April 19th, 2022 | 14:06 CEST
Nel, dynaCERT, Daimler Truck - Climate Targets: Hydrogen is the key technology!
As early as the summer of 2020, the German government set an important point with the adoption of the "National Hydrogen Strategy", which has suddenly gained importance in view of the Ukraine war. Politicians and experts are convinced that hydrogen, as a versatile energy carrier, will play a key role in achieving the energy and climate targets. It is now essential that the defined, coherent, but often still too theoretical framework for action is quickly filled with life. With the right stocks, investors can benefit from these developments.
time to read: 3 minutes
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Author:
Carsten Mainitz
ISIN:
NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , Daimler Truck Holding AG | DE000DTR0013
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Author
Carsten Mainitz
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
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Infrastructure as a basis for growth
The action plan within the framework of the "National Hydrogen Strategy" is intended to take effect along the entire hydrogen value chain, from production and transport through to utilization and subsequent use. At present, infrastructure plays an important role as a basis for networking and growth.
H2 MOBILITY Germany is a leading operator of hydrogen refueling stations, which already operates over 90 stations and aims to expand this network to 300 by 2030. To this end, the Hy24 fund, as the world's largest investment platform for clean hydrogen, recently invested a further tranche of EUR 110 million together with industry shareholders such as Air Liquide, Daimler Truck, Hyundai, Linde, OMV, Shell and TotalEnergies.
Nel - New orders received
The big picture is right. Europe is the world leader in hydrogen production. The European Commission aims to produce 20 million tons of hydrogen annually by 2030. Achieving this goal will require electrolyzer capacities of between 120 and 200 GW. However, according to expert estimates, the current global capacity is only 0.2 GW and would have to increase by a factor of 1000 by the end of the decade!
Nel is the largest electrode manufacturer globally, with products in 80 countries, and it should benefit from the enormous growth in the sector. Recently, the Norwegians were able to report several new orders. Likewise, the fully automated electrolyzer plant on the Norwegian peninsula of Herøya was commissioned. Initially, production of 500 MW per year is possible, which can be increased to a capacity of 2 GW.
The good prospects prompted RBC analyst Erwan Kerouredan to confirm the buy recommendation for the Nel share and increase the price target to NOK 24, resulting in an upside potential of a good 50% for the share certificates. The Company is currently valued at the equivalent of EUR 2.5 billion.
dynaCERT - Bridge technology on the rise
The Canadian Company offers a promising bridging technology. Using the proprietary electrolysis system "HydraGEN", a small amount of hydrogen is generated, significantly reducing CO2 emissions from large diesel engines without any loss of power.
The patented system is already in use in North American fleets. These save on high conversion costs, increase efficiency and benefit from the use of connected telematics software, allowing CO2 savings to be measured and later monetized.
The latest plans of the Canadian government should soon lead to an increase in demand for dynaCERT products. The background is the tax credits of 30% for investments in clean technologies announced for the current budget. After significant share price losses in recent months, a countermovement for the stock could thus gradually emerge at a valuation level of around CAD 60 million.
Daimler Truck - Innovative giant
The world's largest commercial vehicle manufacturer, with approximately 100,000 employees, looks back on a short stock market history. The Company was only spun off from Daimler AG in December 2021. The opinion of analysts is consistently positive: the experts believe that the shares of the Company, which are valued at just under EUR 20 billion, have an upside potential of 53%.
What does the future hold for trucks? The Boston Consulting Group (BCG) recently analyzed the costs of the various drive systems in detail. The consultancy calculates that electric trucks could undercut their diesel counterparts in terms of overall costs as early as 2025. Fuel cell propulsion is expected to be competitive from 2030.
Elsewhere looking ahead technologically, Daimler Truck plans to launch a self-driving production truck for long-distance haulage before the end of the decade. The group said its subsidiary Torc Robotics is working on testing autonomous trucks in the US with major logistics companies.
The hydrogen market offers enormous growth potential. Nel will undoubtedly benefit from this development. dynaCERT is also likely to be on the winning side with its bridging technology; in addition, the Company is valued low. Analysts believe that Daimler Truck's share price will rise.
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