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We need energy storage…and companies are respondingRecently, the following headline caught my eye: ‘Tesla Supplier Panasonic Plans Additional $4 Billion EV Plant in U.S.’ 1 Even in an environment with significant inflation, and a monetary policy that may continue raising rates for some time, significant capital expenditure continues within the battery space. Panasonic is particularly notable because, in July 2022, it announced a plan to build a roughly $4 billion plant in Kansas. Now, it is announcing another plan for a roughly $4 billion plant in Oklahoma2. The concept of securing certain supply chains globally has been a major theme in 2022, even if it’s been obscured by inflation, US Federal Reserve activities or the possibility of a recession. Semiconductors have been a big focus on that list, but so have the batteries that support the ongoing adoption of electric vehicles. Geopolitics are always in the background of these supply chain considerations. While Panasonic (Japan) and LG Energy Solution Ltd. (South Korea) have made announcements in 2022 about plans to build plants directly in the US, Contemporary Amperex Technology Co. (CATL)—China’s top electric vehicle (EV) battery maker—has not been able to do the same. There was a plan in place, but US-China tensions have recently intensified, leading to postponement3. Whilst drafting this blog, another headline appeared: ‘Honda, LG Energy Plan $4.4 Billion EV Battery Factory in U.S4.’ It’s certainly an area in focus. Where is EV adoption in the US currently? For the full US market, roughly 6% of new vehicles are electric. In California, this number was 16% in the second quarter of 20225. There is an interesting contrast between California and other states in the US. The European Union (EU) announced that new cars must be free from emissions after 20356. Many of the individual countries had already made similar plans. Norway’s government has a plan to not sell any new petrol or diesel cars from 2025 onwards, and 70% of new cars sold in Norway in 2020 were electric7. The individual states across the US, on the other hand, have not signalled commitments anywhere close to this, at least not yet…with the exception of (you guessed it), California! New regulations applying to new cars, pickup trucks and SUVs would establish annual thresholds for the share of zero-emissions vehicles automakers must sell in the state each year8. 35% in 2026 68% in 2030 100% in 2035 The Clean Air Act of 1970 granted California a waiver to set its own environmental rules, and this allows for stricter standards than other states across the US. Other states can adopt California’s rules. For those following politics9: The Trump Administration in 2019 stripped California of its waiver. Some companies still voluntarily sought to meet California’s stricter standards, but there was a division. The Biden Administration then gave California back its waiver in March 2022, which allowed for these new rules. Depending on the path of US politics, we’ll have to see how the story continues to evolve but, with each passing year, it is doubtful that politicians would be able to fully stop the trend of EV adoption. Maybe it would slow and certain states would hold out, but even the automakers themselves are noting a desire to go fully electric in their production within the coming decades. Hydrogen? One thing we know about hydrogen is that the market loves to ‘hype’ this concept. Even though the full development of an infrastructure that would support use of hydrogen at scale will take years—possibly a lot of years—at the end of 2020 and start of 2021 many of the firms focused on hydrogen had sky-high valuations10. The market wanted to price these firms as though the potential had already been realised, so we know that returns have been much harder to come by in the space in most of 2021 and 2022 so far. Plug Power is one such company and, on 25 August 2022, it agreed to provide 10,950 tonnes per year of liquid green hydrogen starting in 202511. ‘Green hydrogen’ refers to hydrogen that has been produced using renewable, carbon-emission-free energy. If Amazon wants to decarbonise its operations and use hydrogen to do it, it’s important that the production of the hydrogen isn’t simply moving the emission generation from Amazon’s operations toward Amazon’s energy suppliers. Amazon has committed to be net-zero in terms of carbon emissions by 2040. As a rough guide, this amount of hydrogen that Plug Power would supply could power between 1,000 and 2,000 heavy duty trucks over the course of a year12. It is an area of active debate and development regarding the best way to decarbonise heavy-duty trucks: Current lithium-ion battery technology could work, but batteries would be very heavy and the need to stop for charging could prove a challenge on longer-haul trips. Charging massive, semi-truck sized batteries could also take much longer than passenger cars. Hydrogen offers interesting alternative benefits but, currently, the discussion should focus on the supply chain. First, the infrastructure of hydrogen fuelling stations needs to be build out, securing the supply of hydrogen on major routes. Second, the production of hydrogen needs to be green, or else all the companies trying to use hydrogen as part of net-zero emissions plans would have to look elsewhere. Our take on hydrogen for the moment is one of reasonable optimism, recognising the benefits but, at the same time, not getting too excited too quickly. Conclusion: countries want to be energy independent Decades ago, the only way countries could be energy independent was to find massive deposits of oil. While we still use fossil fuels globally, energy independence in the coming decades will likely look quite different, and the countries that secure the best possible energy storage technologies could be in the best position as they deploy all sorts of renewable energy technologies to power their needs. To this end, there are going to be a lot of advances in regulations, energy storage technologies and all the while capital expenditures to build out all sorts of infrastructure and production capability. Sources 1 Source: Davis, River & Rebecca Elliott. “Tesla Supplier Panasonic Plans Additional $4 Billion EV Battery Plant in U.S.” Wall Street Journal. 26 August 2022. 2 Source: Davis, 26 August 2022. 3 Source: Davis, 26 August 2022. 4 Source: Davis, River & Dasl Yoon. “Honda, LG Energy Plan $4.4 Billion EV Battery Factory in U.S.” Wall Street Journal. 29 August 2022. 5 Source: Colias, Mike & Christine Mai-Duc. “California Approves Rules to Ban Gasoline-Powered Cars by 2035.” Wall Street Journal. 25 August 2022. 6 Source: eu-agrees-new-cars-must-be-emissions-free-after-2035 7 Source: statista -electric-and-hybrid-cars 8 Source: Colias, 25 August 2022. 9 Source: Colias, 25 August 2022. 10 Source: Bloomberg. 11 Source: Palumbo, Angela & Al Root. “Plug Power Stock Jumps on Hydrogen Supply Deal with Amazon.” Barron’s. 25 August 2022. 12 Source: Palumbo, 25 August 2022.
