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

Highlights 

  • Powerhouse Energy’s partner Hydrogen Utopia International (HUI), with exclusive rights over the DMG technology in Greece, Poland, and Hungary, closed a £2.2 million fundraiser on 9 September 2021. 
  • Ceres completed 10kW solid oxide fuel cell (SOFC) system development for houses and buildings in September 2021 through its Korea-based strategic partner Doosan Corporation.

The UK economy is striving to switch power sources to renewables and attain net-zero emissions. Rising climate change concerns are emphasising the shift from carbon-based fossil fuels to clean energy alternatives. The large-scale decarbonisation of the economy will require huge investments to achieve net-zero targets by 2050. Renewable/clean/alternative energy sources will play a pivotal role in this transition.

Powerhouse (PHE) & Ceres (CWR): One year return and market cap

(Data source: Refinitiv)

Here is a detailed review of 2 AIM-listed clean energy stocks.

Powerhouse Energy Group Plc (LON: PHE)

Powerhouse Energy is engaged in the sustainable production of hydrogen from non-recyclable plastic waste.

The shares of the company are trading at GBX 4.35, down by 0.69% at 12:10 PM BST on Friday 24 September 2021. The market cap of the company currently stands at £172.72 million.

Recently, Powerhouse Energy’s partner Hydrogen Utopia International (HUI), with exclusive rights over the DMG technology in Greece, Poland, and Hungary, closed a £2.2 million fundraiser on 9 September 2021. HUI would use the proceeds to purchase long-lead items to build a basic syngas model in Konin, Poland. In August, Powerhouse Energy acquired a 48% stake in Engsolve, an engineering consultancy, for a cash consideration of £99,990.

Over the last one year, the shares of Powerhouse Energy Group have given a return of 53.62% to shareholders.

Ceres Power Holdings Plc (LON: CWR)

Ceres Power is engaged in developing and commercialising fuel cell technology. It develops clean energy solutions aimed at improving air quality and tackling climate change concerns.

The shares of the company are trading at GBX 1,128.00, down by 2.84% at 12:29 PM BST on Friday 24 September 2021. The market cap of the company currently stands at £2,210.67 million.

Recently, Ceres Power Holdings announced the successful completion of two separate projects that were awarded funding as part of the UK Department for Transport’s Clean Maritime Demonstration Competition. Its strategic partner Doosan Corporation in Korea completed 10kW solid oxide fuel cell (SOFC) system development for houses and buildings in September 2021. 

Ceres Power’s revenue was £17 million for the six months to 30 June 2021, registering an increase from £8.9 million in H1 2020. Its order book and pipeline stood at £42 million and £44 million respectively, for H1 2021 compared to £54 million and £44 million as of 31 December 2020.

Over the last one-year, Ceres Power Holdings shares have given a return of 102.00% to shareholders.

Bottom line

Clean energy sources currently contribute to a small fraction of the total energy supplied in the UK. However, industries across the country are focusing on transitioning to clean and renewable energy sources to minimise their carbon emissions. Rising investor interest in clean energy stocks is being propelled by the increasing emphasis on attaining net-zero emissions and decarbonisation of the economy.

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