In the past week, the Nordic impact sectors were driven by increased optimism. Many stocks delivered double digit returns. We look closer at the CO2 and carbon Capture sector this week. It consist of companies that not only have the potential to reduce emissions but essentially to capture and store harmful emissions thus lowering the greenhouse effect. The best-performing stock delivered a nearly 70% return the past week and the best stock of the year has almost 300% in YTD return.
We have launched a brand new newsletter that dives deep into impact stocks in the Nordics. The newsletter can help you invest more sustainably in the businesses of tomorrow. We track the development of more than 100 ompanies within multiple impact sectors including energy production, waste management, and carbon capture. We follow over 100 large and small companies
The Food & Beverage sector was the best-performing sector with a 7% return driven by a strong performance of Biofish Holding and Ekobot. In the other end of the spectrum, the waste management sector as well as the mobility sector fell 1% each. Year-to-date all sectors continue to be down by double digits – and the worst sector being Mobility following the past two week’s performance.
The best performing stocks have generated more than 200% in return YTD and the best performing stock, servicing the fast growing biogas sector, has generated almost 300%.
Overview of the performance of each sector the past week
Top 10 best performing impact stocks of the week
The past week, Hynion, a Nowegian developer and operator of hydrogren stations rose 68% following start of construction of a hydrogen refueling station. Ekobot, a developer of robots for farming, rose 52% after a major shareholder increased his stake in the company significantly. Finally, Biofish Holding ASA, a Norwegian fishing farmer, rose 40% following their Q3-results and several insider buys.
The 10 best performing stocks the past week
Carbon Capture – Potential CO2 killer
The CO2 & Carbon Capture sector is a critical player in combating climate change by developing technologies that capture, reduce and store carbon dioxide emissions. Positioned at the forefront of environmental impact sectors, companies within this industry play a crucial role in developing and implementing technologies to capture and contain carbon dioxide (CO2) emissions, thereby lowering the greenhouse effect. However, this is also one of the less-developed sectors with added risk as the main players are still early stage companies. Some sectors can reduce CO2 emissions, while the CO2 & carbon capture sector can potentially eliminate the emissions.
The sector comprises of six companies. Year-to-date, the sector has delivered a return of -16% with 4 out of 6 companies delivering a positive return. The best-performing stock in the sector is Danish Photocat, which is specializing in NoX removal, delivering a 38% return. Every impact sector has delivered a negative return in the past year. However, the Carbon Capture has been the least impacted one with only a -16% return.
Year-to-Date return for CO2 & Carbon Capture stocks
A large and a successfull energy producing company
Aker Carbon Capture ASA (Nordnet) is a pure-play carbon capture company with solutions, services, and technologies serving a range of industries, including the cement, bio and waste-to-energy, gas-to-power, and blue hydrogen segments. Aker Carbon Capture’s proprietary carbon-capture technology offers an environmentally friendly solution for reducing and removing CO₂ emissions. Aker Carbon Capture has, among other things, entered into an agreement with Ørsted for the delivery of equipment worth over 200 MEUR.
The company has a market cap. of 7,885 MNOK. For the first nine months of 2023, the company delivered revenues of 1,032 MNOK compared to 542 MNOK for the same period in 2022. Furthermore, net profit was improved from -173 MNOK to -152 MNOK. The order backlog currently stands at 3 BNNOK. Aker Carbon Capture has done well year-to-date with a return of 12%.
Capsol Technologies ASA (Nordnet) is a bit similar to Aker Carbon Capture, but have a larger focus on industrial companies. The company develops technical solutions that are used to capture carbon dioxide from power plants and industrial plants. The solutions are licensed out either directly to customers or through industrial partners globally. Key segments include cement, biomass, energy-from-waste, power generation, and large industrial. Capsol is targeting significant long-term value creation with a scalable model with an ambition of 5-10% technology licensing market share in 2030, EUR 7-12 in licensing revenue per tonne installed capacity, and 40-60% pre-tax profit margin.
The company has a market cap of 688 MNOK. In the first nine months of 2023, they delivered revenues of 22.9 MNOK vs. 3.9 MNOK in the same period in 2022. The net income rose to -34 MNOK from -24,4 MNOK. Capsol Technologies is in the growth phase with lots of growth to come with expansions in the U.S. and the Middle East and new projectsin 2024.
Overview of the share price development of Aker Carbon Capture ASA and Capsol Technologies ASA the past year
Overview of all sectors year-to-date
The waste management sector, characterized by its essential and non-cyclical nature, often presents a stable investment opportunity with long-term potential, driven by increasing environmental awareness, regulatory demands, and the growing need for efficient waste disposal and recycling solutions. Year-to-date, Cambi ASA has significantly outperformed the rest of the sector with a 212% increase.
Overview of the return year-to-date for the stocks in the Waste Management sector
Energy Production & Storage
The Energy Production and Storage sector offers substantial investment opportunities, as it stands at the forefront of the transition towards renewable energy sources, driven by climate concerns and technological advancements. Year-to-date, only 3 stocks have delivered a positive return.
Overview of the return year-to-date for the stocks in the Energy Production & Storage sector
Energy Production Equipment & Services
The Energy Production Equipment & Services is providing technical equipment and machines to other energy producing companies such as Ørsted. The sector is to some extent influenced by oil and gas price fluctuations and industry trends. Year to date, BPC Instruments AB, delivering technologies and services to biogas plants, has performed the best with a 298% increase – the best performance of all the Nordic Impact stocks, and is trading at an all time high.
Overview of the return year-to-date for the stocks in the Energy Production Equipment & Services sector
Power2X & Fuel Cells
The Power-to-X and Fuel Cells sector offers exciting investment opportunities in the evolving landscape of clean and sustainable energy technologies, but investors should also be mindful of the evolving regulatory and competitive landscape in this rapidly advancing field. None of the stocks have delivered a positive return year-to-date.
Overview of the return year-to-date for the stocks in the Power2X & Fuel Cells sector
Food & Beverages
The food and beverages sector is heavily driven by consumer demand and having strong brands is a major advantage. Investors should focus on considering factors such as changing consumer preferences, health and sustainability trends, and global supply chain dynamics to identify promising opportunities. Nordic Aqua Partners AS within the fish industry has delivered a return of 43%.
Overview of the return year-to-date for the stocks in the Food & Beverages sector
CO2 & Carbon Capture
The CO2 and Carbon Capture sector presents compelling investment opportunities for companies involved in capturing and removing carbon dioxide from the atmosphere. It is a small sector consisting of only 6 stocks, with Photocat A/S as the best performing year-to-date.
Overview of the return year-to-date for the stocks in the CO2 & Carbon Capture sector
The mobility sector includes among others ride-sharing platforms and the development of electric vehicles with the purpose of lowering emissions and costs for consumers while increasing flexibility. Mobility is the smallest sector we track with totalling 5 stocks. None of the companies have delivered a positive return year-to-date.
Overview of the return year-to-date for the stocks in the Mobility sector