Investing in the Fuel Cell Market

The Most Profitable Contrarian Investment Strategies for 2010 and Beyond
The 2010 Investment U Conference is underway! And even if you couldn't make it, now you can "bring home" more than 30 breakthrough presentations from the conference... Order the Deluxe MP3/Video Library for $99 to listen and view on your computer, or the Premier CD plus MP3/Video Library for $149 to listen to and view anywhere.

Plug Your Portfolio Into The Growing Fuel Cell Market

by Louise Harris, Investment U Research
Wednesday, January 13, 2010

With so much focus on saving the earth’s resources these days, scientists have proposed one alternative after another to take the place of polluting gas turbines, power plants, gasoline engines and standard batteries… and they might have finally found a viable solution in fuel cell technology.

According to HowStuffWorks.com: “Combustion engines like the turbine and the gasoline engine burn fuels and use the pressure created by the expansion of the gases to do mechanical work. Batteries convert chemical energy back into electrical energy when needed.”

However, the site goes on to explain: “Fuel cells should do both tasks more efficiently… [providing] a DC (direct current) voltage that can be used to power motors, lights or any number of electrical appliances.”

Though the technology still has to prove itself in the larger consumer market, businesses have already jumped on the fuel cell bandwagon, pouring significant amounts of money into researching the best ways to utilize it.

That kind of backing – along with enthusiastic endorsements from the media – has created a tantalizingly hot market for investors to delve into.

Fuel Cells Generate Excitement From Asia To The U.S.

Of all the areas of the world actually working to develop fuel cells, Asia easily stands out the most. More than one of its nations has expressed a desire to increase renewable energy dependence by 8% – 20%, and they are literally banking on the new technology working.

So while Asia only spent an estimated $1 million on the technology in 2008, analysts expect the continental region to spend twelve times as much by 2015.

As Asian academics experiment with buildings, treatment plants and automobiles that run off of fuel cells, U.S. companies happily provide the funding. General Motors and Honda Motor Co. ADR (NYSE: HMC) are among the bigger names investing in the trend, and both of them expect to launch cars exploiting the technology just as soon as they can.

Meanwhile, CONSISTEL, the joint venture between Intel Capital and JAFCO Asia, won a contract to supply hydrogen fuel cells to PT Telkomsel, Indonesia’s leading operator of cellular telecommunications services.

Judging by the number of interested parties so far, fuel cells have a very bright future.

A Responsible And Profitable Alternative

Like all new technologies, fuel cells have their share of pitfalls, including how developers still haven’t penetrated the general consumer market and therefore don’t know exactly how it will react to their product. In addition, it costs a lot to obtain the necessary equipment to produce, store and transport viable fuel cells.

Fortunately, nanotechnologies – which control matter on an atomic or molecular level – represent the key to overcoming those problems.

And right now, more than 2,180 organizations are directly working on advancing nanotechnology relating to fuel cells and hydrogen energy. This year alone, they’ll spend $4.7 billion on improving both power sources… practically guaranteeing further breakthroughs and lowered costs for fuel cell operations.

Investors who want to cash in on their genius have several choices, including Allianz Global Eco Trends Fund (MUTF: AECOX) and the Windslow Green Growth Fund (MUTF: WGGFX). Both have followed upward trends over the last month, with no signs of slowing down now.

Similarly, The New Alternatives Fund (MUTF: NALFX), with its stockpile of environmentally-minded companies continues to produce positive returns. And investment researcher, Morningstar, recommends Ceramic Fuel Cells Ltd. (ASX: CFU), a leading developer of high efficiency and low emission electricity generation units for homes and other buildings.

Ceramic Fuel Cells was founded in 1992, and many of its competitors are equally well-established, well-funded corporations… not small, blundering startup companies to take for granted.

If we can take their maturity as proof, the fuel cell technology is here to stay and the profits it generates can only go up.

Good investing,

Louise Harris