Alternative Energy Investments
Alternative and Renewable Sources of Energy Are Bringing a New Source of Investment Profits
By the Investment U Research
Twenty-five years ago, President Reagan ripped out solar panels from the White House that his vanquished predecessor, Jimmy Carter, had installed. Reagan said the panels were unsightly and unnecessary. Guess what? They're back. Newer photovoltaic panels – 167 in all – are heating the White House pool and spa, as well as domestic hot water.
They were ordered by President George W. Bush, who, of course, shares more in common with Reagan than Carter. But energy policy in the United States is becoming less and less polarized. Both political parties fear the long-term consequences of gasoline at $3 a gallon, bent crude oil at $87 a barrel, and soaring electricity rates.
In March of 2010, President Obama announced that the federal government, in an effort to reduce our dependence on foreign oil as well as cutting carbon dioxide and other pollution, will lead by example in replacing older cars in the federal fleet with fuel efficient hybrids and plug-in hybrid electric vehicles.
Leading the way is the Department of Energy who is replacing 753 vehicles with hybrids this year. Even though the Department has begun to reduce the overall size of its vehicle fleet, this year, they will bring the total number of hybrid vehicles at the Department to 888.
The U.S. General Services Administration will also play its part. The GSA will double the federal hybrid fleet and has committed to purchasing approximately 100 plug-in hybrid vehicles in 2011.
These steps are part of a broad effort to implement President Obama's Executive Order that was signed on October of 2009, which calls on agencies to cut the federal government's fleet petroleum use by 30% by 2020, among other goals.
These days, people can't seem to get their hands on enough alternative energy. In fact, as this Investment U report shows, renewable – or so – called "alternative" energy sources – are in hot demand. And some of the biggest names in the business, from General Electric to Archer Daniels Midland, are in pursuit of the next great energy wave.
Energy produced from corn, soybeans, water, wind and the sun lead the “alternative” list of sources on the grid. They are being plumbed from the cornfields of Nebraska to the gusty reaches of Wyoming's mountains.
The Mainstreaming of Alternative Fuels
In fact, what was once considered alternative is now mainstream. The advancements in technology and science are fostering a new attitude about alternates to natural gas – oil and coal – which still fuel the vast majority of our nation's energy needs. The war in Iraq and Afghanistan, the never-ending threat of terrorism, and increased competition from China and India for oil has given the renewable energy sector a shot in the arm.
And the number of investment opportunities in these renewable energy sources could be greater than the energy industry has ever seen. That's simply because the industry is spawning new companies that are producing the technology to bring about the fundamental change.
To be sure, capital investments in the renewable energy sector are projected to increase 35% in just one year, from $130 billion in 2009 to $200 billion this year, according to the research firm New Energy Finance. Some of the biggest corporations are financing new products and methods to harness energy. In addition to GE and Archer Daniels, they include:
- Siemens
- Dupont
- Mitsubishi
- Dutch Royal Shell
- Exxon Mobil, and
- Investment banker Goldman Sachs
The biofuels industry has doubled in size in the last year alone. Energy generated by the wind has increased by one-third in the past year. And the solar industry is well on its way to producing more economical photovoltaic panels that require processed silicon. In fact, solar energy appears poised for a technological breakout in the near future.
Biofuels Filling up at Your Local Gas Station and in Your Alternative Energy Investment Portfolio
Biofuels are grabbing all the headlines these days. Willie Nelson began his own biofuels company when he did a little research from his home computer and found that farmers were wasting valuable resources. Bill Gates jumped into the act, plowing $84 million into Pacific Ethanol. Sun Microsystems' founder Vinod Kholsa gave it the thumbs up, as did former Fed Chairman Alan Greenspan.
So why are biofuels such a big deal? First of all, biofuel is energy that comes from biomass. That includes living organisms or their byproducts. Ethanol gets the most headlines because it can be burned in internal combustion engines.
At the moment, most ethanol comes from corn, which is processed so that part of its byproduct can be blended with petroleum diesel to create a biodiesel blend. The United States produces and consumes more ethanol fuel than any other country in the world. Right now, all vehicles can operate on a blend of…
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Related Investment U Articles:
- Subsidies Aren’t the Real Problem for Alternative Energy
- Power Your Portfolio With China’s Renewable Energy Industry
- China’s Renewable Energy Industry Has the Capitol Complainers Out in Force
- America’s Energy Future is “Blowin’ in the Wind”
- As Renewable Energy Risks Rise, Invest in Natural Gas
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