RWE, F3 Uranium, Nel ASA – New energy policy under Trump! Who benefits?

RWE – Continues to expand renewable energies

In Germany, the energy mix has changed significantly in recent years. The phase-out of nuclear power and the shutdown of coal-fired power plants has dramatically shifted the balance towards renewable energies. The latter now officially account for more than 60% of the total. However, Germany had to import a total of 67 terawatt hours (TWh). The majority of these were nuclear power. The largest net electricity supplier was France, with 12.9 TWh. If one includes German electricity exports, Germany had to import around 25 TWh. RWE is one of the country's energy giants and has successfully transformed towards renewable energy.

The capacity of renewable energy is around 700 megawatts, which is mainly due to wind power projects and solar plants. By 2030, the Company aims to invest a further EUR 11 billion in the expansion of renewable energies and thus become one of the leading providers in Europe. The Essen-based company is already active in Italy, Sweden, Poland, France, and Spain, among other countries. The Company also aims to gain a foothold in the hydrogen sector and is operating a pilot plant for green hydrogen in Lingen. This plant is to be expanded to an industrial size over time.

In mid-January, the Company announced that the Science Based Targets initiative has confirmed that RWE's climate targets for reducing emissions and achieving climate neutrality by 2040 are in line with the 1.5-degree target of the Paris Agreement. After company directors had already bought shares in December, Helle Valentin, a supervisory board member, recently bought shares worth EUR 31,905.50. At the same time, the share buyback program is ongoing, with 5,423,369 shares having been acquired since January 28. Despite the purchases, the share price has not really moved and is currently trading at EUR 28.71.

F3 Uranium – Target price CAD 0.55

The new energy policy under Donald Trump also impacts F3 Uranium. The US only wants to purchase uranium from Russia in an emergency and is therefore pushing to find alternative procurement channels. One of these could be F3 Uranium because, despite the announced import duties for Canada, an energy partnership between the two countries could be beneficial for both parties. Trump also wants to promote access to uranium exploration areas by easing regulations. At the same time, the growing demand for nuclear energy worldwide and innovations such as modular reactors are driving up the demand for uranium. Geopolitical tensions and the focus on security of supply are exacerbating the supply situation, which is causing the price of uranium to rise further – a positive environment for producers like F3 Uranium.

F3 Uranium's flagship project is called "PLN Area". It is located in the renowned Athabasca Basin and is known for the highest-grade uranium deposits in the world. The focus here is on the JR zone on the Patterson Lake North property. The last drilling program was carried out there, with the results being announced on December 3. Up to 50.1% uranium oxide was detected in the peak of drill hole PLN24-176, the best hole of the entire exploration. This shows how much potential the property has. Accordingly, further drilling will be carried out in this area, which is easily possible given a recent successful capital increase of CAD 8 million.

On January 16, Haywood published its study on F3 Uranium. The analysts see several promising points that make the Company and its project valuable. For one thing, the experienced management team already has a successful track record. Given the high-grade uranium discoveries, a new resource estimate is to be carried out, which will undoubtedly increase the value of the project. In addition, the uranium scarcity from a safe jurisdiction and the increasing uranium demand are highlighted. The target price is CAD 0.55. At the current price of CAD 0.265, there is more than 100% potential.

Nel ASA – Between political uncertainties and growth prospects

Donald Trump's re-election as president is changing the energy industry permanently – and not necessarily in favor of renewable energies. While it is clear that the president has little regard for wind power, it is unclear about hydrogen. For companies like Nel ASA that are heavily invested in hydrogen and operate in the US market, the announced review of tax incentives could have negative consequences. The resulting uncertainty is causing investors to take a cautious approach, as future subsidies for sustainable energies could be on shaky ground.

Despite adverse market conditions, Nel ASA is demonstrating that innovative strength pays off. Just recently, the hydrogen solutions specialist secured a significant order worth USD 7 million: two PEM electrolysers are to be used in a steel mill to produce green hydrogen in the future. This success underscores the industry's confidence in the Company's technological expertise. Nevertheless, management is making cuts, reducing the workforce by around 20%, and halting production at the Herøya plant. The aim is to save costs in order to have more staying power.

Looking ahead to 2025, the situation remains challenging for Nel ASA. Analysts are warning of a possible decline in revenues, which has resulted in a reduction in target prices. Nevertheless, the relaxation of emission standards expected by some experts could open up new growth opportunities. For investors, it remains crucial to keep an eye on political developments and monitor how well Nel ASA can respond to uncertainties while seizing growth opportunities. The stock, which currently trades at NOK 2.23, is not a compelling buy at the moment.

Trump's new energy policy promotes fossil fuels and nuclear power, putting pressure on renewable energies. Despite these developments, RWE is investing heavily in the expansion of renewable energies and aims to play a leading role in Europe by 2030. F3 Uranium is benefiting from the increasing demand for uranium and is reporting high-grade drilling results. Haywood's price target is CAD 0.55. Nel ASA is facing challenges due to political uncertainties. Nevertheless, it recently secured a significant order.