Stocks for climate change: Nel ASA, Nordex, Klimat X Developments

Klimat X: Exciting business model and great opportunity for investors

Klimat X Developments combines several exciting and enormously important topics: Fighting climate change, sustainable agriculture and economic support for remote regions. And, of course, this should also generate an attractive return. This mix aptly describes the business model of the Canadian specialist for CO2 certificates. On the other hand, the run on CO2 certificates has only just begun. The demand from companies that want to become climate-neutral already clearly exceeds the supply. According to a study by Shell and Boston Consulting, the market volume could increase eightfold by 2030. This should mean that Klimat X and the entire industry are facing golden times. In an Interview with Kapitalerhöhungen.de, Klimat X CEO James Tansey even considers a tenfold increase possible and explains the Company's strategy in detail.

So, what is Klimat X's business model? The main business area is the protection of forests and mangroves from deforestation. If this has unfortunately already happened, they are reforested. The CO2 certificates thus continuously generated are then sold to companies all over the world. As a side income, agriculture can come into play. For example, Klimat X not only protects forests in Guyana but also produces coconut water. This generates additional income and creates jobs in a region where every new job helps the population. The project has already made waves, and now, at the urging of the local government, something similar is to be established in Sierra Leone. The Canadians are also active in Mexico.

On the stock market, the young company is only valued at around CAD 10 million. Interestingly, even the management participated in the latest capital increase. Due to the exciting business model and the prospects for CO2 certificates, investors could position themselves at an early stage. The full CEO interview can be found here. It is worth a read.

Nel: New impetus?

Nel demonstrates the opportunities that innovative companies in growth markets can offer. Those who got in early and exited at the right time saw their capital increase up to tenfold. However, the Company and the shares are currently facing challenges. While revenue growth has finally improved this year, Nel is still struggling to reduce its losses. The chart is also severely battered. The stock can hold above the NOK 10 level, but woe betide if it falls below this support level.

Support for Nel, Plug Power & Co. continues to come from the political side. Hydrogen is being promoted worldwide for the energy mix of the future. But more is needed. Analysts are also somewhat skeptical at present. According to marketscreener.com, 10 experts recommend buying or increasing the Nel share. In contrast, 12 analysts recommend selling or, at most, holding the share. For a growth stock, this is a negative ratio, as analysts are traditionally more positive. The share could receive new impetus from the Q3 figures. However, these are not scheduled until October 25.

Nordex with success in Spain

There were new impulses at Nordex last week. The wind turbine manufacturer landed an order from BayWa, which comprises 24 turbines of the type N163/5.X of the Delta4000 series. It is to be delivered to a wind farm in Spain. In addition, Nordex will be responsible for the maintenance of the turbines over the next 25 years.

The wind farm is being built by BayWa and its Spanish partner CEAR near Zaragoza. Nordex will install the turbines with a total capacity of 5.9 MW from summer 2024. The completion is then scheduled to take place in the spring of 2025. Nordex CEO Patxi Landa: "We thank BayWa for their confidence in our technology, and after recently securing projects in Scotland and France, we can now further advance the energy transition in Spain in partnership with BayWa." Nordex claims to have 3.18 GW of turbines in operation in Spain to date.

Steve Packwood, Regional Director Wind Projects EMEA at BayWa r.e.: "We are delighted to realize this milestone together with our long-standing partner Nordex in one of the most important markets for the energy transition in Europe. Large wind farms like Rueda Sur are essential in achieving climate targets. They are important drivers for the further development of rural regions, sustainable change and job creation in the country."

The fight against climate change offers enormous opportunities for shareholders, and timing is crucial. In the case of CO2 certificates, one cannot yet speak of a hype, which is a good thing. This means the brave can get in early with Klimat X before the topic gains momentum. At Nel, the feared capital increase is putting pressure on the share. Clarity would help here. As for Nordex, there is currently no reason to buy. Although the Company regularly wins orders, it is too small by international standards.