- Investment commitments into the renewable energy sector have been heating up recently with the commencement of the UN climate summit, COP 26.
- The sector has gained favour from climate-conscious investors seeking to get in from the ground and maximise their return on investment.
Climate investment into the renewable energy sector has been in sharp focus recently, once the COP 26 UN talks kicked off earlier this week.
Renewable energy stocks have also witnessed high growth recently with the growing interest of climate-conscious institutional and retail investors.
Investors are increasingly looking to get in on the ground before certain stocks become too expensive to buy amid the immense growth expected in the sector in the coming years. Especially as the UK and the world at large aims to tackle climate change and transition towards a low carbon economy.
200% return in a year! 2 renewable energy stocks to buy
A global coalition of financial institutions called the Glasgow Financial Alliance for Net Zero (GFANZ) plans to commit over US$ 130 trillion in order to help achieve net-zero greenhouse gas emissions. The coalition is being led by former Bank of England governor Mark Carney.
Let us take a deeper dive into the 2 high performing AIM-listed stocks in the renewable energy sector with a one-year return of over 190 per cent:
- AFC Energy PLC (LON: AFC)
AFC Energy is a hydrogen focused energy firm that develops alkaline fuel cells for electricity production. It is part of the FTSE AIM UK 50 index.
HRH Prince of Wales on 3 November viewed a demonstration of AFC’s net zero-emitting hydrogen power generator at the COP 26 conference.
The generator used for the demonstration had been earlier featured in the Extreme E all-electric SUV racing series this year.
The group’s H1 2021 revenue stood at £0.15 million, compared to nil in H1 2020. The initial commercial revenue recognition came from the Extreme E-commercial after completing its first race
AFC’s H1 2021 cash balance increased to £61.6 million, from £2.8 million in H1 2020, while its H1 2021 loss widened to £3.3 million, from £1.8 million in H1 2020.
AFC Energy’s market cap stands at £439.96 million, as of 3 November. The company has netted shareholders a return of 252.60 per cent over the past one year, as of Wednesday.
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- EQTEC PLC (LON: EQT)
EQTEC is a UK based bioscience energy company and is part of the FTSE AIM All-Share index.
The company recently received planning permission from the Flintshire County Council's Planning Committee to develop its 9.9 MW waste to energy project, Deeside Refuse Derived Fuel, located in Flintshire, Wales.
The move is expected to aid Flintshire with its climate goals of becoming net-zero by 2030.
EQTEC’s market cap stands at £124.17 million, as of 3 November. The company has netted shareholders a return of 194.17 per cent over the past one year, as of Wednesday.