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Siemens Gamesa: a small-cap leader in the renewable energy

Siemens Gamesa (GCTAF) is an interesting Russell 2000 stock and is a major pusher for a green economy. For all investors looking to invest in this eco-friendly company, learn on all you need to. 

Formerly known as Gamesa Corporación Tecnológica S.A. (it is pronounced in Spanish as: [ɡaˈmesa koɾpoɾaˈθjon teɣnoˈloxika]) and Grupo Auxiliar Metalúrgico S.A..

Siemens Gamesa Renewable Energy S.A. is a Spanish-German wind energy company with its base at Zamudio, Biscay, Spain. 

The wind energy company is known for the production of wind turbines for the sustainability of the environment. It is also known for providing onshore and offshore services for eco-friendly use for the environment. 

Siemens Gamesa is the second-largest manufacture of wind turbines in the world. The wind energy company is famous for producing its wind turbine SG 14.0-222, which is known to be the largest variant based on Siemens D7, including being the largest wind turbine worldwide. 

siemens gamesa renewable energy

This article will be based on the general overview of Siemens Gamesa, which will reveal its historical background, its business, why the company is green, and its future.

We will also provide an in-depth review of its CEO, Marcus Tacke, including other things that pertains to the successful coordination of activities of the company. 

They contribute to reaching sustainability of development goals for our customers and investors.

History of Siemens Gamesa

As of 1976, Grupo Auxiliar Metalúrgico S.A. Siemens Gamesa, a wind energy company that provides wind energy for sustainability.

The wind energy company was more concerned with creating new eco-friendly tech and using them for emerging environmental activities. This new tech includes;

  • Microelectronics.
  • Composite materials.
  • Aeronautics.
  • The development of robotics.

The wind energy company was founded by Juan Luis Arregui and Joseba Mikel Grajales. A subsidiary was created in 1994 by Gamesa Eólica, which focuses on wind turbine production for more sustainability of a more eco-friendly environment.

In 1995, Gamesa was developed, constructed, and operated wind farms while competing for its first wind farm in 1996. As an advocate of the green economy, it had partnered with Vestas for seven years which came to an end in 2002.

Core business

As a green and nature protecting company focused on the sustainability of renewable energy for the environment, they; 

  • Operate a business in a profitable, expert, and financially cultured way. 
  • Make decisions to expand markets, including growing into the market while seeking business opportunities and other fields related to it. 

Operations are based on clear financial targets and setting targets to grow to the top while enhancing our capital strength.

They, Siemens Gamesa, bring reformation to renewable energy as a leader in this sector. They make provisions for a trusted, cost-effective, cleaner, and more sustainable, eco-friendly wind power.

solar wind renewable energy for green economy

The business is highly diversified, both geographically and business-wise. Business operations are successfully executed onshore, offshore, and service. Being a geographically diversified company, they are closer to our customers and investors while building a universal supply chain that spans across all-region. 

Another competitive advantage is technological leadership, as they have all it takes to provide award-winning products for all winds, geographic conditions, and the need of consumers. Apart from finance and business expectations, they focus on moving the Nature-friendly agenda of the UN forward.

For nature and environment, friendly stock diversification placing your investments on Siemens Gamesa is an excellent choice for investors.

How to invest in Siemens Gamesa

In this chapter we will look at some ways to invest in the Siemens Gamesa stock.

This article is purely didactic and absolutely not a suggestion for the purchase of the title. By the time you read this, many things may have changed.

Investing your money in the stock or derivatives market can be very dangerous, don’t do it if you don’t know what you are doing. Please read our disclaimer carefully before continuing the article.

Siemens Gamesa Stock and CFD

siemens gamesa stock chart

The most traditional way is to buy shares or CFDs. Stocks are preferred when you want to hold the stock for a long time and not just buy it for trading.

Using CFDs involves a cost due to margining and therefore is not suitable for long-term operations.

The stock rallied sharply as the change in US administration became clear.
As we know, Trump has always opposed the green economy, while Biden is a convinced promoter of it.

One way to invest in this stock without exposing yourself to risk on a single company is to choose an ETF.

An ETF has a basket of securities within itself, in this case, all referable to the green economy.

I will show you two of the ones that have a greater weight than Siemens Gamesa. As you can see from the graphs, they have a very similar trend to the Siemens Gamesa stock.

iShares Core MSCI EAFE ETF with siemens gamesa exposition
iShares Global Clean Energy ETF with siemens gamesa exposition

Why Siemens Gamesa is a Green Company

Gamesa Renewable Energy is not relenting in its strategic means to make sustainability a significant key of every business aspect, including how it is funded strategically.

In less than 12 months, there has been an alignment of its dedication to its sustainability, accumulating 172 billion euros in the green guarantee line.

The Renewable Energy Company will utilize this to support its business of producing and selling wind turbines, both onshore and offshore globally. With the installation and investment of more than 99 GW of wind capacity globally, there is sufficient clean energy production for powering about 85 million households throughout the European nations.

siemens gamesa dedication to sustainability green guarantee line

By doing this, Siemens Gamesa contributes to the elimination of 260 million tons of CO2 emissions yearly. This is an equivalence of planting more than 4 billion trees. The Renewable Energy Company supports global climate protection goals, having adopted the global idea for decarbonizing economies.

The company is steadily replacing conventional emission-intensive sources of power with renewable energies in its operations. It has made it known that becoming more sustainable and competing with others is more positive and feasible as they are concerned with doing this in all of its taken steps.

Green Hydrogen, the fuel of the future 

Globally, we are faced with a massive problem of meeting the UN’s agreement to remain below the two degrees Celsius rise of temperature by alleviating the dangers associated with climate change and ensuring the whole global economy is decarbonized.

siemens gamesa contributes elimination million tons CO emissions yearly

For sectors that solely depend on electricity use, there have been practical and reliable steps towards this goal of wind power. However, to get the dangers associated with climate change prevented, decarbonization of all economy part depends on other energy sources such as heavy transportation or industry.

Achieving this requires us to use the available, less expensive, and green electricity via renewable energy outside the electricity sector. The primary key to this achievement is Green hydrogen.

As renewable energy drives green hydrogen, there can be hydrogen production by electrolyzers without any greenhouse gas emissions. Splitting of water into hydrogen and oxygen is done with the use of renewable power.

green hydrogen with solar wind for green economy

The production of hydrogen in this form is known as green hydrogen. There can be a transformation of green electricity into fuel with green hydrogen serving as a connection where there is no current existence of climate-neutral alternatives.

Siemens Gamesa CEO: Markus Tacke 

Marcus Tacke is the CEO of Siemens Gamesa with more than 25 years of experience in practice in machinery and investment goods, specifically in the sector of energy. 

Marcus Tacke is the CEO of Siemens Gamesa

He has a rigid background in the energy production brand, including engineering from different Siemens AG entities. He boasts two decades of experience in global organization-leading units.

At the moment, Marcus Tacke holds the CEO’s position for Oerlikon Surface Solutions, one of the Oerlikon division’s two arms. He is a graduate of the Technische Universität Darmstadt and Cornell University. He has also worked for other groups such as the wind energy community and wind power intelligence.

Conclusions

Siemens Gamesa is in a fast-growing industry, and the Biden administration will boost this process.

Of course, these megatrends are often subject to bubbles, and the advent of new technology from a competing company can cause other stocks to plummet.

They are also relatively new and low capitalized stocks, so the best choice, as always, is to use baskets of similar stocks to differentiate risk.

Or choose a product such as an ETF or investment fund exposed on this stock, as I showed you earlier.

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