"Green Shoots of Investments" in the Green Sector

After being the sacrificial lamb during the height of the economic crisis, green companies are again becoming hot investment commodities:

Promising startup firms and cleantech companies who had postponed plans for public offerings are now seeing renewed interest and an influx of venture capital.

In general, these investments are trending away from capital-intensive energy generating technologies such as wind and solar, and moving instead toward those in the areas of efficiency, energy storage and transportation, Reuters said.

Investors seem to be betting that makers of lithium-ion battery and startups in the smart grid sector will do well in the years ahead.

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Experts and industry executives are predicting a significant pickup as early as this fall in green technology investments, with continued improvement through 2010. However, the level of activity is not likely to hit the $2.6 billion peak seen in the third quarter of 2008, they warn.

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Total green technology venture investments surged 73 percent to $572 million in April to June from the previous quarter, according to the Reuters report citing data from Ernst & Young.

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Investors now are more interested in less capital-intensive technology such as those associated with energy efficiency and smart grid technology, Vollen said.

"Everybody still recognizes that energy storage is the holy grail of the sector," he told Reuters.

Inventing in less costly ways to store energy has been a major hurdle in the widespread adoption of renewable energy.

- Brewskie

FERC: U.S. Many Never Need More Coal, Nuclear Plants

This is surprising and time will be the ultimate arbitrator, but still (link)...

The U.S. may never need to build new nuclear or coal-fired power plants because renewable energy and improved efficiency can meet future power demand, the head of the Federal Energy Regulatory Commission said.

“They’re too expensive,” Jon Wellinghoff told reporters today at a press conference in Washington hosted by the U.S. Energy Association. “The last price I saw for a nuke was north of $7,000 a kilowatt. That’s more expensive than a solar system.”

Wellinghoff, a Democrat, was appointed chairman by President Barack Obama last month. He has served on the commission since 2006.

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“There’s 500 to 700 gigawatts of developable wind throughout the Midwest,” he said, and “enough solar in the southwest, as we all know, to power the entire country. It’s a matter of being able to move it to loads.”

Demand reductions and electricity storage could offset the intermittent nature of wind and solar, he said. The U.S. currently has generating capacity of about 800 gigawatts, Wellinghoff said. There is also “at least 100 gigawatts” of hydropower, not including offshore projects that use wave and tides to generate electricity, said Wellinghoff.

Natural gas power plants will continue to be needed to help bridge the transition to renewable power, he said.

I'm open to thoughts on this one.

- Brewskie

Forecasts in Geothermal

After scrolling past a boring introduction, you should find some good forecasts for geothermal, truly a good industry with a promising future.

Geothermal Energy Forecast

Global geothermal energy capacity will grow 89% between now and 2015, according to the most recent information available from GlobalData. Capacity will surge from 11,0007 MW at the end of 2008 to over 20,800 MW in the next six years.
Here's the chart:

And in case you're interested, here's how the market share shakes out by
region:

Asia-Pacific, 47.6%

North America, 42.3%

Europe, 10.0%

South America, <0.10%>

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Geothermal Energy Investment Forecast

Like most other market sectors, geothermal stocks have lost significant value over the past year. Here's the visual:

Losing 50% of your value in two years is no joke. But indicators are pointing to a rebound in the geothermal sector that will coincide with growth in geothermal capacity. It only makes sense, right?

The recently-passed stimulus did its part to ensure investing in geothermal energy remains attractive. The bill extends the production tax credit (PTC) until 2013, allowing project developers to recoup 30% of a new plant's cost. The stimulus creates a cash grant program to support the industry as well.

It's a win-win according to Geothermal Energy Association executive director Karl Gawell:

"We estimate that the geothermal power industry has doubled its workforce in the US in the past two years, and the economic stimulus bill provides a framework of support that will continue if not accelerate growth in this industry adding tens of thousands of new jobs with even greater positive effects across the economy."

Federal incentives will lure private capital to the sector, allowing financing to go through for new projects. Banks will be more likely to lend given a 30% credit that gives stability to and reduces payback times.

For some info. on current and upcoming geothermal projects, check out this post at Peak Oil Debunked, an always excellent blog.

- Brewskie