Lens On 3 FTSE AIM Energy Stocks After the UK Focuses on Clean Growth Trade

Source: jaroslava V, Shutterstock

Summary

• UK Secretary of State Elizabeth Truss has highlighted clean growth as one of the key aspects for the UK Export Finance’s trade priorities this year.
• The move comes ahead of the COP26 summit, which the UK will host in November.

UK Secretary of State Elizabeth Truss has said clean growth as one of the key aspects for the UK Export Finance (UKEF) international trade priorities this year. The letter posted on the UK government website highlighted clean growth projects such as the offshore wind project in Taiwan and a solar plant project in Spain announced last year as a reference point for encouraging more trade in the renewable energy sector. The move comes much ahead of the COP26 UN Summit talks, which the UK will host in November.

Two firms based in the North West and East Anglia area won the Greater Changhua 1 Offshore Wind Farm contract for the project. The UKEF guaranteed financing of up to £200 million for the Taiwan project, bringing UKEF’s total financing up to £500 million for several offshore wind projects in Taiwan.

Meanwhile, UK-based solar energy company Solarcentury received a £47.6 million financing guarantee for building the Talayuela Solar project in Extremadura and the Cabrera Solar project in Alcalá de Guadaira in Spain.

                                           Copyright © 2021 Kalkine Media Pty Ltd.

With the UK’s increasing focus on renewable energy solutions, we will take a look at 3 high performing FTSE listed renewable energy stocks with an annual return of over 250 per cent:

1. ITM Power PLC (LON:ITM)

On 18 March, the FTSE AIM listed energy storage and clean fuel company ITM Power announced the sale of its 1.4 megawatts electrolyser to Japanese investment company Sumitomo Corporation (TYO: 8053) making it the first electrolyser deployment in Japan.

The company said the sale would be considered as an important reference point for further sales in the region. ITM has a partnership with Sumitomo Corporation, which began in 2018.

(Source: EODHD/Others, Thomson Reuters)

ITM Power PLC’s shares traded at GBX 417.68, down by 2.31 per cent on 23 March at 09:10 AM GMT+1, while the FTSE AIM UK 50 index closed at 6,410.33, down by 0.32 per cent. The company’s market cap was at £2.351 billion while its 1-year return was at 290.39 per cent.

Also Read: What are the recent developments made by ITM Power on its world’s first Hydrogen Gigafactory?

2. Ceres Power Holdings PLC (LON:CWR)

Another FTSE AIM UK 50 listed renewable energy company Ceres Power Holdings PLC announced the completion of a £181 million fundraising process via a share placing and subscription on 18 March.

The company said part of the proceeds will be used for investing in strengthening its core business, accelerate its technology development to maintain leadership in the sector. It also aims to use the capital to boost its R&D and manufacturing capabilities and several other areas. The capital raising was backed by engineering major Bosch and China-based engine manufacturer Weichai Power.

(Source: EODHD/Others, Thomson Reuters)

The company’s shares were trading at GBX 1,153.00, down by 1.85 per cent on 23 March at 09:08 AM GMT+1. Its market cap was at £ 2.176 billion, while its 1-year return was at 294.48 per cent.

Also Read: Ceres Power Holdings Plc releases half-yearly results

3. Powerhouse Energy Group PLC (LON:PHEG)

FTSE AIM All Share listed hydrogen technology company Powerhouse Energy, announced the placing of 41,888,183 existing ordinary shares through its broker, Turner Pope Investments (TPI) Limited, on 19 March. The ordinary shares worth 0.5 pence each had a placing price of 4.8 pence per share.

According to the company’s board, it has removed the potential of a share sale overhang due to the placing and will thus help strengthen the company’s long term and institutional shareholder base. The company has identified this as a key aspect of the company’s investor relations strategy.

(Source: EODHD/Others, Thomson Reuters)

Powerhouse Energy Group’s shares were trading at GBX 6.82, up by 1.75 per cent on 23 March at 08:59 AM GMT+1, while the broader index FTSE AIM All Share stood at 1,200.02, down by 0.24 per cent. Its market cap was at £262.37 million, while its 1-year return was at 592.11 per cent.

Also Read: AIM Listed Small Cap Renewable Energy Companies to Look At: EQT, AEG, AFC, and GOOD