The growing importance of alternative fuel sources to governments and businesses could make Powerhouse Energy Group (LSE: PHE) a terrific penny stock for my portfolio over the next decade.
This UK share has developed proprietary advanced thermal conversion technology (called distributed modular generation, or DMG for short) that turns waste like plastics and rubber tyres into hydrogen. Powerhouse claims that its system is lower cost, can create less waste, and can be used in a broader range of uses than other ‘energy from waste’ technologies.
Powerhouse is setting itself up to exploit a potentially explosive market. Statista thinks the waste to energy industry will grow by almost a quarter between now and 2027 to be worth $50.1bn. But I need to remember that development of its flagship Protos plant remains at the early stages. Any issues in the construction of the site could have significant implications for future profits and sink Powerhouse’s share price.
Another penny stock for the green revolution
The escalating climate crisis also means that demand for Kingspan Group’s (LSE: KGP) construction products is booming. The business sources the majority of its revenues through the manufacture of insulation panels and boards, helping its customers improve their energy efficiency. Its other technologies also help save water and boost the amount of natural daylight coming into buildings.
Kingspan’s operations span Europe, North America, and Australasia, giving it excellent geographic diversity. Sales volumes rocketed 30% in the six months to June, while revenues leapt 36% excluding currency movements and contributions from acquisitions thanks to price inflation.
Turnover could take a hit if economic conditions worsen and the construction sector begins to struggle. But thinking about buying the stock and holding it in my portfolio for the long term, I think Kingspan is a highly attractive ESG stock. Analysts at Researchandmarkets.com think the global foam insulation market will grow at a compound annual growth rate of 4% during the next five years.
An exciting healthcare share
Investing in pharmaceutical stocks can be risky business. Drugs development is packed with hazards. Even if a treatment passes the R&D stage without costly setbacks and delays it may fail to get regulatory approval. But sometimes an attractive healthcare stock comes along that really grabs your attention. Sareum Holdings (LSE: SAR) is one that I’m consdering buying today.
This penny stock produces drugs for the treatment of cancer and autoimmune disorders. These areas alone provide plenty of growth opportunity for Sareum. Indeed, positive patent and testing news on its oncology-related products have helped drive the share price to record highs recently. The company’s decision to make drugs that battle Covid-19 symptoms has also boosted its profits outlook. Its SDC-1801 treatment has proved to be more effective in combating symptoms of coronavirus than other anti-inflammatory steroids.
Sareum is a company that seems to have the wind in its sails right now. Though its products are still yet to hit the shelves, this is a share I think could explode in value during the next decade.
