July 13th, 2022 | 14:23 CEST
Renewable energies on the verge of a comeback - JinkoSolar, dynaCERT, Nel ASA
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Nel ASA with strong order situation
The manufacturer of electrolyzer systems for the production of hydrogen and provider of far-reaching solutions in the hydrogen segment was able to stop its downward slide, at least for the time being, due to several order announcements and gave the new CEO, Håkon Volldal, a good start on the stock market. The Norwegian Company received an order for the delivery of an electrolyzer system from the Danish Company Skovgaard Energy. Skovgaard Energy, together with partners Topsoe and wind turbine manufacturer Vestas, plans to build the world's first dynamic green ammonia plant. This will involve directly connecting electricity generated from renewable sources such as wind and solar power to the electrolyzer. According to Nel ASA, the order is worth around EUR 4 million, with delivery scheduled for the second half of 2023.
In addition, the Norwegians received an order for a containerized PEM water electrolyzer from Down Under. The order went to the US subsidiary Nel Hydrogen US and was placed by the Australian Company Viva Energy. Once installed, the MC500 containerized PEM water electrolyzer is expected to be the largest on the continent, supplying green hydrogen for a fleet of heavy-duty fuel cell vehicles. As part of the Geelong Energy Hub, Viva Energy is building a new energy refueling station near its Geelong refinery, where batteries can be recharged and hydrogen refueled. The system supplied by Nel is a containerized solution with a production capacity of up to 1,063 kg/day. It will supply fuel cell-grade hydrogen directly to the filling station on site. Like the Danish order, it has a total volume of EUR 4 million and delivery is also scheduled for the second half of 2023.
The share of the hydrogen specialist was able to successfully recover after the expansion of a double bottom at EUR 1.12. In order to complete the formation, it is now essential to break above the vertical resistance at EUR 1.35. On the downside, the marked annual low serves as a stop.
dynaCERT - Waiting for the signal
Shareholders of Canadian energy company dynaCERT, which manufactures and sells carbon emission reduction technologies, continue to have little to smile about, with sales of the globally patented Carbon Emission Reduction Technology and the global roll-out continuing to falter. The patented HydraGEN technology is likely to have its finger on the pulse with the current call from policymakers to reduce CO2 emissions.
HydraGEN is used in internal combustion engines, currently still with a focus on heavy vehicles. Here, the electrolysis unit produces water and oxygen and thus optimizes fuel combustion, resulting in both a reduction in fuel consumption and a reduction in emissions of up to 19%.
With HydraLytica, intelligent software has been developed that records and analyzes consumption. The fleet companies can thus convert the saved CO2 into corresponding certificates and sell them. They are still awaiting a positive response from Verra, which will have the emissions savings checked by independent auditors. Should a favourable decision come, dynaCERT should be able to attach the Verra "Verified Carbon Standard" seal to itself. This milestone would mean that clients would improve their carbon footprint by receiving CO2 certificates. A positive decision from Verra would also likely attract larger clients to equip their fleets with HydraGEN plus the HydraLytica analysis software. Thus, the roll-out problem would be obsolete.
Currently, the share price of dynaCERT is at the level of 2016. Assuming a positive signal, things could take off in the speculative stock. To date, however, the motto is: "Wait and see!"
Taking a breather at JinkoSolar
Despite the massive correction of technology stocks, particularly the shares from the renewable energy segment, the rally of the Chinese producer of solar cells, solar modules and mounting systems for solar modules is unparalleled. After prices of USD 35.41 at the end of February, the Chinese market leader could more than double to USD 76.92. Currently, the increasing overbought condition is being reduced, but stronger support in the area of USD 65.00 should prevent a further slide.
A clear tailwind should also be provided soon by the announcement of a multi-million dollar share buyback program. The approval authorizes the Company to repurchase up to USD 200 million of ordinary shares represented by American Depositary Shares (ADS) over 18 months. The Company's proposed repurchases may be made from time to time in the open market at prevailing market prices in open market transactions, privately negotiated transactions or block trades, and/or through other legally permissible means, it said in a release.
Renewable energy stocks have taken a significant hit in recent weeks but may now have found their footing. Nel ASA hangs on a key resistance. JinkoSolar should catch its breath a bit. In contrast, the market is waiting for the start signal at dynaCERT.
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