Why did the stock of Phinergy, a small company from Kfar Saba that develops a system for generating, backing up and storing green energy, leap by about 12% last week? And how is this related to the war tensions in the north?
Phinergy's system allows for electricity production by combining oxygen from the air with aluminum, providing backup power for critical facilities. According to the company, the backup lasts for 22 hours, compared to the few hours offered by current systems.
Despite its potential, the company, which went public in 2021, has since crashed by 70%, similar to many stocks from that IPO wave. So, what caused the recent change?
The surge was driven by a seemingly minor order from the Israel Electric Corporation (IEC) and, importantly, its timing. Last week, Phinergy reported that, following a pilot with the IEC, it received an order for a backup system based on its technology.
The company stated that the order is a positive indication of the relevance of its backup system for providing energy to strategic sites, but noted that it is not a significant financial order at this stage. There is no certainty about additional orders or their scale.
Such an announcement would typically go unnoticed, but it caused the stock to soar on Thursday because it came at the perfect time. Public anxiety, and likely concerns within Noga's board, were sparked after Shaul Goldstein, CEO of Noga, an Israel Independent System Operator, stated at a conference in Sderot that Israel's electrical system is unprepared for a real war.
"After 72 hours without electricity, it will be impossible to live here – we are in a bad situation," he said. Goldstein clarified that Israel’s electrical system lacks sufficient backup to maintain continuous power for several days if it were directly attacked.
Goldstein’s statement angered Noga’s chairman and the CEO of the IEC, who responded by attempting to dismiss him, despite professional backing for his comments. Eventually, likely due to media focus on the issue, the board relented and announced it had reprimanded Goldstein but had no intention of firing him.