AFC, ITM, ATOM: 3 hydrogen energy stocks to buy

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Highlights 

  • Hydrogen, a clean energy source, is widely considered a future source of energy that could help meet the net-zero emission targets.
  • Many stocks listed in the UK stock market operate in the hydrogen business like AFC Energy, ITM Power, and Atome Energy.

Hydrogen is one of the most widely available gases in the universe. It is a clean energy carrier, which in combination with fuel cells generates electricity, power, and heat. At present, hydrogen gas is primarily used in the petroleum and fertiliser industry.

When consumed using a fuel cell technology, hydrogen gas produces minimal waste with water and heat as the main by-product. Hence the combination of hydrogen and fuel cell provides energy that can be used to power vehicles and distribute energy to households.

Being a clean energy source, hydrogen as a fuel is widely considered a future energy source that could help meet the net-zero emission targets. Many companies operating in this growing industry have received millions of pounds in private investments. Also, the UK government is taking progressive steps to boost domestic hydrogen production.

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Many stocks listed in the UK stock market operate in the hydrogen business. Let us take a look at a few of these stocks and explore their investment prospect.

AFC Energy Plc (LON: AFC)

The UK-based company is a leading provider of alkaline fuel cell systems that produce a clean source of energy. Its fuel cell technology is currently being used to charge electric vehicles and substitute for diesel generators.

In 2021, AFC Energy received its first commercial order for its S-series fuel cell system from ABB. The company has a positive outlook towards its fuel cell technology and expects the hydrogen economy to grow significantly, driven by higher investment and technical development.  

AFC Energy Plc currently trades at GBX 35.85, up by 2.14% on 11 March 2022 at 11:15 am GMT+1, with a market cap of £257.80 million.

ITM Power Plc (LON: ITM)

FTSE AIM-listed company designs and manufactures energy systems that generate hydrogen gas. It has operations in the UK, Germany, the US, and many other countries.

ITM has a promising project pipeline. It has 1,379 MW of project backlogs for the year ended 31 October 2021, while its total revenue was £4.2 million. In January 2022, the company installed 24MW electrolyser at a site operated by Yara Norge AS that produces 3 million tons of fertiliser per year. The new electrolyser will help the company produce the green hydrogen required in the production stages.

ITM Power Plc currently trades at GBX 397, up by 4.81% on 11 March 2022 at 11:15 am GMT+1, with a market cap of £2,322 million.

Atome Energy Plc (LON: ATOM)

The company is into the production of green hydrogen as well as ammonia. It has main operations in Iceland and Paraguay.

ATOME Mobility, is the new division created by Atome Energy, which aims to provide clean energy solutions for the transport and shipping industry. The new entity plans to supply clean hydrogen energy, and the funding for the project will be sourced through the company’s internal resources. The business operation is expected to begin in the first half of 2023 in Paraguay.

Atome Energy Plc currently trades at GBX 79.50, up by 0.63% on 11 March 2022 at 11:15 am GMT+1, with a market cap of £25.68 million.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


 

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