3 of the best AIM green fuel stocks with over 75% return in a year

3 of the best AIM green fuel stocks with over 75% return in a year

Highlights:

• Green energy is poised to boom due to climate concerns and government regulations.
• Hydrogen and fuel cell companies, in particular, are set to grow rapidly as the UK recently announced its Hydrogen economy plans.
• The fuel cell market is expected to touch up to US$ 9 billion by 2030

Green energy stocks have gained in recent months as investors are increasingly demanding climate responsibility from their investments.

Solar, offshore wind and hydrogen are some of the growing sectors within the alternative energy space, which have witnessed strong momentum in the past one year as the UK government has made sustainability a priority.

The UK recently revealed its goals to become a hydrogen economy, with the UK PM Boris Johnson announcing a 10-point plan to achieve its goals of having 5 gigawatts of low carbon hydrogen production by 2030.  The UK hydrogen economy is expected to create over 9,000 jobs have a market size of about £ 900 million by 2030.

Keeping the above in view, let us take a deep dive into the 3 high performing green fuel stocks listed on the FTSE AIM UK 50 Index:

1. ITM Power (LON: ITM)

ITM is a hydrogen energy company that manufactures polymer electrolyte membrane electrolysers.

ITM is set to report its FY 2021 results this month on 13 September. The company is expected to gain as the fuel cell market is expected to boom in the coming years.

An industrial gas and engineering company Linde PLC (LON:LIND) announced recently it would use ITM’s proton exchange membrane (PEM) technology to build a green hydrogen power plant as part of Linde’s new agreement with German semiconductor company Infineon Technologies.

(Image Source: EODHD/Others)

Ceres’ shares were trading at GBX 503.00, up by 0.60 per cent on 2 September at 08:35 AM GMT+1. The company’s market cap stood at £2,753.29 million and its one-year return is at 77.75 per cent as of 2 September.

Related Article: Electrolyser manufacturer ITM Power reported an encouraging order backlog of £154.0 million

2. Ceres Power Holdings PLC (LON:CWR)

Ceres Power is a fuel cell technology, and engineering company focused on addressing climate change via clean energy solutions.

The company announced on Wednesday that its Korean partner Doosan Corporation has completed developing a 10-kilowatt solid oxide fuel cell (SOFC) system, using Ceres’ 5 kilowatt SOFC technology stack.

The new system was found to have 40 per cent more efficiency compared to Doosan’s earlier existing technology and is expected to have a soft launch next year.

(Image Source: EODHD/Others)

Ceres’ shares were trading at GBX 1,215.00, up by 0.08 per cent on 2 September at 08:21 AM GMT+1. At the same time the energy sectoral index was at 5,102.57, up by 0.41 per cent.

The company’s market cap is at £2,311.59 million and its one-year return is at 123.70 per cent as of 2 September.

3. AFC Energy PLC (LON:AFC)

AFC Energy is a UK based alkaline fuel cells company operating in the hydrogen sector.

The fuel cell market is expected to touch a revenue of US$ 9 billion by 2030, according to a report published by research firm Global Market Insights on Wednesday. The report included AFC Energy, Ceres Power and others as key players in the fuel cell sector.

(Image Source: EODHD/Others)

AFC’s shares were trading at GBX 59.00, down by 2.80 per cent on 2 September at 08:10 AM GMT+1. The FTSE AIM UK 50 index was at 7,049.05, down by 0.07 per cent.

The company’s market cap is £445.79 million, and its one-year return is at 178.77 per cent as of 2 September.

Bottom Line

The global fuel cell market is set to grow substantially between 2021 to 2027, according to a recent report by market research firm Allied Market Research. Moreover, the broader green energy sector is set to boom in the coming years due to strict government regulations over carbon dioxide emissions.

Thus, investors keen to have exposure to alternative energy stocks may consider high quality stocks operating in the fuel cell sector.