Close menu

October 17th, 2022 | 11:19 CEST

Nel ASA, dynaCERT, Plug Power - Hydrogen market booming

  • Hydrogen
  • greenhydrogen
Photo credits:

In January 2021, the first hydrogen hype came to an end. Subsequently, many shares in the sector lost more than 80% in value. However, since the outbreak of the Ukraine conflict, the sector has again come into focus. The reason is the energy shortage, especially in Europe. Green hydrogen promises to store energy and consume it when needed. But since the US climate and tax package has provided hundreds of billions of dollars for zero-emission technologies, this market is also seen as promising. So politically, there is a tailwind for the industry. We, therefore, take a look at three companies with hydrogen technologies.

time to read: 5 minutes | Author: Armin Schulz
ISIN: NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , PLUG POWER INC. DL-_01 | US72919P2020

Table of contents:

    Nel ASA - Large order puts short sellers under pressure

    Norway's Nel ASA is Europe's flagship hydrogen company. But shareholders only had fun with the stock until the end of January 2021, when the share was above NOK 34. Since then, things have mainly gone downhill. This was partly due to the upward exaggeration because the fundamentals of the loss-making company did not allow for this market capitalization. Even today, after more than 71% consolidation, the Company still has a valuation of NOK 16.6 billion. When sales shrank in the second quarter and losses widened, this ultimately called short-sellers to the scene.

    On October 10, Qube Research & Technologies reported they were short 13.1 million shares. But there are 6 more short sellers. In total, the short ratio is 6.3% of all shares. However, with the October 15 announcement, the short sellers may now be getting cold feet because the order from Woodside Energy for alkaline electrolyzers has a volume of NOK 600 million. In comparison, sales for 2021 were NOK 798 million and only NOK 396 million in the first half of the year. Håkon Volldal, CEO of Nel, said, "The market for electrolyzers is developing favorably for Nel. We are now securing high-quality contracts with favorable terms and a manageable risk profile. The contract with Woodside will have a very positive financial impact on the Company."

    At the end of the second quarter, the Company recorded the highest order backlog in its history, amounting to NOK 1,439. The new large order means Nel ASA is growing significantly this year. If short-sellers start to smooth out their positions, the stock will begin to jump on October 17. The Norwegian's stock exited trading at NOK 10.66 on October 14. It is likely to be a volatile Monday. In addition, the figures for the third quarter are due on October 20. It promises to be an exciting week.

    dynaCERT - IAA Transportation a success

    dynaCERT is now almost 20 years old and, during this time, has developed a technology to reduce CO2 emissions from diesel engines. Looking at Germany, the transportation industry needs to reduce its emissions by almost 50% by 2030 compared to 1990. E-trucks are not mature at the moment, and the charging network is also unsuitable with current charging times. Green hydrogen is currently too expensive. The alternative offered by dynaCERT is called HydraGEN. The patented process produces pure hydrogen and oxygen on demand and feeds it into the engine via the air intake. The system is fully computer controlled and ensures optimal combustion. The result is about 50% less emissions, lower fuel consumption and longer engine life.

    The Company was present at the Transportation International Motor Show in Hanover, Germany, from September 20 to 25. According to the Company, many discussions were held with fleet operators and OEMs. Ed Cordeiro commented, "We have seen a greater understanding, comfort and enthusiasm in the conversations about our HydraGEN technology, which has led to immediate orders." Accordingly, news of orders is expected in a timely manner. Together with VERRA, dynaCERT is on track to obtain CO2 certificates. Using the HydroLytica software, users can see improved fuel consumption and emissions values in real-time. The investment typically pays for itself within 9 months for customers.

    Once the Company is certified with the Verified Carbon Standard seal and gets CO2 certificates, the technology is a must-have for all diesel engines that are used a lot. On September 30, the Company announced that one of its customers, Alectra Utilities, received a coveted "Most Innovative Leader" sustainability award for its use of HydraGEN technology. The deployment on 13 vehicles saved 8,000 kg of CO2 and 10% fuel. Those who want a more detailed picture of the Company can watch the 4th International Investment Forum presentation, available on youtube. After a strong rally in mid-August, the share is in a consolidation phase and is currently quoted at CAD 0.21. As an interested shareholder, one should keep an eye on the news.

