07. July 2021 | 15:29 CET
NEL, Enapter, Plug Power: Three hydrogen stocks - two opinions
Hydrogen is a technology of the future. If renewable energies are used to produce hydrogen, then the energy carrier is even really clean. Especially when it comes to large vehicles, such as ships or trains, hydrogen can show its strengths. Hydrogen can also be used in trucks. Other areas of application include decentralized energy supply. We introduce three companies around hydrogen and explain how to view their respective shares.
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ISIN: NEL ASA NK-_20 | NO0010081235 , ENAPTER AG INH O.N. | DE000A255G02 , PLUG POWER INC. DL-_01 | US72919P2020
"[...] 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: What will become of the star of the show?
NEL is something like the star of the hydrogen world. The Norwegian Company made a name for itself last year and caused spectacular price gains on the stock market. At its peak, the share price rose from EUR 1.50 to over EUR 3.30 in just a few months. In the meantime, however, the euphoria has subsided, and the share has corrected. Again and again, the share corrects in the downward trend and makes short, intermediate sprints. At the same time, inexperienced investors, in particular, are repeatedly raising hopes of a comeback. Instead of dreaming, however, private investors should face up to the realities.
NEL takes care of the production, storage and transport of hydrogen. The Company has made a good name for itself around this energy carrier. However, the operational development is still sluggish: 10 filling stations and another letter of intent do not tempt experienced stock market players. For the share to get back on track, more needs to happen operationally. Until then, NEL lives on its big name.
Enapter: Mass production is the way to go
Enapter is still working on its big name. But the chances are good that the Company will take off in Germany. Politicians consider hydrogen to be one of the essential technologies of the future. Enapter plans to create 300 jobs in the climate community of Saerbeck in North Rhine-Westphalia, where it will manufacture its electrolyzers for producing hydrogen. The plan is to build a total of up to 100,000 electrolyzer units there each year. The project is currently under construction and is scheduled for completion in 2022.
The advantages of the Enapter technology lie in its modular design. It means that hydrogen production can be easily expanded, and the process can be triggered remotely if required. The technology also does not require expensive catalyst materials such as iridium and platinum and is also expected to be remarkably inexpensive thanks to the envisaged mass production. Enapter's stock is on the rebound after a first quarter that was relatively weak for all hydrogen stocks. The share is speculative, but the way is paved for Enapter's sustained success. The stock is a good alternative to stocks like NEL, to which the market has already given immense advance praise.
Plug Power: Why the calm is deceptive
Advance praise has also been given to Plug Power's stock. The manufacturer of hydrogen fuel cell systems has been active around hydrogen for about two decades. One of the Company's goals is to develop fuel cells that can be recharged within minutes. In addition to cooperation with Amazon, which uses Plug Power's hydrogen technology in warehouses and other applications, there is also a cooperation with SK Group, which holds 10% of the shares in Plug Power. The stock has also recovered after selling off in the first few months of the year. Nevertheless, the recent calm is deceptive. Plug Power, too, depends on its ability to bring its technology closer to customers and generate revenue.
While NEL and Plug Power are old hands in the hydrogen business, Enapter has only been on the stock market for a few months. But the technology has been around for a while, and its plans for mass production of electrolyzers sound promising. With a new growth industry facing consolidation sooner or later, investing in a price breaker can only make sense. While Enapter's stock is also speculative, the Company is on a good path. From 2022 onwards, things will get serious for Enapter. Then, solid sales figures will have to follow.