February 13th, 2023 | 20:04 CET
Nel ASA, dynaCERT, Plug Power - Hydrogen as the problem solver in the energy transition
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Nel ASA - New order for 40 megawatts
Analysts at Morgan Stanley increased their price target for the hydrogen specialist's stock from NOK 13 to NOK 22 and upgraded it from "Equal-weight" to "Overweight". In general, the Company has a good reputation in the USA. CEO Håkon Volldal recently reported a visit from the governor of Michigan, who campaigned to build a gigafactory in his state. Added to this are the efforts of the European government not to lose touch with the hydrogen sector.
Nel's subsidiary, Nel Hydrogen Electrolyser AS, has signed a contract with HyCC to supply 40 megawatts of alkaline electrolyzer equipment for the H2eron project, valued at EUR 12 million. The project aims to produce sustainable aviation fuel from industrial byproducts and residual streams fueled by green hydrogen. Hans Hide, CPO of Nel, sees the project as an important step in reducing emissions in the aviation sector.
Even though the group is not yet making a profit, production capacities are to be further expanded. With the expansion of renewable energies, the production of green hydrogen is becoming increasingly sensible, especially in times of energy surplus from renewable energies. Visit researchanalyst.com for more information. After Morgan Stanley's recommendation, the share gained, but had to give back most of the gains in the last 2 trading days of the week and is trading at NOK 18.13.
dynaCERT - Waiting for VERRA certification
dynaCERT is a Canadian company revolutionizing large diesel engines with its innovative HydraGEN technology. Using a blend of hydrogen and conventional fuel, the HydraGEN system reduces both emissions and fuel costs and provides longer engine life through optimized combustion. In Q4, dynaCERT reported 137 orders for the HydraGEN systems, which can be easily retrofitted to many diesel vehicles. This is a significant increase compared to previous quarters.
Now, together with VERRA, the next step will be taken, and dynaCERT customers will be offered the chance to get CO2 certificates. The CO2 market will grow significantly again in the coming years, and here dynaCERT has positioned itself early to benefit from the growth. That is because the Company receives a share for managing the CO2 certificates. Customers need to be able to offset their greenhouse gas emissions to achieve their ESG goals. To fund the growth of its core business, dynaCERT plans to launch an offering of up to CAD 10 million of carbon credit convertible notes.
On February 15, 2023, dynaCERT CEO Jim Payne will present the Company at the 6th International Investment Forum and will certainly talk about the carbon credit market. Be there to experience firsthand the potential of dynaCERT's HydraGEN technology and the immense opportunities in the carbon credit industry. dynaCERT shares had to give up gains after a small rally at the beginning of the year. In the process, a triple bottom was formed on February 7. Currently, one pays CAD 0.19 for a share certificate. If the emission credits come, the share would have to be revalued.
Plug Power - Revised forecast 2022 missed
Plug Power, a US-based fuel cell and hydrogen company, and Johnson Matthey, a UK-based fuel cell component specialist, have entered into a long-term strategic partnership to enhance the hydrogen production industry in the United States. As a key supplier of components, Johnson Matthey will provide Plug Power with a secure source of catalysts, CCM and precious metals, as well as unique recycling solutions. Together, the two companies plan to build a plant in the US that will produce 500 tons of hydrogen per day starting in 2025. Three years later, the plan is to produce 1,000 tons.
This strategic partnership will undoubtedly positively impact the development and sustainability of Plug Power's hydrogen production. Above all, the Company must keep its promises in the future. At the end of January, it came out that the group will miss its already downwardly revised target figures for 2022 by about USD 100 million. In the conference call, the Company acknowledged problems with the electrolyzers and that it needs to catch up in building up hydrogen production capacities. Nevertheless, management wants to reach the targeted USD 1.4 billion in sales in 2023.
It is a very ambitious plan because if organic growth remains at around 15%, it will be impossible to reach the set target. The stock, which has long been stronger than Nel ASA, for example, has not been able to keep up with the price increases of its competitors. Since mid-January, the stock has been running between USD 14.84 and USD 18.88. As an investor, one should take a very close look at the upcoming figures and, if necessary, wait until the Company can report better figures.
Hydrogen can solve some problems of the energy transition. Politicians are open to the new technology and financially supporting the industry. Hydrogen companies are not yet making money, but that could change by 2025. Nel ASA is currently also in demand in the US. The new CEO is a breath of fresh air. dynaCERT offers its customers a way to reduce their diesel engines' emissions and save money in the process. This is ideal for freight transport, where climate neutrality is increasingly important. If the CO2 certificates come, customers are likely to be lining up. Plug Power has once again promised too much. The Company must deliver in the future.
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