The future must
entail clean, renewable energy. There are only a few alternatives to
the hydrocarbon-based energy: Solar energy, Bio-fuels, Geothermal
energy, Hydro-power, and Wind energy
In each sector, there are good companies to consider.
1. Solar Power.
Warren Buffett's investmented in
two utility-scale solar projects supplied by
First Solar (FSLR).
Falling solar panel prices also bode well for consumers as widespread
acceptance and increasing affordability have increased the industry's
demand and long-term future. First Solar remains one of the few viable
investments in this sector, with its industry-leading margins that have
kept the company profitable throughout the crisis.
2. Biofuels.
The industry is trying to shake off the negative image of
unsustainable ethanol.
Innovative and proven second
generation technology exist but is struggling remains to raise
capital and gain public acceptance. Capital investment is needed to bring commercial scale production
capacity online.
Most advanced in this area is
Solazyme (SZYM),
which utilizes algae-based technology to convert non-food sources into
renewable oil equivalents, chemicals, food and even cosmetics.
One company providing sustainable ethanol
is Cosan (CZZ),
a Brazilian-based sugar company leading in ethanol production
capacity and distribution capabilities. American ethanol
subsidies have come to an end so Brazilian-based ethanol companies may
continue to outshine their counterparts in America.
3. Geothermal Energy.
Geothermal is a comparatively small industry. . Yet is one of the more stable
prospects.
Ormat Technologies (ORA). founded 1965 is the only vertically integrated
provider of geothermal energy.
4. Hydropower.
Hydropower is a stable and longstanding industry.
Hydropower companies tend be utility companies requiring large longterm
capital expenditures to build a dams and other infrastructure..
Brazil remains one of the greatest developers
of hydropower with its vast river resources, abundant rains, and lack of
alternatives when it comes to energy sources.
Centrais Electricas Brasileiras (EBR), - Electrobras, operates 29 hydroelectric plants
throughout Brazil. The company is diversified into thermal, coal
and oil power generation units,
5. Wind Energy.
The wind industry is dominated by China, which
dethroned the United States in 2010 as the largest wind power installer.
General Electric (GE) or
Siemens (SI), neither of which are pure plays..
China Ming Yang Power Group (MY), trading on the NYSE since 2010,
is the largest non-state
owned wind turbine manufacturer in China.
The company has encountered
rising expenses and difficulties including weather related interruption to
installations.
Management has initiated a share repurchase program
for $50 million, company market capitalization of $359 million as of January 23, 2012.