Pension funds, foundations going green

Pension funds and foundations are increasingly looking to put their money in corporations with green environmental practices, the New York Times reports. Some now even demand it, and are leveraging their influence to make companies act greener. But others are still nervous that going green will hurt their earnings. Some smart money is figuring that the introduction of carbon taxes is going to make green investing much more attractive in the long run.

David Adams, Times staff writer

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How the alternative energy industry is reviving the Rust Belt

The New York Times ran this fascinating article in the weekend Business section about how the alternative energy industry is already beginning to have an impact in recession hit manufacturing communities. The article visits towns in Iowa where factories have been closed and jobs moved overseas. At a former Maytag/Whirlpool washing machine factory in Newton, Iowa, an Arizona-based firm TPI is now making wind turbine blades. Of the 1,800 jobs lost, about 700 jobs have returned.
It's a similar story in West Branch, where an old hydraulic pump factory closed and Spanish energy company, Acciona, moved in.

This articles provides good examples of what both presidential candidates have spoken of, (without ever giving many concrete examples) when they refer to the role alternative energy can play in reviving the U.S. economy and creating millions of new jobs.

(Photo from The New York Times)

- David Adams, Times Staff Writer

'Recession-busting' investors looks to renewable energy

A British firm, Keydata, is one of several fund managers seeking to offset the current recession with investments in renewable energy sources.

The company is seeking to raise $244.1-million for a new fund investing in small-scale power plants in Europe that generate electricity from wood waste, according to Reuters. (See my previous post on Florida Crystals wood waste power plant at Okeelanta, neat Lake Okeechobee.)

Keydata says wood waste power plants are currently more efficient than wind farms. In the UK, providers of renewable electricity are awarded a Renewables Obligation Certificate (ROC) for every megawatt hour they produce. The ROCs are then sold to mainstream electricity suppliers aiming to meet a renewables output quota each year.

David Adams, Times staff writer

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How will lower gas prices impact alternative energy solutions?

Here's a question on many minds: How will lower gas prices affect the push for alternative fuels?

Here's a couple of thoughts, plus a link to an article in the Washington Post today examining the new scenario. The New York Times followed up Tuesday with a similar article.
The first point I would make is that we have seen so many swings in gas prices over the past year that I can only imagine no one is making any firm bets where prices will be in six months. That uncertainty is not good for either fossil fuel producers or alternative energy promoters, who both need a stable financial environment to make their business plans.
Second, I would recall months ago being told by renewable fuel advocates that ethanol was a viable product while oil was at $50 a barrel. While oil has been falling, $50 still seems like a long shot today.
Falling consumer demand in the power sector (see our recent story) could also disrupt plans for new energy production in some markets (including Florida) currently considering the expensive nuclear option.

Swimming in green, or drowning in CO2?

The great greening of America gets mixed reviews, according to the inaugural GreenBiz Index, a first-of-its-kind benchmark of “green” released today.

Much-hyped greening is real, but incremental, concluded Joel Makower, author and expert on corporate environmentalism. In the report, “The State of Green Business 2008,” he noted the move toward a carbon tax or carbon cap-and-trade scheme that could reduce greenhouse gases, but said there’s a lot of work remaining. He lauded the auto industry’s foray into plug-in electric hybrids, although the cars remain years away from an appearance on your car dealer’s lot. Corporate truck fleets, like Wal-Mart’s, have committed to shedding gas-guzzlers and reducing greenhouse gas emissions. Consumers found all sorts of green claims on store shelves, but remained wary of the earth-friendly pledges. Well building went bust, green building provided a bright spot, with energy-efficient construction expected to double in size to a $4.7-billion market by 2011.

-Asjylyn Loder, Times staff writer

Major growth in new energy investment

Investment in clean energy grew by 41 per cent in 2007, pushing through the $100 billion barrier to reach $117.2 billion, according to New Energy Finance, a UK based alternative energy research firm.

Click here to read more from NewEnergyFinance.com

- David Adams

Al Gore's latest venture is a capital one.

Al Gore is joining Silicon Valley venture capitalist firm, Kleiner, Perkins, Caufield & Byers in to build a global energy business, according to Fortune magazine. Looks like that finally rules him out of a presidential bid.

Click here to tread more from Fortune.

- David Adams

Identifying winners in the 'clean tech' stock market: SunPower, Covanta, Cree, Comverge .....

If you follow energy stocks, and have some money invested, these are interesting times (risky too) for anyone trying to guess which stocks look best in the long term.

When oil hit $75 a barrel in 2005, many "experts" predicted the price would quickly drop back to the $40 a barrel range. For that reason they argued that ethanol-blended fuel and other alternatives would struggle to compete with traditional fossil fuels. Well, they were wrong, and the future has never looked brighter for renewables.

Even so, working out which options are best - solar, wind, biofuels - and which companies have the best business plans, is no easy task.

I don't consider myself an "expert," so I won't hazard a guess. (I just hope my 401K managed fund is doing the right thing and has identified some good investments).

Instead, click here for a recent clean tech stocks analysis from The New York Times. The article features several companies including solar cell manufacturer, SunPower Corp, waste-to-energy electric company, Covanta Energy, LED lighting manufacturer, Cree, and Comverge, which provides power companies with electricity demand reduction technology.

- David Adams

SolarCity expanding in California.

To see how solar energy is growing on the west coast, visit the website of SolarCity.

This company claims to be California's fastest growing solar systems implementation company. It just closed its largest round of fundraising to date with $21 million in new investments.

SolarCity offers a unique community-based solar program designed to increase citywide solar adoptions. By encouraging entire neighborhoods to convert to solar, residents receive guaranteed low price. SolarCity is also donating installations of 1 kW solar demonstration systems at local schools to further build community awareness and understanding of the potential of solar energy.

Click here to visit SolarCity's website.

- David Adams

Clean Investing

Looking to put your money where your mouth is but you're not sure where to invest? Clean Edge, a company that analyzes clean-energy technology markets, wants to help. A page on the Clean Edge web site offers an A to Z listing of clean-energy technologies and their stock market performance. Check it out here.