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by aneekaguptaWTE
Where is Enphase Energy Moving Next?Enphase Energy NASDAQ:ENPH is coming off an excellent month of June 2021, up over 30% and 82% YTD. Now, we sit about 30-days from earnings with the street estimating an EPS of $0.42. Is there another period of time where ENPH faced a similar situation and chart pattern? Yes, from mid-September 2020, until mid-October 2020, ENPH ran up over 63% and reached its peaks about 30-days before earnings. Looking back at the chart could help us understand where ENPH might be heading during July 2021. Solar and energy storage stocks have been heating up as governments push climate agendas including possible tax credits for each stage of the solar manufacturing supply chain, tax credits for homeowners to install solar power, and other possible incentives and initiatives. Another company that has benefitted from the current environment is Generac Holdings NYSE:GNRC . They also had an amazing month of June 2021, up over 26% and 84% YTD. Sure, with GNRC the weather plays a role as they sell many generators, but they are also ramping up on their energy storage solutions just like ENPH. ENPH has a premium micro-inverter product and a growing energy storage business. This has given many analysts reason to place a buy rating on ENPH. Now looking back at the chart. Comparing the two time periods, then and now, you can see that after the runup in 2020, ENPH consolidated up until earnings were released, and for about 7-days thereafter. Then, there was a spike in volume setting off a bull run that finished the year of 2020 and pushed the stock even higher into 2021. This rally set a new all-time high on January 7th, then another all-time high of $229 on February 10th (right when earnings were released). Next, we had the great tech rotation sending any stock related to technology lower over the next 90-days. ENPH hit its low of $108 on May 11th. Since reaching the May 11th low, ENPH has climbed 73%, just another 18% and ENPH will be hitting a new ATH. Now, here's what you came for. Where is ENPH moving next? Well, if history can be our guide, and yes, history doesn't repeat, history rhymes, then we should expect ENPH to start consolidating with a mix of green and red days until earnings. One thing on the chart that is different this time around is lower volume. Now after earnings are released it's anyone's guess. A beat on earnings could push ENPH to new all-time highs and a miss could give long-term investors a great entry point on a stock currently trading at a premium. Now I will hand it off to you. Where do you think Enphase Energy is moving next?
NASDAQ:ENPH
by TickerTimeNews
Azelio towards first target around 80 SEK My take on Azelio. If they follow through with orders in Q2 which is their plan and they've delivered accordingly to their plans with precision so far. Both the technical and fundamental pieces are in place here for a breakout. Biggest owner bought more shares at 52.90 and the company had a new issue of shares (596 million SEK) at around 56 SEK in march 2021. There's always a risk to break down on the downside as well of course. Such a thing could be due to maybe a latency due to restrictions and more lockdowns etc. There's always a risk. On the long term though I see a bright outlook for this company. This is no financial advice, only my 2 cents.
ALong
by UnknownUnicorn1081786
Star Peak Energy Transition Corp. STPK in business with Stem INCWhile NIO is retracing too, Star Peak Energy Transition Corp., after making a merger with Stem Inc., and trying to become an industry leader in the energy storage market, is going to consolidating after the end of this first pullback from 38$ top to 32$ (15/01/21). The stock has since risen and now rests around a $1.63B market cap valuation, just a fraction of the potentially trillion dollar industry estimated to take shape by 2050. After receiving the price target of 100$ from a Citron's report and ending it by saying: "As a result, we expect STPK to become a core holding of every ESG ETF in the market and for the float to be quickly gobbled up sending the stock materially higher " And concluding with the statement: "See you at over $100." , I think it can take the flight to the moon after a short consolidating period. Star Peak is the cutting-edge company that is going to use Stem Inc.'s AI to provide strongly advanced energy storage products able to Star Peak is a blank check company incorporated in Delaware for the purpose of effecting a merger, capital stock exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Buying alerts at 24.86$ and 30$
SLong
by PitMoon