Top 5 green energy stocks to buy in October

Highlights

• Record natural gas prices have caused a major energy crisis in the UK
• UK business secretary Kwasi Kwarteng said that investing in renewable and getting gas off the grid is the only way to address this challenge in the long term

The UK has been mired in a gas supply crisis caused by strong global demand recovery, low supply from Russia and a low reserve ahead of the winter season, amongst other factors. Moreover, a parallel crisis caused by a shortage of qualified HGV drivers due to the country’s deepening supply chain disruption has added to panic buying and chaos in the UK.

Gas prices have touched record highs and, as per many experts, are expected to remain at these prices until 2023. This will put further pressure on the domestic petrol supply crisis.

The UK’s business secretary Kwasi Kwarteng has now said that a transition towards green and renewable, energy is the only long-term solution to avoid such an energy crisis in the future.  Mr Kwarteng added that the government remains committed to invest in renewable energy and get gas off the grid.

About 22 million households in the UK are dependent on gas as a source of fuel.

© 2021 Kalkine Media

The London Stock Exchange (LSE) introduced the Green Economy Label mark in 2019 as a way to highlight companies that are involved in the global transition towards low carbon and sustainability.

Let us take a look at the top 5 FTSE listed stocks in the green energy sector that have been issued with LSE’s Green Economy mark and are good options to include in your portfolio.

1. Good Energy Group PLC (LON:GOOD)

FTSE AIM All-Share index firm Good Energy is a leading UK based renewable energy supplier, which generates and purchases renewable electricity.

Another British green energy supplier Ecotricity recently accelerated its takeover offer acceptance deadline for Good Energy from October 10 to October 8, in order to conclude the offer as quickly as possible amid surging prices that has resulted into the collapse of several energy suppliers.

Ecotricity increased its hostile takeover offer from 340 pence per share to 400 pence per share last week on 16 September.

However, Good Energy had rejected the earlier offer citing it was pricing the company too low and urged its shareholders to reject it as well.

Good Energy has a market cap of £ 51.59 million and a one-year return of 84.05 per cent as of 28 September.

2. AFC Energy PLC (LON:AFC)

FTSE AIM UK 50 index constituent AFC Energy is a leading hydrogen power generation company.

The company’s hydrogen power generator was the main source of fuel for the Extreme E's all-electric off-road ODYSSEY-21 race vehicles in this year’s racing season.

So far, 3 races have been completed in Saudi Arabia, Senegal and Greenland and are now headed to the fourth race, which will be held in Sardinia, Island X Prix. The race is scheduled for next month on the 23rd and 24^th of October 2021.

The company had recently entered a collaboration agreement with partner Urban-Air Port Ltd for Hydrogen fuel cell supply and will provide a fuel cell system on lease.

AFC has a market cap of £396.59 million and a one-year return of 210.52 per cent as of 28 September.

3. Ceres Power Holdings PLC (LON: CWR)

FTSE AIM UK 50 index constituent Ceres Power is a leading fuel cell technology and engineering company. The company was recently awarded funding for two different projects, which are a part of the Clean Maritime Demonstration Competition.

The plan is to distribute the total value of £23 million amongst 55 projects. Ceres’ projects will involve the use of its solid oxide fuel cell (SOFC) technology to reduce carbon emissions in the shipping and maritime industry.

Ceres has a market cap of £2,170.69 million and a one-year return of 103.82 per cent as of 28 September.

4. EQTEC PLC (LON: EQT)

FTSE AIM All-Share listed company EQTEC is a leading bioscience energy firm.

The company, in its H1 2021 results, had reported an oversubscribed placing of £16 million in new development capital. Its H1 2021 revenue stood at EUR 0.5 million, mainly from technology sales.

The company also increased its engagement with policymakers and other ESG groups ahead of the key COP26 UN climate summit, which will be hosted by the UK in November.

EQTEC has a market cap of £ 107.04 million and a one-year return of 168.87 per cent as of 28 September.

5. Inspired Energy PLC (LON: INSE)

FTSE AIM All-Share listed company Inspired Energy is commercial energy and sustainability advisor.

Its H1 2021 revenue rose by 31 per cent to £32.6 million, from £24.9 million in H1 2020. The rise was mostly driven by organic growth that the company has witnessed after a recovery in the industry, market and its customers.

It also declared an interim dividend of 0.12 pence per share, up by 20 per cent from 0.10 pence per share in H1 2020.

Inspired has a market cap of £ 168.16 million and a one-year return of 22.34 per cent as of 28 September.

Bottom Line

The UK has been trying to position itself as a leader in climate change and sustainability and is also set to host the COP26 UN climate talks in Scotland in November. Due to this, the country has increased its investment in renewables and other sectors which need to be decarbonised.

As the country grapples with the current energy crisis, the government should continue to ramp up its investment in alternative energy to not just ascertain its energy security but also to be a leader in addressing climate change.