Energy Market in Focus: 2G Energy, A.H.T. Syngas Technology and SFC Energy

SFC Energy: Back on the Path to Growth

SFC Energy AG can almost be called a stock market veteran in the small-cap sector. The Upper Bavarian company went public on the Prime Standard of the Frankfurt Stock Exchange in May 2007 for EUR 37 per share. Today, the stock is trading at just over EUR 20, meaning that early investors have not made any money—at least not if they followed a “Buy and Hold” strategy.

But today, alternative solutions to the energy crisis are becoming increasingly urgent for companies. The costs of diesel, natural gas, and other fossil fuels are rising rapidly, partly due to disruptions in Russian supply chains and in the Persian Gulf. On the other hand, this summer has also shown just how much Europe is suffering from climate change and what costs this entails for the economy. Reducing the CO₂ footprint will likely remain a priority in the coming years.

SFC has focused on off-grid, decentralized power supply solutions based on fuel cells. The company supplies autonomous small-scale energy systems for all locations—without any connection to the power grid. Its main products are direct methanol and hydrogen fuel cells, as well as the corresponding power electronics. These are intended to replace diesel generators. The target markets are vast. In addition to the security sector (military, border control, police), SFC is targeting industry, including oil and gas companies. Last but not least, recreational vehicles and remote cabins represent another customer segment. The Bavarian company generates recurring revenue through the sale of the necessary methanol fuel cartridges, spare parts, and service and maintenance contracts.

In the first half of the year, this business model generated EUR 82.4 million in revenue, an increase of about 12%. EBIT, however, more than tripled to EUR 14 million. The EBIT margin of 17% is impressive. For the full year, management is targeting revenue of EUR 166 to 175 million. The stock could benefit from inflation in energy prices. Following a sharp rise at the beginning of the year, it is currently trading sideways.

A.H.T. Syngas Technology: For Fans of German Micro-Caps

Recurring revenue is what the stock market wants to see. This is because recurring revenue, from sources such as subscriptions, Software-as-a-Service, or maintenance contracts, makes a company’s business predictable, generally lowers costs, and increases visibility into future earnings. As a result, these stocks are typically granted a higher valuation multiple.

Among German small-cap stocks, A.H.T. Syngas Technology has so far suffered from the disadvantage of primarily receiving one-off orders rather than recurring revenue. This does not make it easy for investors. Yet at its current price level, the stock offers considerable potential. After all, its market capitalization is just under EUR 7 million. For many investors, the stock is still flying under the radar.

But that could change. A.H.T. Syngas Technology is working on an exciting technology that has already been tested. The company has developed a patented dual-combustion process. This allows waste materials such as wood scraps, fermentation residues, sewage sludge, and other biological substances to be thermochemically converted into a particularly pure synthesis gas. The major advantage is that the plants generate electricity, heat, or gas directly on-site. This allows industrial companies in particular to replace fossil fuels, and especially expensive natural gas, while utilizing waste materials in the process and simultaneously reducing their dependence on utility grids. That saves money. The proximity to production sites makes it possible, above all, for small companies to meet their energy needs. And the process has a particular advantage: while other methods require high-quality, standardized wood chips, the dual-fire method allows the use of a wide range of feedstocks, including briquetted agricultural waste such as manure and sewage sludge.

The Rhineland-based company aims to expand this “Waste-to-Value” model. A.H.T. is targeting the attractive niche of small and medium-sized customers, including SMBs, municipalities and local utilities that favour decentralized solutions. To reduce revenue fluctuations, the company now aims to make the transition from a pure project developer to an energy partner. The plan is to operate selected plants in-house with partners, which promises recurring revenue and offers greater earnings visibility for investors.

And that brings us back to the stock market. A.H.T. Syngas Technology’s share price has nearly halved since its annual high in February. A rebound has been underway for a few weeks now. Even a single large order or a new partnership could push the stock back toward its previous highs. However, analyst Cosmin Filker of GBC Research believes the stock has significantly more potential. He has set a price target of EUR 8.50, meaning the share has the potential to more than double in value.

2G Energy: Growth is Picking Up

Last week, 2G Energy held its annual shareholders’ meeting in Ahaus. Management had a few positive surprises in store. The company now anticipates revenue growth of 20% by 2028; previously, only 10% had been forecast. The EBIT margin is expected to reach 10%. 2G Energy is actually known for its rather conservative forecasts. This points to strong momentum and good visibility regarding orders. CEO Pablo Hofelich, who took over the role from the founder nearly a year ago, is extremely optimistic about the future. In the biomass segment, order intake since Q4 2025 is expected to boost revenue in the current second half of the year. According to Hofelich, the company is still only at the beginning of its international expansion.

Orders from the US in the data center sector have recently sparked a great deal of excitement. Orders in the triple-digit millions have already been reported here. 2G now also aims to benefit from demand for its decentralized products in Europe and elsewhere. The company is also relatively new to the mining sector, where it has made a successful start in Australia. 60 MW are already in the order book, and the company plans to expand into other regions here.

CEO Pablo Hofelich sees 2G Energy growing into “a new dimension” due to high demand. The stock recently pulled back from its all-time high. It is not cheaply valued. However, if orders continue to come in as they have and implementation is successful, the company could see strong growth here.

2G Energy raised expectations at its most recent annual shareholders’ meeting. Whether for data centers or a remote gold mine: its products are in demand. A.H.T. Syngas Technology aims to make the transition to recurring revenue and reappear on the radar of small-cap investors. With SFC, investors can bet on fuel cells. This stock market veteran is growing again.

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