly below the previous year's result. On a positive note, there was a significant improvement in operating income, which swung back into the black from a loss in the previous quarter.
The re-election of Donald Trump as US President is causing unrest in the solar and renewable energy industry. In particular, his announcement to repeal the Inflation Reduction Act (IRA) calls into question the future of tax incentives for clean energy. This measure was considered a key driver for investments in the US market and could be reversed after Republicans gained a majority in Congress. The appointment of Lee Zeldin as head of the US Environmental Protection Agency (EPA) reinforces these concerns, as Zeldin is known for deregulation policies. In addition, attention is focusing on a possible revision of the subsidy structure, particularly to restrict the use of Chinese companies. The share, which came under pressure after the US election, is currently rebounding and is now trading at USD 24.70.
Myriad Uranium – Successful drilling at Copper Mountain
Nuclear power plays a central role in modern energy supply, combining low CO2 emissions and reliable baseload supply. It provides clean and steady energy regardless of weather conditions and requires little space compared to renewable energies such as wind or solar farms. In this exciting market, Myriad Uranium is an emerging company specializing in the exploration of uranium deposits. With a 75% interest in the Copper Mountain Uranium Project in Wyoming, USA, Myriad has access to historic uranium deposits that were extensively explored in the 1970s. This opens up significant opportunities for future development.
Recent drilling results from the completed drill program at the Copper Mountain project in Wyoming are strengthening confidence in the high-level uranium mineralization of the historic Canning deposit. 34 drill holes to date have encountered 30 intervals averaging over 1,000 ppm radioactive equivalent U3O8 (eU3O8), including peak values of up to 8,060 ppm. Of particular note is the fact that several high-grade discoveries occurred within a strike length of 750 m. The results were obtained using spectral gamma rays – a method that reliably confirms historical analyses by Union Pacific. In addition, geologists discovered uranium mineralization below the previous depth limit of 600 feet for the first time, significantly expanding the exploration potential of the deposit.
Myriad plans to further investigate the depth potential and carry out an extensive drilling program in 2025. With a forecast of several million pounds of uranium, the exploration to date provides a solid foundation for developing a world-class project. In addition to the Canning deposit, the project area includes six other historic uranium deposits, including Arrowhead and Bonanza, which have previously been mined. The Company has announced a private placement of CAD 2.5 million to finance further exploration work. In addition, Simon Clarke has been appointed Chairman of the Board. The stock reacted positively to the drill results and is currently trading at CAD 0.445.
Plug Power – Challenges and opportunities in the hydrogen market
For hydrogen to play a key role in the global energy transition, progress is needed in three areas: lower production costs, expanded infrastructure, and greater demand. The cost of producing green hydrogen could fall significantly by 2030 due to technological advances and economies of scale, thus strengthening its competitiveness. This is where Plug Power offers innovation potential. With a broad range of electrolysers, fuel cell solutions, and a growing production capacity, the Company sees itself as a pioneer in the hydrogen sector. Plug Power aims to establish a complete hydrogen value chain from production to application. However, recent reports show that the road ahead remains bumpy.
Plug Power's Q3 figures disappointed investors: revenue fell by 12.6% year-on-year to USD 173.7 million, clearly missing expectations. As a result, the Company had to lower its annual guidance to USD 700-800 million. Despite revenue growth in the electrolyser segment, margin pressure and delays in the project business remain tangible challenges. In addition, cash consumption is high, which Plug aims to reduce through efficiency improvements and inventory optimization. A return to positive margins remains the primary goal, but analysts remain skeptical as to whether the long-term growth plans can be realized without further capital requirements.
The political landscape is creating additional uncertainties. Changes by the new US administration under Donald Trump could worsen the funding conditions for hydrogen. Tax breaks, such as those introduced by the Inflation Reduction Act, could be withdrawn, which would affect cost competitiveness. Globally, the market breakthrough for green hydrogen projects remains hesitant. Delayed investment decisions and sluggish demand are hindering progress. Nevertheless, Plug Power sees opportunities for long-term business growth in partnerships with companies such as Amazon, BP, and Iberdrola. The share price has fallen by more than 50% since the beginning of the year and is currently trading at USD 2.30.
The energy transition requires innovative approaches to combine the security of supply and climate targets. JinkoSolar focuses on the further development of solar modules but is limited as long as effective storage solutions are missing. Myriad Uranium shows the importance of uranium as a stable energy supplier and convinces with excellent drilling results at its Copper Mountain project. Plug Power is driving the hydrogen market forward, but is facing financial and operational challenges. The combination of renewable energies and modern nuclear technology could help solve the energy crisis and ensure long-term stability.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
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