I have previously owned shares in the Swedish cleantech company Climeon. Climeon produces heat power systems, converting waste heat and geothermal heat into clean electricity. I will not be doing a longer post about this company since I do not currently hold any position however since they provided an update today I wanted to give my view on their progression.
Climeon today announced the following :
“Climeon has commissioned its second installation together with Varmaorka in Iceland, a geothermal power plant in Reykholt. The power plant has a capacity of 300 kW and is connected to the local district heating network.
– We are very proud to have commissioned another Heat Power installation in Iceland. It is an important step for us to show that electricity production with Climeon’s technology is compatible with district heating, says Jan Bardell, CEO of Climeon.“
This update is very welcomed and I know many investors have been wondering what has taken them so long to get this project going. Covid-19 has been a repeatedly lame excuse, in my opinion, for the slow progression.
Although the company seems to be progressing this is far from enough for me to personally reconsider taking the stock into my portfolio as of this moment. I’ve also read that the analyst covering Climeon at Pareto Securities believes, just like I do, that 2021 will be a hold-up period for Climeon. This is very likely since Climeon recently announced they were working on an improved version of their Heat power module. It does not take a rocket scientists mind to figure out that most customers will not be buying new products until the better version is released, especially since this product is an investment that costs minimum tens of millions of Euros.
When and IF I see sales starting to take off for Climeon I will reconsider my view of owning shares in the company.