AFC Energy & ITM Power: 2 alternative energy stocks to buy now

Highlights

  • Renewables have gained in importance not just due to the UK’s focus on becoming a climate leader but also as a solution for UK’s energy security amid a deepening energy crisis.
  • The UK is set to host a key climate summit, the COP 26, which will begin from 31 October, in Glasgow.

Renewables have gained further attention in the recent weeks amid a deepening energy crisis in the UK. The energy crisis caused by rising gas prices, fuel supply shortage, inflation worries, supply chain challenges and other factors have weighed on the macroeconomic scenario.

The UK business secretary, Kwasi Kwarteng, had said that renewable energy is the only long-term solution for the UK to ensure energy security and to reduce the nation’s dependence on gas.

The UK is set to host the key climate summit, COP26. Also, the UN climate talks will take place in Glasgow, Scotland, and is also expected to be the biggest summit that has ever been hosted by the UK.

The UK has made sustainability a key priority for due to its goals of becoming a climate leader and ahead of hosting the COP 26 summit.

Given this context, let us take a look at 2 FTSE listed alternative energy and utility stocks with a one-year return of over 50 per cent. These stocks also hold the LSE’s Green Economy label:

  1. AFC Energy PLC (LON: AFC)

AFC Energy is a leading hydrogen fuel cell power company and is a part of the FTSE AIM UK 50 index.

The company recently signed a partnership deal with micro-airport Infrastructure-as-a-Service (MAIaaS) firm Urban-Air Port Ltd.

The collaboration aims to develop 65 electric urban airports globally. The company plans to lease a net-zero emissions hydrogen power generator to the first urban airport.

The generator will be called Air One and will be launched in Coventry, England, in early next year.

The company has a market cap of £341.54 million and a one-year return of 150.54 per cent as of 13 October 2021.

  1. ITM Power PLC (LON: ITM)

ITM Power is energy storage and clean fuel firm. It is part of the FTSE AIM UK 50 index.

The company recently reported that its Refhyne II consortium, which comprises of Shell Deutschland GmbH, ITM Power, Linde Engineering and several others, had received funding for the project, which involves developing a 100 MW electrolyser located at Shell's Energy and Chemicals Park in Rheinland, Germany.

The consortium received a grant worth about EU 32.4 million from the European Climate, Infrastructure and Environment Executive Agency for the project.

The company has a market cap of £2,485.67 million and a one-year return of 54.67 per cent as of 13 October 2021.

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