Close menu




February 7th, 2024 | 07:15 CET

Kraken Energy, RWE, Plug Power - What does the energy of the future look like?

  • Energy
  • renewableenergies
  • Hydrogen
Photo credits: pixabay.com

In a world that is increasingly facing the challenges of climate change and limited resources, the question of future energy supply is coming more and more into focus. While fossil fuels are slowly but surely losing their place as the primary energy source, alternative technologies are in the spotlight. Nuclear power, hydrogen and renewable energies such as solar and wind are key players in the quest for a sustainable energy future. The global landscape reflects an increased expansion of nuclear power plants and renewable energies. Hydrogen could benefit from the latter. We take a look at one company from each sector.

time to read: 5 minutes | Author: Armin Schulz
ISIN: KRAKEN ENERGY CORP | CA50075X1024 , RWE AG INH O.N. | DE0007037129 , PLUG POWER INC. DL-_01 | US72919P2020

Table of contents:


    Kraken Energy - 4 promising uranium properties

    Almost all major industrialized countries are building new nuclear power plants. Accordingly, the demand for uranium will increase by around 160% over the next few decades. Already in the next 5 to 10 years, there could be a worldwide deficit of 150 to 200 million pounds of uranium per year. This will particularly affect the US, which needs more than 35 million pounds of uranium annually for its current infrastructure. Kraken Energy is a company focused on uranium exploration and development in the US, with projects in Nevada and Utah. The Company has 4 high-grade uranium deposits in the US, 3 in Nevada and 1 in Utah.

    These properties, including former production sites dating back to the 1950s, provide a unique opportunity to access reserves and modern infrastructure. Of particular note are the high-grade uranium deposits, which range up to 0.4%. Other projects are operated with grades of 0.02%. In addition, the properties have economic potential, as other commodities such as gold, silver, copper, nickel, vanadium, diamonds, and molybdenum have been found. The Company's main properties, Harts Point in Utah and Apex in Nevada, are potential hubs for a Hub and Spoke mining model for domestic uranium production in the US.

    A drilling program is scheduled to begin at Harts Point in the coming weeks. The Apex project is currently awaiting a drilling permit, which is expected to be issued in Q2. A drilling program will then be carried out to conduct a mineral resource estimation in accordance with the NI 43-101 standard**. This standard did not exist when the historical work was halted, but the drilling data shows grades of 0.23% to 1.33%. In addition to the interesting assets, the Company boasts an experienced team, which itself holds 22% of the Company and has already been involved in several corporate sales. The shares are currently trading at CAD 0.20 and placing it at the lower end of its sideways phase.

    RWE - Interest in hydrogen-ready gas-fired power plants

    In the midst of a global energy transition, RWE AG has undergone a business transformation. The former flagship company in the nuclear and coal industry has successfully adapted to the new market requirements. After shutting down all nuclear power plants in Germany and planning to phase out coal, RWE has made great efforts to turn more towards renewables. These steps have led to a significant change in RWE's business. Through targeted investments and acquisitions, RWE has achieved a leading position in this fast-growing sector.

    Today, RWE possesses a broad portfolio of renewable energies. The Company operates offshore and onshore wind farms as well as solar plants in Europe and the US. With over 9 gigawatts of installed capacity, RWE is one of the world's largest producers of renewable electricity. It was recently announced that the Company also intends to participate in tenders for the construction of hydrogen-ready gas-fired power plants. The German government aims to have power plants with a capacity of 10 gigawatts connected to the grid by 2030. Electricity producers, however, want to have the details as quickly as possible to plan accordingly.

    RWE is expected to achieve an adjusted net result of EUR 4.5 billion in 2023, representing a significant increase compared to the previous year. Adjusted EBITDA for the RWE Group is expected to be EUR 8.4 billion, above expectations. The majority of profits will come from wind, solar and other forms of renewable energy. Shareholders are to receive a dividend of EUR 1 for the past year. In recent days, there has been an increase in insider buying by the Company's executive bodies. At the current share price of EUR 32.98, the dividend yield is around 3%.

    Register now for the 10th International Investment Forum

    Plug Power - Positive news at last

    Green hydrogen is produced from renewable energies, so the expansion of wind and solar power is important for the production of the new climate-friendly fuel. Plug Power has made a name for itself in the field of hydrogen. The Company started out with a fuel cell but now covers the entire value chain. Due to its rapid growth, the Company quickly used its financial cushion. After management warned that it might not be able to maintain business operations in 12 months, the share price plummeted. The growth prospects in the hydrogen sector are still good.

    Recently, however, there have been increasing signs that the Company could still achieve a turnaround in time. On January 23, it was announced that Plug Power had started producing liquid green hydrogen at its plant in Georgia, which is the largest of its kind in the US. The plant uses 8 PEM electrolysers to split water into hydrogen and oxygen. It produces 15 tons of liquid hydrogen daily, enough to power approximately 15,000 forklifts and is delivered to customers like Amazon. After many delays in the construction of the plants, this is a real milestone.

    On February 1, for the first time, customer locations of Walmart, Amazon and Home Depot were supplied with liquid green hydrogen from Georgia. Just one day later, Plug Power was awarded the contract to supply a Basic Engineering and Design Package for a 500-megawatt electrolyser project in Europe. Prior to this, there had been no major orders for a long time. Following these announcements, the stock surged by over 100%. The share is currently trading at USD 4.35. Although it is prudent to wait and see how the financial situation looks after the next quarterly earnings, there are positive signs of life after a long, quiet period.


    Even though Germany has renounced nuclear power, it is gaining ground worldwide because it produces no CO2 and positively impacts the climate targets of countries. The demand for uranium is expected to increase, which will positively impact uranium companies such as Kraken Energy. With the upcoming drilling programs and corresponding results, the share has potential. RWE has transformed its business towards renewable energies and has done well so far. The preliminary annual results prove this. Plug Power has recently sent out signs of life, but the Company is not yet out of the woods. Hydrogen has a lot of potential, but ultimately, money has to be made. Caution is therefore advised here.


    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.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    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.

    About the author



    Related comments:

    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.

    Read

    Commented by Fabian Lorenz on February 20th, 2024 | 08:00 CET

    Sell Varta shares? Nel and Altech Advanced Materials with new opportunities

    • Technology
    • Batteries
    • renewableenergies

    The bad news for Varta seems to be unending. First, a cyber attack paralyzed the Company. Now, analysts are lowering their thumbs and recommending selling the share. Estimates for the years 2024 and 2025 have been lowered. As a result, Altech Advanced is increasingly becoming the German battery hopeful. Even though Altech's share price has declined significantly in recent months, the Company is on track operationally. The current year will be exciting. Things also remain exciting for hydrogen shares. While Nel and Plug Power & Co. still need to prove the future viability of their business models, they are receiving billions in support.

    Read

    Commented by Armin Schulz on February 20th, 2024 | 07:45 CET

    ThyssenKrupp Nucera, dynaCERT, Plug Power - Hydrogen Stocks: Buy or Wait?

    • Hydrogen
    • Electromobility
    • greenhydrogen

    In light of global efforts to reduce CO2 emissions, hydrogen is coming into focus as a promising alternative in the transportation sector. The quick refueling times and greater ranges of hydrogen are particularly enticing, potentially solving the challenges of electromobility. Fleet operators must also become active, especially in response to the savings demanded by the government. Despite the clear potential for more sustainable mobility, hydrogen companies currently find themselves in a challenging situation on the stock markets, plagued by market uncertainties and the challenges of a nascent technology. Today, we look at three companies whose business is based on hydrogen.

    Read