13. April 2021 | 10:04 CET
Nel ASA, dynaCERT, Everfuel - What is next for hydrogen stocks?
Without a doubt, hydrogen will remain one of the most exciting topics on the capital market in the coming years. If the current German government has its way, Germany will become a global pioneer in using new types of climate-friendly hydrogen energy. Berlin is thus pumping a total of EUR 9 billion into this industry of the future. What happens after the correction? Do the sharply fallen values turn upward again, or do you continue to reduce the inflated valuations? And are there alternatives?
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ISIN: NO0010081235 , CA26780A1084 , DK0061414711
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
dynaCERT - More than an alternative
Around 40% of all climate gas emissions in traffic come from the exhaust pipes of trucks. Due to the energy turnaround, this is now to change according to the European Union. Truck manufacturers must reduce CO2 emissions by an average of 15% and by as much as 30% by 2030 or face heavy penalties. The consequences for fleet operators are fatal. Heavy penalties from politicians or an immense investment in the fleet of the future? dynaCERT, a Canadian Company, has the patent remedy ready and has perfected this in sixteen years of research work.
Instead of renewing the entire fleet, the patented hydrogen-based electrolysis system "HydraGEN" makes it possible to reduce fuel consumption and emissions of large diesel engines by up to 20%. In addition to "HydraGEN," dynaCERT has developed intelligent software already being used in test runs in more than 400 vehicles. With "HydraLytica," it is possible to record and analyze the fuel savings. The fleet manager can also control fleet management, route planning, driver safety, and load management.
Technically, the patent could already be applied to all passenger cars; however, this is still pie in the sky. Currently, dynaCERT is concentrating on the fleet, logistics, construction machinery and diesel generator segments. The Company was able to report successes in the mining sector. Several HydraGEN units have been delivered to international mining companies. The equipment is already in use in mines in Brazil, Russia, China and Peru. The positive news flow should continue in 2021. The share corrected from over EUR 0.60 to currently EUR 0.37 and is interesting in the long term at a reduced level.
Nel ASA - Correction still going on!
There was news again from the Norwegian hydrogen specialist. Nel ASA has concluded a framework agreement with the international consulting firm John Wood Group. Both companies want to work together to develop and implement large-scale, complex green renewable hydrogen projects in selected regions globally. Listed John Wood Group is a leading global consulting and engineering firm in the energy and built environment sectors, providing consulting and operational solutions in more than 60 countries and employing approximately 40,000 people.
The share price of Nel ASA was unable to benefit from the fundamentally good news and fell by almost 4% to EUR 2.41 in yesterday's trading. From a chart perspective, the picture would have brightened if the EUR 2.65 mark had been overcome. The central support zone at EUR 2.19 should hold in the next few days; otherwise, there is a threat of a further correction in the direction of EUR 2.
Everfuel - Entry into shipping
The former Danish subsidiary of Nel ASA, Everfuel, also had news to report. The Company, founded from a spin-off, signed a letter of intent with an unnamed German-Norwegian shipping company for the hydrogen supply of a new emission-free ship concept. The Danes will be responsible for the supply of hydrogen, including the planning, installation and operation of an optimized, scalable refueling solution. The target start of operations is early 2023, with a first ship expected to consume about 1,000 kg of hydrogen per day. By entering the maritime sector, Everfuel is doing pioneering work. According to Everfuel CEO Jacob Krogsgaard, ships are mainly powered by marine diesel engines, which are very harmful to the environment.
A single large container ship or passenger vessel can emit as much sulfur emissions into the air as 50 million cars in a year. Switching to zero-emission solutions should make a significant difference. The International Maritime Organization (IMO) has adopted binding measures to reduce greenhouse gas emissions and phase them out entirely by the end of the century, initially targeting at least a 50% reduction in international shipping by 2050 compared to 2008 levels. Everfuel's stock has also been swept up in the hydrogen correction in recent weeks. The market-limited stock fell from over EUR 18 to EUR 6.68 at its low. Currently, a countermovement is underway with prices at EUR 9.22. Should the price fall below the EUR 9 mark, the consequence would be a retest of the lows.