19. November 2021 | 10:55 CET
NEL, Enapter, Plug Power: Where does the music play for hydrogen?
Hydrogen is an essential pillar of the climate turnaround - after all, hydrogen as an energy carrier releases no CO2 and can be produced using renewable energy. But the technology is only just taking off. Such early phases are characterized by volatility and lean periods on the market. But those who believe in hydrogen for the long term can seize opportunities right now - after all, many shares are trading well below their peak prices. We present three stocks.
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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: Caution at 2 euros!
The NEL share is one of the favorites of German private investors. In the past year, probably every active trader has had the stock in their portfolio at least once. NEL takes care of hydrogen storage, transport, and distribution and thus plays a decisive role around the new technology. In the past few months, observers have repeatedly criticized NEL for its low sales and the fact that the figures do not match the ambitious valuation. Recently, however, the share price turned significantly upward - what is the potential now?
From a chart perspective, NEL's share price has developed several interesting markers in recent months, which the share price has used as a guide. The area between EUR 1.20 and 1.30 acted as a support zone. Over a long period of time, the share price oscillated sideways and at times even indicated a renewed slide to the downside before finally breaking out to the upside. This bullish impulse led the share to its current level of around EUR 2. This area already marked an interim high in the downward trend at the beginning of July and is likely to be difficult to overcome without fresh impetus. Because of the still-high valuation, investors should be somewhat cautious with NEL.
Enapter: Cheap hydrogen made in Germany
In contrast, things look better for the German hydrogen stock Enapter. The price of Enapter is currently reminiscent of the situation of NEL between EUR 1.20 and 1.30 with much lower volatility. Enapter's goal is to make green hydrogen inexpensive with its electrolyzers, which can be operated in a modular fashion. To this end, the Company is investing in Germany and plans to start series production in Germany as early as next year at its site east of Münster. Currently, Enapter is still producing in Pisa, Italy.
Enapter has its patents and wants to make it possible for customers to combine several electrolyzers into so-called stacks. Software is to ensure that the individual modules work together in the best possible way. The share has currently come to rest between EUR 20 and EUR 30 and shows low volatility. Beyond a price of EUR 30, the share should return to a dynamic upward trend. Until then, it is worth getting a foot in the door. The business model seems well thought-out and promising, but the stock remains speculative.
Plug power with momentum
Just how great the potential of hydrogen solutions can be is also demonstrated by the share of Plug Power - in the past three months alone, the value has risen by a whopping 67%. Plug Power stands for its own fuel cell systems and has been on the market for many years, which has resulted in numerous good relationships with larger companies. Most recently, there was good news from HYVIA, a joint venture with Renault: The Company is moving more and more toward series production of hydrogen vehicles, such as a minibus. While the stock has been doing well, Plug Power is not trading at resistance, like NEL. While momentum could stall at EUR 40, Plug Power's chart also looks better from a long-term perspective than many of its hydrogen sector peers.
While Plug Power's stock is a star of the industry, the German stock Enapter has been quiet lately. And yet, Enapter's stock is precisely where it all depends for the hydrogen market: on price. Only if hydrogen is produced cheaply can the technology become established. Although a distribution network, which NEL is working on, is crucial for the hydrogen breakthrough, NEL currently seems to have exhausted its potential. The hydrogen market offers investors a colorful bouquet of diverse opportunities.