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Highlights
- Offshore windfarm company North Star Renewables announced securing a £96 million loan for building an offshore renewables fleet.
- The project will include building 3 new service operations vessels (SOVs), the first of which is expected to be delivered to Dogger Bank in the UK North Sea in summer 2023
- Dogger Bank is expected to become the largest offshore wind farm in the world after the accomplishment of the project.
- ITM Power, Ceres Power and AFC Energy are the hot renewable stocks among the AIM listed energy companies.
Scotland-based offshore wind farm focused North Star shipping subsidiary North Star Renewables had secured a £96 million loan funding to build a new UK-based offshore wind power renewables fleet.
The project will involve building three new service operations vessels (SOVs). The SOVs will be supplied to the Dogger Bank offshore wind farm located in the UK North Sea.
The SOVs will have 10 year plus options long term contracts. Also, the contracts are expected to create about 130 new long-term jobs in the region.
After completion of the project, Dogger Bank would be the largest offshore wind farm in the world. The wind farm is currently under construction and includes joint venture partners energy firm Equinor, UK based renewable energy company SSE Renewables and Italian oil and gas major Eni.
The first SOV is expected to be delivered in the summer of 2023. Global investment management firm Allianz Global Investors offered the loan to North Star, thereby making it the first SOV investment for the investment management company.
The loan adds to North Star Renewables’ 100 per cent shareholder Basalt Infrastructure Partners.
Related Video: How Onshore and Offshore Wind Can Be Used As A New Form Of Electricity In The UK?
Let us take a closer look at the top 3 FTSE AIM UK 50 index listed renewable energy stocks and see how they reacted to the news.
- ITM Power PLC (LON: ITM)
ITM Power is energy storage and renewable energy firm. The company recently announced the opening of its first hydrogen Gigafactory at Sheffield, making it the world’s largest electrolyser factory.
(Image Source: Refinitiv)
ITM’s shares were trading at GBX 475.20, up by 2.59 per cent on 24 August at 08:10 AM GMT+1. The FTSE AIM UK 50 index was trading at 6,895.04, up by 0.40 per cent.
The company’s market cap stands at £2,550.65 million as of 24 August, and its one-year return is at 72.47 per cent.
- Ceres Power Holdings PLC (LON:CWR)
Ceres Power is a fuel cell technology based clean energy firm. It recently announced its H1 2021 trading update, reporting its revenue in H1 2021 to be about £17 million, up from £8.9 million in H1 2020 due to high gross margin. It is set to release its interim H1 2021 results on 30 September.
(Image Source: Refinitiv)
Ceres’ shares were trading at GBX 1,118.00, up by 0.63 per cent on 24 August at 08:16 AM GMT+1. The energy sector index was trading at 5,062.12, up by 2.15 per cent.
The company’s market cap stands at £2,115.47 million as of 24 August, and its one-year return is at 100 per cent.
- AFC Energy PLC (LON:AFC)
AFC Energy is a fuel cell developer for renewable energy generation.
It recently announced the delivery of its first hydrogen fuel cell system to Swedish automation firm ABB as part of AFC and ABB’s strategic partnership, which was launched in December 2020.
(Image Source: Refinitiv)
AFC’s shares were trading at GBX 59.00, down by 1.34 per cent on 24 August at 08:16 AM GMT+1. The company’s market cap stands at £ 439.18 million as of 24 August, and its one-year return is at 190.46 per cent.
Bottom Line
The renewable energy sector has seen a strong push from the UK government, with a significant uptick in the offshore wind, solar and hydrogen sector recently. The sector is expected to continue gaining moment as the UK prepares to host the UNs key climate summit, the COP26, later this year in Glasgow.
