Tuesday, March 15, 2011

Investing in Clean Energy!

With all of the nuclear meltdown fear and concern over  safety, it's a good time to talk about clean and sustainable energy.

Sustainable energy sources are defined as forms of energy that meets the needs of the present without compromising the future. These forms include renewable sources such as solar energy, wind power, hydroelectricity, geothermal power, wave and tidal power, and certain forms of plant matter, in addition to technologies that improve energy output from these sources.

What are the Types of Renewable Clean Energy?

Solar Energy: China is currently a world leader in the renewable energy sector, followed by India Germany, Spain, the United States and India. India, one of the sunniest countries in the world boasts over 300 sunny days per year and is quickly becoming a contender in solar energy development.
Photovoltaics: Photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity by using solar panels containing a photovoltaic material (silicon, telluride, copper indium among others).

Wind Power: According to the Global Wind Energy Council (GWEC) , wind energy capacity grew 22.5% in 2010  even though coal and natural gas remain cheaper in leading power consuming nations. China has surpassed the United States as the world leader in wind power, including the number of installed and manufactured wind turbines. China benefits from low labor cost, low capital cost, government support, and preferred access to rare earth materials such as neodymium and dysprosium.

Hydoelectricity: China’s is also the world leader in hydropower installation with the goal to eventually replace coal with hydroelectricity as the major energy source.

Geothermal Power: Geothermal energy is non-carbon based energy source that is environmentally friendly, and doesn't release harmful greenhouse gases into the atmosphere. Geothermal power is derived from energy found along tectonic plate boundaries where earthquakes and volcanoes are concentrated used in three types of energy production including, dry steam plants, flash steam plants and binary cycle power plants that transfer heat between liquids to power turbines.

Wave Power: Wave energy uses the energy density of waves from the oceans to create a renewable zero emission source of power. Over 100 small companies around the world are employed in converting the sea’s power to electricity.

Tidal Power: uses the tide cycles to generating electricity. As far back as the Middle Ages, small tidal mills in Scotland and Europe were built. The world’s first and major tidal energy power plant was built at La Rance in France in 1996.


Clean Energy Companies Listed on the Toronto Stock Exchange:
5N Plus Inc. VNP 
Algonquin Power & Utilities Corp AQN 
Alter NRG Corp. NRG 
ARISE Technologies Corporation APV    
ATS Automation Tooling Systems Inc. ATA 
Azure Dynamics Corporation AZD 
Ballard Power Systems Inc. BLD 
Bennett Environmental Inc. BEV 
BioExx Specialty Proteins Ltd BXI 
BioteQ Environmental Technologies Inc. BQE 55.9 BC Y
BIOX Corporation BX 
Boralex Inc. BLX 
Boralex Power Income Fund BPT 
Brookfield Renewable Power Fund BRC 
Brookfield Renewable Power Preferred Equity Inc BRF 
Burcon NutraScience Corporation BU 
Capital Power Income L.P. CPA 
Carmanah Technologies Corporation CMH 
Cascades Inc. CAS 
 China Wind Power International CNW (my pick)

Day4 Energy Inc. DFE 
Dynetek Industries Ltd. DNK 
Electrovaya Inc. EFL 
Genesis Worldwide Inc. GWI 
Gerdau AmeriSteel Corporation* GNA 
GLV Inc. GLV 
Hemisphere GPS Inc. HEM 
Hydrogenics Corporation HYG 
Innergex Renewable Energy Inc. INE 
ISE Limited ISE 
Macquarie Power & Infrastructure Income Fund MPT 
Magma Energy Corp. MXY 
Marsulex Inc. MLX 
New Flyer Industries Inc. NFI 
Newalta Corporation NAL 
Northland Power Income Fund NPI 
Palko Enviornment Ltd PLK 
Plutonic Power Corporation PCC 
Primary Energy Recycling Corporation PRI 
ProSep Inc. PRP 
Ram Power Corp RPG 
RuggedCom Inc. RCM 
SunOpta Inc. SOY 
 Tembec Inc. TMB  (my pick)
Timminco Limited TIM 
Turbo Power Systems Inc. TPS 
U.S. Geothermal Inc. GTH 
 WaterFurnace Renewable Energy Inc. WFI  (my pick)
Westport Innovations Inc.* WPT 
Xebec Adsorption Inc XBC 
Zongshen PEM Power Systems Inc. ZPP 


