November 29th, 2021 | 10:41 CET
Nel ASA, dynaCERT, BYD - Attractive opportunities after the crash
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Ready for the mass market
One of the stocks that has been in correction mode not just since the South African Corona variant broke out is dynaCERT. Since the peak in February 2020 at EUR 0.93, the share price has only known the downward direction, apart from a few significant countermovements. At EUR 0.17, the price is only minimally above its low for the year. The reasons for this are clear. The market is waiting for the roll-out of Carbon Emission Reduction Technology, which has been developed and patented worldwide for 17 years. It is aimed at reducing emissions and improving fuel efficiency.
The resulting HydraGEN product is used in internal combustion engines, currently focusing on heavy vehicles. Here, the electrolysis unit produces water and oxygen, optimizing fuel combustion, resulting in both a reduction in fuel consumption and emissions of up to 19%. HydraGEN is compatible with many types and sizes of diesel engines used in passenger cars, refrigerated trucks, off-road construction, power generation, mining and forestry equipment, ships and railroad locomotives.
In addition, HydraLytica, intelligent software that records and analyzes consumption, has been developed. The fleet companies can convert the CO2 saved into corresponding certificates and sell them. In this context, the potential for the next few years is virtually inexhaustible due to the CO2 reduction targets set at around 100 million vehicles. As a result, sales have been rolled out globally to a total of 38 countries.
At least a small start was the implementation of the technology by Sofina Foods, one of Canada's leading manufacturers of primary and processed protein products for retail and foodservice and international markets. They are expanding their dynaCERT system from four to now twenty units.
Significantly bounced back
The stock market star of 2020, the Norwegian hydrogen specialist Nel ASA, celebrated a comeback in recent weeks. After the year's lows at EUR 1.20, the share rose to EUR 2.06 but stuck here several times at the striking resistance of the July high. Since then, the Norwegian shares have been in reverse gear and are in a corridor between EUR 1.60 and EUR 1.80. A slide would mean even more pressure on the share.
An order for an electrolyzer system to accelerate fossil-free steel production recently came in from Sweden. The order, received by the subsidiary Nel Hydrogen Electrolyser AS, covers an alkaline water electrolyzer with a capacity of 20 MW. The order, worth around EUR 11 million, was placed by Ovako, a producer of structural steel, which intends to install the electrolyzer at the company's plant in Hofors, Sweden. For Nel Asa CEO Jon André Løkke, the order is a confirmation of the importance of green hydrogen: "There is enormous potential for reducing CO2 emissions from steel heating processes by using green hydrogen. There are numerous similar sites with equally great potential for decarbonization throughout Europe and the rest of the world."
Correction after highs
Even the shares of Chinese electric carmaker BYD, which have been running like clockwork for months, were unable to escape the South African Corona variant, losing more than 5% in the course of trading. In the process, the value closed an upward gap torn in the past week at EUR 34.20. The chart already finds support in the area around EUR 34.00. The growth prospects continue to be dazzling, and due to a positive overall market, BYD should also start heading north again.
On the news level, a major order for the delivery of electric buses to Barcelona could be published. In this context, 25 electric buses of the latest generation are to be put into operation in the Catalan capital between 2022 and 2024 by the transport company Transportes Metropolitanos de Barcelona SA.
Currently, a new Corona variant is weighing on the markets in the short term. In the long term, however, renewable energy stocks should perform due to the new climate targets. There is potential for dynaCERT in the event of a successful roll-out, and BYD should resume its upward path if the markets are positive.
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