Everyone knows the thesis; traditional sources of energy (coal, oil, and gas) are finite in supply and their cumulative use is having noxious side effects which are playing a major part in damaging the global climate. The latter can also be said for the existing non-fossil fuel option, nuclear power. Things have to get cleaner, through use of resources which will not be expended by energy generation, i.e. alternative energy sources or renewables. For the purposes of this article, bio-renewables, i.e straw and wood are classified as fossil fuel based and not alternative energy. [1]
As I see it, alternative energy investing has three key elements:
- Identify all of the physical options;
- Decide which from (1) above has the most to offer;
- Look for the usual investment requirements amongst the most attractive options (remembering that the usual avenues are not available in some of the alternatives listed below).
Stripped of any technical explanations and in no particular order, renewables are:
- Solar Power/Thermal Solar/Photovoltaic (PV) – absorption of the sun’s rays by conductive materials and conversion into electricity and the production of heat.
- Wind Turbines – an extension of using the power of the wind, which we’ve always done.
- Heat Pumps – moving heat within the ground to heat buildings or the process in reverse to cool buildings. Iceland have been using its geothermal springs for this purpose for 80 years.
- Ocean Thermal Power- utilising energy form the sun absorbed by the oceans (two thirds of earth’s surface).
- Biomass- organic matter (incl. waste) that has chemical energy content when burnt, ethanol as an alternative/additive for internal combustion engines.
- Fuel Cells and Hydrogen – the commonest element of all , 75% of the universe, can be converted to an energy source.
- Tidal and Wave Energy – the energy caused by a combination of the sun, moon and the earth’s centrifugal force - very difficult to extract.
Investments in these markets is of necessity early stage and perhaps better placed through a managed invest fund, a few of which are highlighted below. For those seeking big payoffs from individual companies in the longer term, a few have also been highlighted here.
A. Companies
Solar Power
Evolution Solar (US OTC $EVSO) - Arizona based, this is an emerging industry leader and in prime position to take advantage of the expected 30% annual growth in the US Solar PV…
