NEL soars after Olaf Scholz comment

Nel (NEL.NO) is a Norwegian hydrogen infrastructure and technology company. Shares traded higher today on comments from the German Chancellor. The company is the world’s largest producer of electrolysers:

  • Olaf Scholz, speaking in Budnestag on the energy crisis in Europe, indicated that “hydrogen is the gas of the future, we are going to create a huge boom”. Nel participates in the launch of the first hydrogen train in Germany, as part of the H2 West Coast Group.
  • In cooperation with the hydrogen truck manufacturer Nikola (NKLA.US), the company plans to develop a hydrogen infrastructure in the United States (H2Station, electrolysers). So far, Nel has set up dozens of hydrogen stations in Norway.
  • In July this year, the company received an order from the United States for $45.4 million worth of electrolyser equipment. The order covers 200 MW of alkaline electrolyzer equipment for industrial applications. Production is expected to begin in February 2023, with delivery completed by mid-2024. Nel’s US client remained anonymous.
  • In 1988, Nel entered the market as the first manufacturer in the world to launch non-asbestos alkaline chlorinators.

Nel-Shares (NEL.NO), interval H4. We can see the stock gaining momentum from Scholz’s comments, and demand has managed to rally above the 200 session average. The main medium-term resistance for the company is the levels around NOK 16.5 per share, where a strong offer has been triggered on several occasions and where the 23.6% Fibonacci retracement is executing. With the February pullback, the sudden rise in the RSI from around 30 to above 50 hinted at a stronger uptrend. Source: xStation5

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