September 25th, 2023 | 07:10 CEST
ThyssenKrupp Nucera, Klimat X, Ballard Power - Gigantic potential
Table of contents:
ThyssenKrupp Nucera - Analysts optimistic
The ThyssenKrupp Nucera share price has resembled a tragedy since the IPO at the beginning of July. Launched with great anticipatory praise, the Company, which claims to offer the world's leading technology for electrolysis plants, lost around 23% in value and is trading near its all-time low at EUR 19.60. From a chart-technical perspective, there is no sign of a trend reversal. However, several analyst opinions clearly show the given potential.
In a positive stance compared to the peer group, the analysis firm Bernstein, led by expert Deepa Venkateswaran, expressed a bullish view of the SDAX-listed company. The analyst views ThyssenKrupp Nucera as a buy candidate with a price target of EUR 28. ThyssenKrupp Nucera is seen as a market leader in terms of order backlog, poised to benefit from the growth of green hydrogen through industrial decarbonization. In contrast, Bernstein strongly criticized the Norwegian competitor, Nel ASA, stating: "Enough with the amateurs, the professionals are here." As a result, the opinion on Nel ASA was downgraded from previously "Outperform" to "Underperform".
In doing so, the analyst firm cites Nel's slowing order momentum and an unconvincing "competitive moat" in alkali technology. Compared to Nucera's strong order backlog, Nel's order intake has slowed in recent quarters, with electrolyser orders down 58% quarter-over-quarter in the second quarter. Although Nel's management touts a healthy project pipeline, "the lack of successful conversion of pipeline projects into firm orders leads to our concern about the Company's future growth path," Bernstein said.
Looking at the product range, the financial experts believe Nucera's 20 MW alkaline module is viable, while Nel's A3880 ALK electrolyser is efficient but requires a footprint 7.5 times larger than Nucera's Scalum.
Klimat X - Positioned in the growth market
Industry experts agree that the market for CO2 certificates will explode in the next few years. Studies by Shell and the Boston Consulting Group predict growth by a factor of 5 to 8. However, companies where investors can profit directly are scarce on the stock market. Klimat X Developments, a leading provider of high-value carbon credits derived exclusively from afforestation and reforestation projects, offers direct participation in promising projects through its stock exchange listing in Toronto and Frankfurt.
Klimat X owns and operates nature-based carbon assets, serving the growing demand for carbon credits from companies seeking to meet their net-zero targets. The Company accomplishes this by investing in the exploration, restoration, and management of land and marine systems that can either be protected to improve greenhouse gas sequestration or restored from a degraded state to fully productive ecosystems.
In Guyana, for example, Klimat X not only preserves forests but also produces coconut water. This generates further income and creates job opportunities in an area where each new position benefits the community. The project has already attracted attention, leading to the development of a similar project in Suriname at the request of the local government. In Mexico, another project is to be developed to reconstruct mangrove forests. A positive aspect is that Klimat X does not have to undertake equity financing to acquire the projects. The required capital is provided by customers in advance in exchange for CO2 certificates. This eliminates any dilution of the share structure.
The market capitalization of the innovative company is currently CAD 11.25 million. Should the market for CO2 certificates grow exponentially as predicted, Klimat X is ideally positioned. You can read an in-depth interview with CEO, James Tansey here.
Ballard Power - At annual low
Parallel to the hydrogen industry, the shares of the fuel cell manufacturer Ballard Power have also lost a lot of ground in recent months. Since the beginning of February alone, the paper of the Canadian market leader has lost around 50% in value and is hovering at the price level of 2019, having reached a new low for the year at USD 3.65.
At the same time, the Burnbary-based company continues to be in a leading role with regard to the development of commercial vehicles with hydrogen fuel technology. Together with commercial vehicle manufacturer Ford Trucks, the Company is to develop a hydrogen-powered F-Max truck that can be used for test purposes from 2025.
Ballard Power will supply two fuel cells for the truck, each with an output of 120 kilowatts. Another nice side effect is that the project is being funded as part of the ZEFES project, which has set itself the task of decarbonizing heavy-duty transport.
The Canadians have also been developing zero-emission hydrogen-electric commercial vehicle platforms with Quantron AG, a German specialist in sustainable passenger and freight transport, since late 2021. The core of the German-Canadian partnership is the integration of Ballard's FCmove™ high-performance fuel cell modules into QUANTRON vehicles. These include the 44-ton QUANTRON QHM FCEV truck - the current European range champion with 54 KG of H2 at 700 bar - and the QUANTRON QLI FCEV light van. Both zero-emission vehicles feature a significantly longer range and shorter refueling times compared to battery-electric models.
Despite the excellent future prospects, companies in the hydrogen sector are losing disproportionately. While analysts are negative on Nel ASA, they see potential for ThyssenKrupp subsidiary Nucera. Due to the exploding market for CO2 certificates, the Klimat X share, which is also listed in Germany, is ideally positioned.
Conflict of interest
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