17. September 2021 | 13:43 CET
NEL, dynaCERT, Volkswagen: Where hydrogen has not yet been written off
Will hydrogen become a climate saver in homes? Or will it revolutionize the propulsion technology of ships and trucks? Even if hydrogen has lost some of its fantasy in recent months, the energy carrier is still on the agenda of many inventors and engineers. We introduce three companies that are - sometimes more and sometimes less - involved with hydrogen.
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ISIN: NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , VOLKSWAGEN AG VZO O.N. | DE0007664039
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
NEL: Will the EUR 1.30 mark hold?
One of the pioneers around hydrogen is the Norwegian Company NEL. Whenever hydrogen is to be produced, stored, transported or distributed, NEL comes into play. But at the moment, it does not look like we need a widespread hydrogen filling station network. The reason: car manufacturers have decided in favor of electric cars with batteries and against fuel cells. Only for trucks are there still solid hydrogen plans. But hydrogen refueling stations along highways and in industrial areas are enough for that. So has the hydrogen fantasy around NEL completely evaporated?
For months, the share has been struggling again and again on the stock market with the EUR 1.30 mark. So far, the value has bounced off this point several times. But what is the current situation? Even though hydrogen still plays a role in politicians' plans and at some truck manufacturers, such as Daimler, the fantasy on the stock market has faded. Since the overall market is also weakening and China's real estate market is increasingly seen as a global risk factor given the problems of the Evergrande real estate company, the omens for growth investments are currently poor. For the fallen angel NEL, this is even more true.
dynaCERT: The coming weeks will be exciting
At first glance, dynaCERT's share price does not look very promising: It has been falling for months, and the big breakthrough for the HydraGEN technology has not yet been achieved. But unlike NEL, HydraGEN can already be used in numerous vehicles today and has a direct positive impact on the environmental balance sheet. The patented technology from dynaCERT involves conversion kits for diesel engines. Specifically, hydrogen is added to the classic combustion process in the engine as needed. The HydraGEN technology can pay off, especially for expensive machines or trucks.
Since dynaCERT also offers telematics software that can report the CO2 saved, companies and fleets can leave a greener footprint than before. When ESG criteria are gaining importance, and even financing conditions are linked to sustainability, the commitment can make sense. At the end of the month, dynaCERT will hold its annual general meeting. The Company may also provide an outlook during the event. Given the proven effectiveness of the technology, which also fits the spirit of the times, investors should not write off dynaCERT's stock. The share is trading at almost a three-year low and could be interesting for bargain hunters.
Volkswagen: From problem child to beacon of hope
Volkswagen is not for bargain hunters - that goes for the cars and the stock. The electric vehicles from Wolfsburg, in particular, are still not competitive with combustion engines. But the Group's clear commitment to electromobility was nevertheless the right step. It seems as if VW has gained a greener image within a few weeks - which is remarkable considering the previous history. The stock market also priced in more future fantasy for VW within weeks. The shares are currently trading lower than at any time since March. The dividend yield of around 3.7% is decent.
Even if the VW share is no longer a high-flyer, the payout and prospects are good. By contrast, the situation at NEL is much worse. Here, the EUR 1.30 mark must first be held, below which it could become uncomfortable. The dynaCERT share currently seems to have found a bottom. The Company has promising technology but has not yet been able to put its horsepower on the road. Investors hope that something will happen around the Annual General Meeting.