Nel ASA, dynaCERT, Daimler Truck – Decarbonization in focus

Nel ASA – Election victory and implications for the hydrogen market

Donald Trump's recent victory in the US presidential election has sent shockwaves through financial markets and put particular pressure on renewable energy companies. Trump, a well-known proponent of fossil fuels, aims to expand oil production and loosen environmental regulations. These policies could lead to a reduction in government support for green energy and affect existing initiatives such as the Inflation Reduction Act. The hydrogen market, which relies on political support, faces significant challenges in the face of this uncertainty, as cuts in funding could be expected.

In Q3, Nel ASA reported revenue growth of 21% to NOK 366 million, while EBITDA remained negative. This was mainly due to higher sales in the alkaline electrolyser segment, while the PEM electrolyser segment faced a 40% decline in sales. Order intake decreased by 52%, which the Company attributes to delayed investment decisions on key customer projects. These results underscore the volatility in the hydrogen industry's project business, with Nel hoping to see stabilization in the next quarter and emphasizing that there is no need to raise additional capital in the short term.

Nel ASA is optimistic about the future, as decarbonization projects in industries such as steel and chemicals are expected to drive development. The EU granted Nel a EUR 135 million subsidy to industrialize its new pressurized alkaline electrolyser technology. This support offers a significant opportunity to scale up and reduce the cost of hydrogen products. Despite the prevailing market uncertainties, Nel is relying on its strong financial position and innovative technologies to meet long-term demand for sustainably produced hydrogen solutions. The share has been under pressure since the end of May and is trading at NOK 3.531.

dynaCERT – Decarbonization of diesel fleets

In the current discussion about decarbonization, electric and hydrogen vehicles are often the focus of attention. However, despite technological progress, the conversion of global vehicle fleets is proving to be complex and time-consuming. This is where dynaCERT comes in with its HydraGEN™ technology, which transforms conventional combustion engines. This solution enables an immediate reduction in CO₂ emissions and offers companies a cost-effective way to become more sustainable without having to invest in new vehicle fleets. With over one billion vehicles on the road worldwide, dynaCERT's retrofit offers a pragmatic and rapid solution for environmentally conscious fleet operators.

A significant turn for dynaCERT is the certification by the internationally recognized organization Verra. This official confirmation not only acknowledges the Company's effective technology but also opens the door to the carbon credit market. These credits provide an economic incentive for companies because they are tradable and provide an additional source of revenue. Verra certification makes dynaCERT an attractive partner for companies seeking to efficiently achieve their ESG (Environment, Social, Governance) objectives. This step could spark the interest of many fleet companies looking for ways to improve their environmental performance. In addition, some governments have required companies to reduce their CO2 emissions.

The market for emissions reduction technologies is poised for expansion, especially in light of tighter environmental regulations and growing interest in ESG compliance. dynaCERT is ideally positioned to benefit from this growth, especially since the number of vehicles far exceeds new purchases. The challenge of making existing fleets more low-emission offers the Company significant growth opportunities. For investors, this is an exciting opportunity to invest in a company at the beginning of a potential market boom. As the adoption of carbon-reduction technologies increases, dynaCERT is sure to be in demand in the coming years. The stock is currently available for CAD 0.195.

Daimler Truck - On the road to decarbonization

Daimler Truck, a leading manufacturer of trucks and buses, is increasingly focusing on environmentally friendly technologies and decarbonization. The Company offers a comprehensive range of vehicle types, covering both traditional and new drive technologies. In addition to its focus on low-emission diesel engines for heavy-duty commercial vehicles, the Company is a pioneer in zero-emission vehicles (ZEV), investing heavily in battery-powered, fuel cell and hydrogen combustion engines. The aim is to meet the diverse needs of customers while significantly reducing CO2 emissions.

The latest results from Daimler Truck paint a picture of stability despite regional challenges. In the third quarter, the Company generated revenue of EUR 13.1 billion, compared with EUR 13.9 billion in the previous year. While North America presented itself as a strong market, Europe struggled with difficult conditions. Adjusted EBIT fell to EUR 1.19 billion, slightly below the previous year's figure but better than analysts had expected. Asia showed a mixed performance, with Brazil standing out positively. The forecasts for the full year remain unchanged, with a sales target of up to 480,000 units and revenue of up to EUR 55 billion.

With Achim Puchert's appointment as head of Mercedes-Benz Trucks from December, Daimler Truck is relying on experienced leadership to meet the challenges in Europe. Puchert, previously responsible for the successful business in Latin America, brings extensive expertise and is expected to stabilize the European market. After the restructuring in Brazil, he will likely implement similar measures in Europe. This decision underscores Daimler Truck's commitment to drawing on proven strategies for success and preparing for the future. The stock is currently available for EUR 36.40.

Nel ASA, dynaCERT and Daimler Truck are driving decarbonization forward, although they are taking different approaches. Nel ASA recorded a 21% increase in sales in Q3, but is struggling with declines in PEM electrolysers. dynaCERT offers an immediately implementable solution for CO2 reduction in diesel vehicles with its HydraGEN™ technology. Verra certification also opens up the market for carbon credits. Daimler Truck is committed to zero-emission vehicles and plans to stabilize the European market through experienced leadership. Hydrogen technology can help reduce emissions.