25. February 2021 | 09:42 CET
Nel ASA, Enapter, JinkoSolar - Hydrogen: this is going too far!
There is no question that the future belongs to the hydrogen industry, just as it does to the solar industry. The prospects for renewable energies have improved enormously as a result of climate change. The European Union is pushing ahead as part of the Green Deal, as is the new US President Joe Biden, who wants to achieve an emission-free industry by 2050 at the latest. The result has been two years of hype in share prices, which already contain many future dreams. Now the values are correcting sharply. Is this an end to the exaggerated valuations or merely a short, sharp correction in the upward trend?
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ISIN: NO0010081235 , DE000A255G02 , US47759T1007
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Enapter - the future patented!
The goal of Enapter is formulated clearly. The Company wants to use German technology to produce green hydrogen more cheaply than the competition. Anion Exchange Membrane (AEM) electrolysis is the magic formula used to gain a significant advantage over the competition. The modular system allows for the production of electrolyzers and stacks that can be scaled up to larger units more efficiently and affordably. Combined with its self-programmed software, this will enable Enapter to offer the market an advanced energy system. The technology lead over the competition is 3 to 5 years, according to management. The core technology, AEM electrolysis with a dry cathode, is patented and protected in Europe, the US, China and India. In addition, the Company, which invests 6-8% of sales annually in research and development, has several other patents and important collaborations, such as with the Universities of Pisa, Madrid, the Technical University of Munich and the German Aerospace Center.
Enapter plans to go into mass production with the AEM electrolysis systems by the end of the third quarter of 2022 at the latest, in Saerbeck, North Rhine-Westphalia. The climate community of Saerbeck was specifically chosen as the location by Enapter AG because the town produces more of its own green electricity than it needs itself. This means that production can take place entirely from the green electricity produced decentrally on site. One can thus trace the entire value chain back to 100% sustainable energy production. At the start of production, more than 100,000 modular electrolyzer units are to be created per year. In order to finance this project, the Company's management plans a capital increase with subscription rights in a total issue volume of up to EUR 30.6 million. The subscription price has been set at EUR 22.0. The total costs in Saerbeck are currently estimated at around EUR 97 million. It is not unlikely that the share price will follow the new shares' issue price in the short term. In the long term, Enapter is very interesting due to its technological lead.
Nel ASA - Hyper, hyper!
The Norwegian hydrogen specialist is undoubtedly one of the industry's market leaders, but it is also already very ambitiously valued. Nel's hydrogen solutions cover essential parts of the value chain: from hydrogen production technologies to hydrogen refueling stations that enable the industry to transition to green hydrogen and fuel cell electric vehicles that offer the same fuel supply and range as fossil fuel vehicles. Nel ASA's current stock market valuation is a handsome EUR 2.9 billion, which contrasts with the quarterly figures published last Thursday. While sales and order backlog grew strongly, EBITDA went deeper into the red. In the current quarter, the Norwegian Group generated revenue of EUR 22.31 million representing an increase of 30% year-on-year. The order book has also increased by 90% since then and has a current value of EUR 95.58 million.
At least the compatriots see the valuation as more than justified. Thus, the Norwegian investment house Arctic Securities has raised its assessment for the share of the hydrogen Company. The experts announced an upgrade and pushed the Nel share from "hold" to "buy." Arctic also raised the price target for the share to NOK 35, which represents a significant premium over the current price of NOK 26. The Norwegians thus revised the downgrade of a few weeks ago. Nel ASA is one of the most exciting players; however, there is already a lot of future fantasy in the share price.
JinkoSolar - To heaven and back
The investors of the photovoltaic specialist JinkoSolar are going through a roller coaster of emotions at the moment. While the share price was still the equivalent of EUR 85.07 at the end of December, the stock has since fallen to EUR 43.70. Now the producer of solar cells, solar modules and mounting systems announces an exciting cooperation. JinkoSolar and Tongwei jointly invest in a high-purity crystalline silicon project with an annual capacity of 45,000 tons and a silicon wafer project with an annual production capacity of 15GW.
JinkoSolar will hold a 35% stake in the high-purity crystalline silicon project, while Tongwei will take a 30% stake in the 15GW annual capacity silicon wafer project. In addition, based on the previous procurement contract for 93,000 tons of polycrystalline silicon, JinkoSolar will supply Tongwei with a total of 6.5GW of silicon wafer products for three years.