RR., TRIG, ITM: 3 alternative energy-focused stocks you can buy now

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RR., TRIG, ITM: 3 alternative energy-focused stocks you can buy now

 RR., TRIG, ITM: 3 alternative energy-focused stocks you can buy now
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Highlights

  • The UK government has announced a new energy security strategy, which includes plans to generate nearly 95% of Britain’s electricity needs through green sources.
  • The new energy strategy is likely to boost the alternative energy market and companies operating in the segment.

The UK government has announced a new energy security strategy, which includes plans to generate nearly 95% of Britain’s electricity needs through green sources like wind, solar and nuclear. It will help the country switch away from fossil fuels in an accelerated manner.

Around 55% of the UK’s electricity needs come from low carbon sources at present. However, the UK government plans to move away further from electricity sourced from fossil fuels because of the highly volatile oil and gas prices in the international market.

As part of the plan, four new nuclear power stations will be constructed. It is expected that by 2050, nearly 24 GW of electricity will be generated through nuclear energy. In addition, thousands of new wind turbines will be set up at sea to maximise the offshore wind capacity. By 2030, around 50GW of electricity supply will be contributed through wind turbines.

The government is also planning to increase its solar and hydrogen energy capacity and push other low carbon sources like tapping geothermal and tidal energy. The new energy strategy is likely to boost the alternative energy market and companies operating in this segment.

3 Alternative Energy stocks in focus

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Let us look at FTSE listed stocks that operate in the alternative energy market and explore their investment prospects:

Rolls Royce Holdings Plc (LON: RR.)

The industrial technology company provides its services to aerospace, power, and other industrial groups. The company is building a new technology that will help develop affordable, low carbon small nuclear power stations that are one-tenth in size compared to a conventional nuclear power plant and power nearly one million homes.

The company has formed a new subsidiary, Rolls-Royce SMR Limited, and secured funding of £490 million. It includes prominent shareholders like BNF Resources UK Ltd, Qatar Investment Authority, and Exelon Generation Ltd.

Rolls Royce Holdings Plc’s last close was at GBX 96.46 on 06 April 2022, with a market cap of £8,071 million.

Renewables Infrastructure Group (LSE: TRIG)

The FTSE 250 listed company invests in projects that generate electricity from clean energy sources. It participates in operational assets like onshore wind energy farms and solar parks in the UK and the European Union.

In March 2022, the company acquired a 49% stake in Project Valdesolar, which operates a solar park in Spain and has a total capacity of 264 MW. The new acquisition will represent 3% of the company’s total portfolio by value.

Renewables Infrastructure Group’s last close was at GBX 137.20 on 06 April 2022, with a market cap of £3,402 million.

ITM Power Plc (LON: ITM)

The company designs, manufactures, and sells hydrogen energy systems for industrial use. Its system is used for energy storage in the UK and other European countries.

The company recently entered into a strategic partnership with Vitol Holdings SARL. The new 50-50 joint venture will see an investment of up to £30 million from both companies and will work on the development of hydrogen projects.

ITM Power Plc’s last close was at GBX 356.10 on 06 April 2022, with a market cap of £2,183 million.

Note: The above content constitutes a very preliminary observation or view based on market 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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