4 clean energy AIM stocks to buy in December

Highlights

• Green energy has been in sharp focus recently following the UN climate conference COP 26.
• Climate conscious investors can consider several green energy stocks on AIM with a good one-year returns.

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.