4 clean energy AIM stocks to buy in December

Green energy has been in sharp focus recently following the UN climate conference COP 26. It’s not only the activist but there has also been a rise in climate-conscious investors seeking to invest in green stocks, especially as the green energy sector is expected to see a huge rise in the coming years.

Given this background, let us take a look at the top 4 AIM-listed stocks in the alternative energy sector with a one-year return of over 25 per cent:

1. AFC Energy PLC (LON: AFC)

AFC Energy is an alkaline fuel cell company and is a constituent of the FTSE AIM UK 50 index.

The company executed its first sale and development agreement with automation company ABB Ltd recently.

ABB placed its first order for AFC’s S series hydrogen fuel system in a deal worth up to £4 million and is scheduled to be delivered in early 2023.

AFC Energy has a market cap of £390.01 million, and its one-year return stands at 90.94 per cent as of 23 November.

2. Powerhouse Energy Group Plc (LON: PHE)

Powerhouse Energy Group is a sustainable hydrogen company involved in the conversion of plastics and waste to clean energy. The company is a part of the FTSE AIM All-Share index.

The company’s development partner, Hydrogen Utopia International PLC (HUI), entered into a framework agreement with Linde Engineering, an industrial gas and engineering company.

According to the agreement, Linde will have a 5-year exclusivity to supply HUI's development of Powerhouse's proprietary waste-to-hydrogen process technology DMG.

Powerhouse Energy Group has a market cap of £183.69 million, and its one-year return stands at 31.14 per cent as of 23 November.

3. Inspired PLC (LON: INSE)

Another FTSE AIM All-Share index constituent, Inspired PLC, is an energy procurement and management consultancy firm.

The group’s H1 2021 revenue rose by 31 per cent to £32.62 million, from £24.94 million in H1 2020. The rise was due to continuing recovery in the company’s markets, customers and economy.

The group’s H1 2021 adjusted EBITDA rose by 15 per cent to £8.82 million, from £7.64 million in H1 2020. And, its interim dividend per share in H1 2021 rose by 20 per cent to 0.12 pence, from 0.10 pence in H1 2020.

Inspired has a market cap of £ 165.24 million, and its one-year return stands at 25.45 per cent as of 23 November.

4. Velocys PLC (LON: VLS)

Velocys is a British sustainable fuel technology firm. It is another clean energy company that is a part of the FTSE AIM All-Share index.

The company reported its subsidiary, Velocys Renewables LLC, had entered into two separate offtake agreements with airlines, International Consolidated Airlines Group S.A. (LON: IAG) and Southwest Airlines for sustainable aviation fuel (SAF)

The agreement with Southwest Airlines is for about 219 million gallons of SAF at a fixed price, over a 15-year period starting from 2026, while the IAG agreement is for a 10-year period for 73 million US gallons of SAF.

Velocys has a market cap of £98.58 million, and its one-year return stands at 41.60 per cent as of 23 November.