Nel ASA, Myriad Uranium, RWE – The world needs CO2-free energy

Nel ASA – Green hydrogen: Key to the energy future

Green hydrogen is playing a crucial role in the world's pursuit of sustainable energy. Nel ASA, a leader in hydrogen technology, recently announced that it has received a grant of up to EUR 135 million from the EU to industrialize its new pressurized alkaline technology. This promising technology is currently in the prototype stage and could represent a significant step towards more cost-effective green hydrogen production. Håkon Volldal, President and CEO of Nel, emphasized that this funding will accelerate the market launch of the innovative technology.

In Q3 2024, Nel ASA recorded revenues of NOK 366 million, an increase of 21% compared to the previous year. While the alkaline segment made a positive contribution to EBITDA, the weak performance of the PEM segment had a negative impact on the overall result. EBITDA amounted to NOK -90 million. Despite these challenges, the net loss decreased moderately by NOK 115 million compared to the previous year. The order situation remained subdued, with an order intake of NOK 161 million, a decrease of 52% compared to the previous year.

Despite the current challenges, Nel foresees a promising future, particularly with political support from the EU and national programs. Analysts such as Erwan Kerouredan of the Canadian bank RBC are optimistic about Nel's potential and rate the stock as "Outperform". The target price of NOK 12 reflects confidence in Nel's ability to benefit from public funding to support its strategic growth initiatives. Thanks to significant investments in forward-looking technologies and partnerships, Nel is well-positioned to benefit from a market recovery. Currently, one share costs NOK 4.60.

Myriad Uranium – Good prospects in the US

With the growing importance of sustainable energy sources, nuclear power is once again attracting increased investor attention. Given global efforts to reduce CO2 emissions, the expansion of nuclear power plants is seen as a crucial step in securing a clean energy future. This trend is also influencing the uranium market. In particular, companies such as Kazatomprom and Cameco are benefiting as the leading suppliers, but the nuclear power plants that are planned and under construction will further increase demand, meaning that additional sources of uranium will be required. In particular, the US needs more uranium to reduce its dependence on uranium imports. In this context, Myriad Uranium could become a significant player.

The Copper Mountain project in Wyoming is at the center of Myriad Uranium's future plans. With a 75% interest in this project, which was explored by Union Pacific through approximately 2,000 drill holes as early as the 1970s, Myriad has access to a potential resource of over 65 million pounds of uranium. The historical significance and existing data give the project a strategic advantage, as seven historical uranium occurrences have already been identified. Myriad recently closed a successful financing round of CAD 5.9 million and has started drilling campaigns to update and expand the uranium resource estimates. The latest drill results from the Copper Mountain project indicate significant uranium deposits.

CEO Thomas Lamb is optimistic that modern exploration techniques could reveal more extensive resources. The Myriad stock has already gained momentum and could see further growth, particularly due to the continued increase in demand for uranium and the geopolitical uncertainties surrounding uranium supply. New laboratory results are expected to be published in the coming months, which may provide further guidance for the Company's future development. For those interested in learning more about the Company, CEO Thomas Lamb's presentation at the International Investment Forum on October 15 is recommended. The stock price shot up to CAD 0.65 in recent days and has been consolidating since then. Currently, the price is CAD 0.485.

RWE - Transformation in the field of renewable energies

The energy transition is of key importance to RWE as the Company seeks to reduce its dependence on fossil fuels. This transition is being driven by investments in renewable energies, particularly in offshore wind power. With ambitious projects, RWE aims to expand its leading position in the energy sector. The Company's strategy reflects the increasing importance of sustainable energy sources.

RWE has secured a significant place in the offshore wind sector through strategic partnerships, such as with TotalEnergies. These alliances include major projects, such as the construction of two wind farms with a total capacity of 4 gigawatts off the German coast. In addition, the expansion of existing farms is being driven forward. Such alliances enable RWE to exploit economies of scale and combine innovative strength to establish offshore wind energy as a key pillar of its renewable strategy.

Despite impressive results and planned dividend increases, investor sentiment remains cautious. RWE responds with a share buyback program to strengthen investor confidence. In October, 226,500 shares were repurchased. Company officers also recently bought shares. Now, the Company has to deal with the upcoming collective bargaining negotiations, in which the union is demanding substantial salary increases of 8.5%. Analysts remain confident and issued a "Buy" recommendation, pointing to the long-term opportunities in renewable projects. The publication of the quarterly figures on November 13 could provide additional impetus for the share price. Currently, the share is trading at EUR 30.98.

The global need for CO2-free energy is becoming increasingly urgent. Nel ASA plays a crucial role in this regard by producing green hydrogen, supported by EU subsidies, despite financial challenges. Myriad Uranium has a good chance of benefiting from the increasing demand for uranium with its Copper Mountain project in the US. RWE is committed to the expansion of renewable energies, in particular, offshore wind power, to reduce its dependence on fossil fuels. The combined use of these technologies is crucial for a sustainable future.