December 29th, 2023 | 07:00 CET
Siemens Energy, Klimat X Developments, Nio - Heavy traffic at the end of the year
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"[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel
Siemens Energy - Tailwind from industry peers
The fact that the stock market year 2023 will end with a significant loss for Siemens Energy shareholders is likely already determined due to the few trading days remaining. The Munich-based company's shares are currently over 32% in the red since the start of the year. Nevertheless, the Company's share price, which got into difficulties this year mainly due to wind power subsidiary Siemens Gamesa, has managed to conjure up a performance of around 85% on the trading floor since the low for the year at the end of October. At EUR 11.90, the share is trading close to the vertical resistance level of EUR 12.09, a breach of which would offer further upside potential to the EUR 13.50 range.
The Siemens Energy share benefited from positive news from its peer group post-Christmas trading. For example, Vestas Wind Systems, a manufacturer of wind turbines based in Aarhus, Denmark, published several major orders. Orders totaling more than 1 GW for two unnamed wind projects in the United States were announced at the end of last week. The first order has a volume of 603 MW and comprises 134 V163-4.5 MW turbines, the latest high-performance wind turbine from Vestas. The second order is also for the V163-4.5 MW turbines, this time 100 units for a 450 MW project. Both orders include the delivery and commissioning of the turbines as well as a 10-year service contract. Delivery of the turbines for both projects is expected to begin in the fourth quarter of 2025, with commissioning of the turbines planned for the second quarter of 2026.
The Danes also received a further order from Australia for a capacity of 254 MW, comprising 41 V162-6.2 MW turbines from the EnVentus Platform. Vestas will also supply the engineering, procurement and construction of the hardware and conclude a 30-year service contract. Delivery of the turbines is expected in the fourth quarter of 2024, with commissioning of the project, which is also undisclosed, scheduled to begin in the fourth quarter of 2025.
Klimat X - Inexhaustible potential
The year 2024 could lead to new breakthroughs for Klimat X, the owner and operator of nature-based carbon assets with a value of around CAD 10 million. The conditions for this are certainly more than favorable. The Canadians are meeting the exploding demand for carbon credits from companies looking to achieve their carbon neutrality goals. Emissions trading is still at the beginning of its super cycle but is expected to increase eightfold by 2030, according to the Boston Consulting Group.
Klimat X Developments focuses on the development of projects to reduce carbon emissions. It does this by investing in the exploration, restoration and management of land and marine systems.
In the last twelve months, according to independent research by Trove, prices for restoration projects in the report "3Q23 Voluntary Carbon Market in Review" have risen by 63% to weighted average prices of almost USD 25 per tonne. The fact that the potential is almost inexhaustible is shown by the statement made by the President of the European Commission, Ursula von der Leyen, in the Financial Times on December 2 of this year: "To get emissions under control, the global carbon price needs to reach an average of USD 85 per tonne by 2030." In addition, Bloomberg reported that investment banks such as Goldman Sachs, JP Morgan Chase and Barclays are starting to finance carbon credit projects in anticipation of a market that could rise to USD 1 billion.
Klimat X has secured its first financing partner, UK-based BP Carbon Trading Limited, for its forest restoration project in Sierra Leone. Under the agreement, USD 2.5 million has been provided to plant and restore 5,000 hectares of degraded land. The reforestation of the first 5,000 hectares is expected to generate around 1.9 million tons of emission certificates over the entire duration of the project. Klimat X aims to reforest over 50,000 hectares of rainforest. Based on the modelling carried out so far, the area has the potential to generate over 35 million tons for the reforestation and protection of forests.
Nio - New innovations on "Nio Day 2023"
Investors responded enthusiastically to the news and innovations announced on this year's "Nio Day 2023", which took place on December 23. This was at least reflected in the share price, which rose by over 10% to USD 9.33. In the short term, there is an opportunity to close the price gap opened in September at USD 10.31.
The expert audience was particularly impressed by the presentation of the new flagship model ET9, which is preparing to position itself in the Chinese market against high-ranking competitors such as BMW's 7 Series, the Mercedes-Benz S-Class and the Mercedes-Benz Maybach S680. Nio unveiled the ET9, a car equipped with Aquila 2.0 technology, a 900V ultra-high-voltage charging platform and the innovative 46105 battery. This battery surprises with a high energy density of 292 watt-hours per kg and enables fast 5C charging. After just five minutes at a 640 kWh charging station, the ET9 can reach a range of 255 km. The ET9 is the first model in China to use both the 900V charging platform and the specially developed 46105 cells.
In addition, the Chinese company's first 5nm automotive processor is characterized by its 50 billion transistors and 32-core CPUs, which should enable it to compete with the performance of four Nvidia "Drive Orin chips". Nio is thus following in the footsteps of Tesla as the second automotive company to rely on a self-developed chip for autonomous driving.
Siemens Energy is still on the upswing and is benefiting from the publication of two significant orders from competitors. In contrast, investors are celebrating the latest innovations from Chinese car manufacturer Nio. Klimat X has an excellent position in the booming emissions trading market and could benefit disproportionately in the long term.
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