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Yara (YARIY) Invests in Dynelectro to Decarbonize Production

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Yara International ASA's (YARIY - Free Report) venture investment team, Yara Growth Ventures, has invested in Dynelectro, which develops technology to exploit the potential of solid oxide electrolysis (SOE). While SOE produces renewable hydrogen and e-fuels with the best feasible efficiencies, it has previously experienced system longevity difficulties. The initiative is part of Yara's efforts to decarbonize fertilizer production and enable the hydrogen economy.

Dynelectro's technique significantly extends the life of SOE systems from 2 to 10 years, and it enables the integration of SOE with intermittent renewable electricity, which is a critical condition for large-scale adoption.

Decarbonizing the fertilizer value chain is a critical component of ensuring a sustainable global food supply and one of the company's key goals. Investing in entities like Dynelectro helps to fulfill that plan by promoting breakthrough technologies for producing low-emission end products at a reasonable cost.

The investment entails following the company's seed round, which was led in May 2023 by The Export and Investment Fund of Denmark, which is Denmark's national promotional bank and export credit agency, with contributions from Vsquared Ventures, a leading European deep-tech fund and additional local venture investors. The funds will be used to support demonstration projects and further technological development.

Shares of Yara have lost 28.2% over the past year compared with a 25.9% decline of its industry.

Zacks Investment Research
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Zacks Rank & Key Picks

Yara currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .

United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 77% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 52.3% in the past year.

The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1.  AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. AMR shares are up around 134.7% in a year.

 

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