Nordex: The Wind Giant in the Battle for Margins
When one thinks of renewable energy, it is hard, if not impossible, to ignore Nordex. The company is a true veteran of the industry. Its massive turbines spin around the globe, producing clean electricity for millions of households. But for shareholders, the ride has often been a rough one in recent years. Nordex is battling in a market characterized by high steel prices and complex supply chains. Every order is a major undertaking. On-site installations are expensive and risky. While margins are slowly improving, capital intensity remains enormous. It takes money to make even more money – just like the traditional hardware business.
Nordex has stabilized—that is the good news. The order books are full. Governments worldwide are clamoring for more wind power. But the competition is not sleeping, and China is pushing into the European market with low-cost models. Nordex must leverage its technological superiority here. It is a game of timing and efficiency. When investing, one is betting on the backbone of the energy transition. But patience is required. Maintenance contracts are an advantage, as they generate predictable recurring revenue. The wind blows steadily, but returns will still have to be hard-won in the future. Nordex has performed well recently, and a consolidation could be on the horizon.
Nel ASA: Between Hydrogen Euphoria and Harsh Reality
If Nordex is the wind, then Nel ASA wants to be the container that stores this energy. Hydrogen is considered the gold of the future, a technology of the future. Nel ASA from Norway is one of the best-known pioneers in this field. Its electrolysers are legendary. The imagination invites us to dream and knows no bounds: green steel production, emission-free shipping, massive energy storage. It all sounds fantastic on paper. But the stock market has punished Nel ASA harshly in the past. The path from vision to profitable mass-market business is very rocky. The costs of scaling up production are enormous. Many projects are delayed because the infrastructure isn’t ready yet.
Investors in Nel ASA continue to hope for a breakthrough. Each new partnership is viewed positively, yet the bottom line still reflects ongoing losses. The company has yet to demonstrate that it can compete not only technologically, but also on a sustainable economic basis. At times, the stock has faced significant selling pressure. An investment here ultimately reflects a conviction in the large-scale transformation of the global energy system—an opportunity with substantial long-term potential, but also elevated execution risk.
While Nel ASA is still tinkering with the machines of the future, there is one company that has long since secured a solid share of the entire industry’s success. A player that not only builds the “hardware” but also reaps the profits itself.
RE Royalties: The “Financial Genius” of the Energy Transition
This brings us to RE Royalties, a company that is rewriting the rules. While Nordex and Nel ASA are battling it out at wind turbine construction sites and electrolyser labs, RE Royalties is sitting in Vancouver, counting the revenue. The concept is simple yet clever: royalty financing, familiar from the mining or pharmaceutical industries. RE Royalties provides capital to developers of wind, solar, or hydro projects. In return, they receive a percentage of future revenues. This is great for project owners because they do not have to sell shares in their company. And it is good for RE Royalties because they have a direct stake in revenue without having to bear the operational risk of a construction site.
The latest news from RE Royalties is also interesting. Just three days ago, on March 27, 2026, the board announced a “strategic review.” This is often a precursor to something bigger. Together with experts from PricewaterhouseCoopers (PwC), they are examining how to maximize value for shareholders. This could involve a sale of the company, a strategic partnership, or an optimization of the capital structure. CEO Bernard Tan and his team know exactly what they are doing as they enter their eleventh fiscal year. The pipeline is fully loaded. There is talk of letters of intent totaling CAD 20 million and an additional CAD 200 million in potential investments currently under review.
Further evidence of its clout is the announcement from February 9, 2026. RE Royalties has invested a second tranche of USD 800,000 in a solar portfolio from Solaris Energy. These projects are spread across the US, from California to Maine.
The beauty of this is that RE Royalties is securing long-term revenue here for 25 years and beyond. This is predictable income that flows into the coffers month after month, similar to Nordex’s maintenance contracts. Solaris CEO Nick Perugini expressly praised the partnership. RE Royalties is not just a financier, but an enabler.
The chart speaks for itself. The stock has recently doubled from around CAD 0.20 to over CAD 0.40. We are now seeing four green candles in a row. This shows that investor interest is surging. Currently, the price is struggling with horizontal resistance in the range of CAD 0.43 to CAD 0.45. This is a perfectly normal pause after such a rally. But now things are getting exciting: if the stock breaks above the CAD 0.50 mark, the path upward should be clear. Many market participants then see potential up to CAD 0.80. From current levels, that would be nearly another doubling. So those who missed the first rally might now have another chance. Of course, always with an appropriate stop and position size.**
The story of RE Royalties is also a very personal one. Bernard Tan founded the company because, as a new father, he wanted to do something for his children’s future. Together with Peter Leighton, he has since built a portfolio of over 100 royalties. They cover solar, wind, hydro, batteries, and biogas. It is a broad diversification that mitigates risk for investors. Investors are not investing in a single technology, but in the entire green energy sector. The model doesn’t dilute returns for customers and is profitable for shareholders. It is a win-win situation, which is truly rare in the current market environment.
Here is a look behind the scenes at RE Royalties.
When we compare all three stocks side by side, a clearer picture emerges. Nordex is the solid rock for those who believe in the future of wind power. It is an investment in infrastructure. Nel ASA remains the wild card for speculators betting on the big hydrogen boom. Here, volatility is a constant companion. And RE Royalties? This company is a clever bridge. It connects the growth market of renewables with a scalable financial model.
RE Royalties may even be on the verge of a major turning point, as the strategic review by PwC and the well-stocked investment pipeline indicate there could still be room for growth. Objectively speaking, the company is in a good position. After doubling in price, the stock offers an opportunity for those who believe in sustainable growth. The energy transition appears unstoppable, and RE Royalties is well-positioned to reap the rewards.
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