May 9th, 2022 | 11:42 CEST
Nel ASA, dynaCERT, Plug Power - Hydrogen in greater demand than ever before
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Nel ASA - Long way to go
One of the best-known companies in the hydrogen sector is the Norwegian specialist Nel ASA, which despite a correction of over 60%, still has an attractive stock market valuation of EUR 1.81 billion. However, the valuation is still more than ambitious compared to analysts' forecasts of EUR 0.12 billion for the full year 2022. The figures for the first quarter have been postponed. The Norwegians announced, without reason, that the quarterly conference initially scheduled for May 5 has now been postponed to May 11.
On the operational side, an order from the subsidiary Nel Hydrogen Electrolyser AS for an alkaline electrolyzer by an Indian refinery was announced. The hydrogen is to be used for production in the area of palm oil refining and the production of oleo-chemicals. The total order volume is around EUR 2 million. Delivery of the plant is scheduled for the middle of the following fiscal year.
From a chart perspective, the EUR 1.30 mark is a prominent support area. Should this be broken, also due to the weak overall market, the next test would be at EUR 1.20. An investment, therefore, does not seem to be advisable at the moment.
Waiting for the figures
Also on May 11, the pioneer of fuel cell technology, US company Plug Power will announce quarterly figures. As reported in a detailed report, the goals of the enterprising CEO Andy Marsh are ambitious. For the full year 2022, sales of between USD 900 million and USD 925 million are expected. A historic event could then occur in 2024, as for the first time in the Company's long history, EBITDA should be in the black. The big breakthrough is then planned for 2025, with a sales target of USD 3 billion, a gross margin of 30% and an operating profit of at least 17%.
At the same time, the stock market value is already currently USD 11.87 billion. From a chart perspective, the support area at USD 20.50 is of utmost importance. Should this be broken, the low for the year at USD 17.51 beckons. The indicators continue to diverge negatively so that a fall below this area, which would trigger several stop-loss orders, cannot be ruled out. So Plug Power is currently in good hands on the watch list.
The CEO explains himself
dynaCERT has presented its figures for the past fiscal year 2021. The past year continues to be significantly impacted by the global COVID-19 restrictions and the restrictions on the Company's dealers to offer installation services. As a result, revenue for the full year was only CAD 757,002. Total cash on hand at year-end was CAD 8.34 million.
For more than 15 years, the Canadians have been focusing on the benefits of hydrogen technology. They have developed HydraGEN, a highly innovative and patented technology with significant potential due to mandatory carbon reduction targets in the transportation sector. In Germany alone, around 250,000 of the approximately 340,000 registered trucks would have to be climate-neutral by 2030; in Europe, the figure is 2.3 million units.
dynaCERT has the key with the Carbon Emission Reduction Technology, with 5 globally secured patent families. The resulting HydraGEN product is used in combustion engines, especially heavy vehicles. Here, the electrolysis unit produces water and oxygen, optimizing fuel combustion, resulting in a reduction in fuel consumption and, more importantly, a drastic reduction in emissions of up to 19%.
In addition, HydraLytica, intelligent software that records and analyzes consumption, has been developed. The saved CO2 can be converted into corresponding certificates and sold by the fleet companies. Because sales have now been expanded worldwide to almost 40 countries, dynaCERT could surprise positively in operational terms. In recent months, the share price has only known the way south, which means that initial reports of success with regard to a roll-out could produce a short squeeze.
At the virtual International Investment Forum IIF, dynaCERT CEO Jim Payne will take questions from investors. To register, please visit here.
Because of the Ukraine crisis, the shift from fossil fuels to alternative energy is accelerating. Hydrogen is seen as the missing puzzle piece of the energy transition. However, market leaders like Plug Power and Nel ASA are already ambitiously valued. In contrast, dynaCERT could provide a surprise if the news flow is positive.
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