Some of the Top Companies Listed in The United States:

Portfolio 21's Top 10 'Green' Companies for 2011:
On  December 30, 2010 Global mutual fund Portfolio 21 (PORTX) announced its Top 10 Green Companies for 2011. These companies demonstrated the qualities of innovation and leadership, a distinct competitive advantage and the potential for long-term value according to CEO and Chief Investment Officer Leslie Christian.

ABB provides power and automation technologies that enable a wide range of industries, including utilities, to improve their performance while lowering environmental impact. ABB is also the world's largest supplier of the electrical heart of wind turbines. ABB's products are well positioned to respond to the global demand for reliable and efficient electricity delivery.

Cisco provides networking products and services for home and business communications. The company is positioned to respond to the global demand for data centers, cloud computing, and collaborative technologies that minimize travel and associated environmental impacts. In 2010, Cisco further improved its competitive position within the virtual communications sector through its acquisition of another Portfolio 21 holding, Tandberg.

Eaton provides electrical systems and components for power distribution that reduce energy use. Eaton's customers include renewable energy and hybrid vehicle companies. In 2010, Eaton joined the Department of Energy's Save Energy Now LEADER program, pledging to reduce the company's own energy use by 25%, indexed to sales, between 2006 and 2016.

Growthpoint is a real estate management company with a portfolio of commercial, retail, and industrial properties in South Africa and Australia. Recognizing that buildings consume 40%-50% of the world's energy, Growthpoint is leading the implementation of green building and energy saving practices in South Africa and is an active participant in development of the country's first commercial green building standards.

IBM's hardware and software business services assist customers in reducing energy consumption and costs. For example, this year IBM and Schneider Electric (another Portfolio 21 Top 10 pick) announced a new combined solution to manage energy efficiency in buildings. IBM has made impressive reductions of its own greenhouse gas emissions and is part of the Green Power Market Development Group and the Chicago Climate Exchange.

Johnson Matthey's core skills are in catalysis, precious metals, and fine chemicals. Catalysts are seen as a boon to green chemistry because they enable chemical reactions to be carried out under milder conditions, require less energy, and use fewer toxic chemicals and solvents. Chemical catalysts are also expected to help produce clean fuels, convert waste and green raw materials into energy, and improve emissions from combustion engines.

Novozymes is the world leader in biotechnology-based industrial enzymes and microorganisms. These enzyme products can reduce the use of energy, raw materials, and harsh chemicals, as well as reducing waste. In 2010, Novozymes launched a new enzyme product to produce fuel from agricultural waste, which is a competitive alternative to gasoline in both price and performance.

Ormat is a geothermal and recovered energy company. The company also has efforts in thermal solar and biomass. Ormat has installed approximately 1,300 MW of geothermal and Recovered Energy Generation power plants. Favorable regulatory environments and governmental initiatives to promote clean energy are creating potential for Ormat to grow in established and new markets.

Schneider Electric provides energy automation, monitoring, and control solutions for utilities, buildings, and other infrastructure uses. The company also makes energy saving devices and power supply equipment for solar and wind power systems. In 2010, Schneider continued its partnership with IBM to launch a new system for data center energy management.

Tennant Company is a leader in equipment for floor maintenance and outdoor cleaning, specializing in chemical-free products. Utilizing the Natural Step Framework, the company studies the life-cycle environmental impacts of its products. Tennant currently offers an eco-friendly portfolio of products, including Green Seal-certified cleaning agents, and its ec-H2O cleaning machine, which requires only water and no added chemicals.

Happy Investing!
Disclaimer: The author currently owns China Wind Power (CNW: TSX).

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