By - Suhita Poddar
Summary
- The UK has made tackling climate change a priority and has set ambitious net zero targets.
- Also, the London Stock Exchange’s green economy mark is a recently launched label identifying companies that are aiding in developing the green economy.
- Penny stock investors can explore green energy focused stocks due to their high growth potential.
As the world grapples with the reality of climate change, it has become an ever more pressing challenge to address it in an urgent and immediate manner across all industries and stakeholders levels. The UK, in particular has made tackling the climate challenge a priority and has set an ambitious target of achieving net zero carbon emissions by 2050.
The UK is also set to host the COP 26 UN climate talks in Glasgow, later in the year. In keeping with this overall UK mandate, the London Stock Exchange (LSE) launched the Green Economy Mark in 2019 to spotlight diverse funds and businesses working in the sustainability sector.
All those organisations that have at least 50 per cent or more of their revenues being generated from activities benefiting the global green economy are awarded this label. Green economy mark issuers have a combine market capitalisation of over £148 billion on the LSE.
Investors considering penny stock investing can explore the green energy sector with its growing growth potential.
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In this article, we take a closer look at 7 AIM listed penny stocks operating in the green energy sector, who are also recipients of the Green Economy Mark:
FTSE AIM UK 50 index listed firm AFC Energy is an alkaline fuel cell company. The company recently announced its interim results for the six months period ended 30 April.
The company reported HY 2021 revenue at £0.15 million compared to nil in HY 2020, while its cash balance improved to £61.6 million, from £2.8 million in HY 2020.
AFC’s market capitalisation stands at £379.67 million and its annual return is at 107.21 per cent, among the highest in the green energy sector.
Also Read: What to consider while investing in penny stocks in the UK
FTSE AIM All-Share index listed firm EQTEC PLC is a gasification focused company. In its Q2 2021 trading update, its revenues continued to be in line with the forecasted revenue of EUR 15 million for FY 2021, also the earnings before interest tax, depreciation and amortisation (EBITDA) for the year.
The company’s annual return stands at a whopping 157.20 per cent while its market capitalisation is at £91.94 million.
Another FTSE AIM All-Share listed stock, Powerhouse Energy is a hydrogen focused company. The company’s partner Peel NRE, which is clean energy focused firm, signed a letter of intent to supply hydrogen technology to hydrogen related venture capital Element 2.
The company’s annual return stand at 3.68 per cent, and its market cap is at £152.56 million.
Marine energy focused renewable energy firm SIMEC Atlantis Energy, is a constituent of FTSE AIM All-Share index. The company expressed its continuing commitment towards converting the Uskmouth Power Station, a power stations located in the southeast of Newport in Wales.
The conversion plans involve transforming the power station to a net zero emitting site. The company’s market cap stands at £21.99 million.
UK based and FTSE AIM All-Share index listed firm Inspired PLC is a sustainability energy consultant. The company recently announced it had changed its name from Inspired Energy PLC to Inspired PLC to highlight the firm’s evolution.
The firm has three distinct business segments Inspired Energy which offers sustainability services, its ESG solutions arm Inspired ESG and tech and software related services business segment Inspired Software.
The company’s annual return stands at 27.40 per cent, and its market cap is at £190.75 million.
Verditek is a UK-based green technology company focused on solar panel production and development. It is also a constituent of the FTSE AIM All-Share index.
The company recently announced its final audited FY 2020 results, showing it moved from development phase to commercialisation. It also reported FY 2020 revenues of £21,521, and its loss after tax was at £2.324 million. Verditek’s market cap is at £7.51 million.
Velocys PLC is a sustainable fuels technology firm, which is also a part of the FTSE AIM All-Share index. The company recently announced an agreement with US based engineering company Koch Project Solutions for the Velocys Bayou Fuels project, for the production of standard aviation fuel.
The project will be located in Natchez, Mississippi and is expected to produce about 30 million gallons of clean fuel per annum. Its FY 2020 revenues were at £0.2 million compared to £0.3 million in FY 2019.
The company’s market cap is at £44.36 million, and its FY 2020 revenue per share stands at 0.02 pence.
Also Read: Top 10 AIM Stocks with Dividend