    Plug Power - Forecast capped

    The counterpart to Nel ASA in Europe is Plug Power in the US. North America's leading hydrogen solutions provider is set to secure a piece of the USD 375 billion US climate change package. The package is intended to help reduce emissions by 2030. Among other things, this will involve subsidizing green hydrogen by up to USD 3 per kilogram. This is ideal for Plug Power, which plans to supply Amazon with just under 11,000 metric tons of green hydrogen annually starting in 2025. The green hydrogen will be produced together with its partner Lhyfe, which is considered a specialist in the production of green hydrogen.

    However, despite all the good news in recent months, the Company had to report on October 14 that the 2022 revenue forecast cannot be achieved. Revenues are expected to be 5-10% below the target. The reason given by the Company was that some major projects cannot be completed until 2023 due to supply chain issues and associated time delays. Otherwise, the demand for fuel cells and electrolyzers remains high. The Company will hold its Plug Symposium on October 19, where it plans to discuss its forecasts for the future.

    For the share, the withdrawal of the forecast was a setback. The share exited Friday trading at USD 18.03, down 6.2%. As recently as October 13, JPMorgan had cut its price target from USD 32 to USD 28. Perhaps the Paris Motor Show, which takes place from October 17 to 23, will bring new impetus. There Hyvia, the joint venture with Renault, will present its Master Van H2-TECH, as well as other prototypes and new products. If the presentation is successful, there could be new orders from this side. The share is likely to remain volatile.

    Hydrogen technology will continue to advance with the tailwind of political decisions and associated subsidies. The developments will take time. NEL Asa may have landed a liberating blow with the large order. dynaCERT's technology offers a transitional solution until the development of hydrogen or e-motors is completed and reduces emissions noticeably until then. Plug Power has suffered a setback. Sales are only shifting, but there will be pressure on the stock in the short term.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author

    Related comments:

    Commented by Fabian Lorenz on March 29th, 2023 | 07:50 CEST

    Nel ASA and Varta continue to decline: dynaCERT convinces analysts during an on-site visit

    • Hydrogen
    • GreenTech
    • Batteries
    • renewableenergies

    Being active in a market of the future is no guarantee for success. Shareholders of Varta had to painfully realize this in recent months. The German battery group has indeed reached an agreement with banks on restructuring. However, there can be no talk of a liberating blow. According to analysts, the share could continue to slide. Experts are also somewhat cautious about Nel ASA. The hydrogen specialist's chart does not look rosy either. In contrast, dynaCERT could be due for a revaluation in the current year. Experts believe the Greentech company has set the course for a commercial breakthrough in 2023.


    Commented by Nico Popp on March 22nd, 2023 | 10:42 CET

    Subsidies beckon, shareholders profit: Volkswagen, NEL, First Hydrogen

    • Hydrogen
    • GreenTech
    • subsidies

    Money from the state comes in handy for many companies. This is especially true when the challenges are great, and the capital requirements are immense. For large industrial companies, subsidies have always been part of the package. Just recently, Volkswagen, for example, picked up money in South Carolina. We explain in which industries there is also something "to be had" for shareholders.


    Commented by Juliane Zielonka on March 17th, 2023 | 19:17 CET

    First Hydrogen, Volkswagen, Daimler Truck - The unstoppable energy transition, who is winning the race?

    • Hydrogen
    • fuelcell
    • Investments

    Canadian fuel cell manufacturer Ballard Power joins First Hydrogen for LCV test drive. The two companies are cooperating to produce the world's first hydrogen-powered vans. According to expert forecasts, the logistics industry will be worth EUR 13.7 billions by 2027. Change at Volkswagen's premium Audi brand is proceeding rather sluggishly. The regulations imposed by the EU are causing problems for CEO Duesmann, who sees it as unrealistic to implement everything that Brussels demands by 2025. Daimler Truck, on the other hand, is looking forward to a major order that will soon get 1.8 million people in the Hamburg metropolitan region moving. The Hamburg-Holstein transport authority signs a major order.