Powerhouse (PHE) & ITM: 2 AIM clean energy stocks to buy

Highlights

• Powerhouse Energy stated that talks are ongoing with industrial gas major Linde over a potential hydrogen tech partnership.
• ITM Power made several senior management hires on Monday, causing its shares to jump by over 3 per cent.

The clean energy sector is set to boom in the coming years amid the backdrop of a looming climate emergency and as the UK positions itself as a global leader in sustainability.

Two AIM listed alternative energy stocks, namely Powerhouse (LON: PHE), and ITM Power (LON: ITM) were the highest and second highest risers in the alternative energy sector on the LSE on Monday’s close for varied factors.

Let us take a closer look at these 2 AIM-listed stocks in the alternative energy sector and their market performance:

1. Powerhouse Energy Group PLC (LON: PHE)

FTSE AIM All-Share index constituent Powerhouse Energy is a waste to fuel sustainable energy company.

The company confirmed its technology licensee, Hydrogen Utopia International has been holding ongoing discussions with German industrial gases and engineering giant Linde.

If the talks are finalised, they will potentially develop a plant in Konin, Polan, using Powerhouse’s technology.

PHE also stated Linde had finalised a technical feasibility evaluation to deploy its syngas clean up and hydrogen extraction DMG technology.

(Image Source: Refinitiv)

Powerhouse’s shares closed at GBX 5.70, up sharply by 12.20 per cent on 6 September. Comparatively, the FTSE AIM All-Share index ended at 1,314.06, up by 0.30 per cent.

The company’s market cap was at £224.77 million, and its one-year return is 100 per cent as of 6 September.

Related Article: Lens on BP Plc and Powerhouse Energy Amid Divergent Climate Change Developments

2. ITM Power PLC (LON: ITM)

FTSE AIM UK 50 Index constituent, ITM Power is energy storage and green fuel company.

The company made several new senior management team hire for Company Secretary, Operations Director, Head of Marketing and many other roles.

The recruitment is part of ITM’s ongoing recruitment drive to enable strong growth in the firm, which ITM had mentioned in its June trading update.

(Image Source: Refinitiv)

ITM’s shares closed at GBX 520.00, up by 3.17 per cent on 6 September. Comparatively, the FTSE AIM UK 50 index ended at 7,091.84, up by 0.23 per cent.

The company’s market cap was at £2.863 billion, and its one-year return is 112.35 per cent as of 6 September.

Bottom Line

Long term investors would benefit from having exposure to high quality alternative energy stocks, particularly across hydrogen, wind and solar, which are being heavily pushed by the UK government. Especially as clean energy is forecasted to account for a dominant portion of the UK’s energy mix by 2050.

ITM and PHE both have given investors over 100 per cent in shareholder returns over the past year, indicating it can be an attractive buy.

However, AIM stocks are typically high growth small cap stocks with a greater degree of risk compared to blue chip stocks, thus investors must do their own due diligence prior to investing.