04. March 2021 | 08:48 CET
NEL, Enapter, Ballard Power: More than a dream of the future
Hydrogen was the big thing for many speculative investors last year. But recently, share prices have plummeted. What happened? After the highs of the past few months, investors are taking profits. In addition, the market is looking at the bare facts. This view reveals excellent prospects, but also many investments along the way. We present three stocks in check.
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ISIN: NO0010081235 , DE000A255G02 , CA0585861085
"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
NEL: Jack-of-all-trades under pressure
Norway's NEL is the hydrogen superstar. In addition to producing hydrogen, the Company also handles distribution and storage. NEL itself has stakes in various companies and aims to combine different technologies to advance the hydrogen theme. In 2021, NEL plans to invest further, hire new employees and thus come closer to its goal of offering a ton of green hydrogen at USD 1.50 by 2025. Currently, green hydrogen, i.e. hydrogen produced with renewable energies, is not yet competitive.
But 2025 is still a while away - especially on the stock market and a lot can happen in such a long time. In recent weeks, the NEL share has retreated from its highs above the EUR 3 mark and has also fallen below some critical chart levels. The short-term picture is, therefore, rather gloomy. Those who still believe in the story around NEL should wait for a bottoming out.
Enapter: German hydrogen hope is getting serious
The Enapter share has also consolidated in recent weeks and currently seems to have stabilized around EUR 30. The Heidelberg-based hydrogen pioneer has dedicated itself entirely to the task of making hydrogen more affordable. The Company is building modular hydrogen generators based on anion exchange membrane technology and holds patents for them in Europe, the USA, China and India. Construction of the Company's production plant in Saerbeck, North Rhine-Westphalia, is scheduled to begin this September and be completed in 2022. Already recently, the first Enapter employees started work in rooms at the Münster University of Applied Sciences. Once the factory is in full production, Enapter aims to manufacture more than 100,000 electrolysers annually.
The Company estimates its lead over the competition at up to five years. A capital increase is currently underway to drive further development and implement production as planned. Enapter intends to raise more than EUR 30 million, with the subscription price of the new shares set at EUR 22. The fact that the market price is currently at a significantly higher level can be interpreted as a sign of strength. Enapter is an attractive hydrogen play "Made in Germany" and is in no way inferior to many big names. Investors should have the stock on their watchlist.
Ballard Power strongly positioned
Also considered an attractive hydrogen stock is Ballard Power. The Canadian manufacturer of fuel cells presented the first hydrogen-powered bus as early as 1993 and has repeatedly entered into cooperation agreements with the automotive industry's well-known representatives over the years. Since 2018, there has been a strategic partnership with the Chinese Company Weichai Power. As a result, Ballard Power receives orders for fuel cells for buses and trucks, among other things, for the Chinese market. Most recently, Ballard Power also cooperated with Alexander Dennis Ltd, one of the largest non-captive omnibus manufacturers, and is therefore indirectly working with the Chinese electric car manufacturer BYD.
Ballard Power's stock lost 23% in the last month alone. In the longer term, however, the stock remains in the black. Since market experts consider hydrogen to be a technology for buses or trains, Ballard Power appears to be well-positioned with its numerous cooperations and years of experience. However, for buses to be profitable on the road, low-cost green hydrogen is crucial. Here, companies such as NEL and the German hydrogen hopeful Enapter could come into play.