State regulators celebrated the success of the first-ever auction of greenhouse gas emission permits in California. The auction sold-out all 23 Million allowances at a price of $10.09 per ton of carbon, raising $289 million in new revenue which should help California reduce its carbon footprint. A portion of the new funds will go back to utility consumers to offset higher electricity rates.
While some speculated that big banks will jump into the new carbon market and buy up allowances, 97 % of the purchases were done by the target market –companies that must reduce greenhouse gas emissions. The candosuccess of the auction is a clear indication that the business community is taking the new carbon emission market seriously.
Four American Alternative firms poised to take advantage of the next economic wave
Global economies are now looking into new innovations to meet the demands presented by modern challenges. The companies providing these innovations will see a rapid increase in demand over the next few years as economies flows towards firms who offer the best solutions.
Here are four companies that are now deploying new ideas in preparation for the next big leap:
Ocean Power Technologies, Inc. (OPTT)– creates buoys that generate electricity from the kinetic energy of ocean waves.
UQM Technologies, Inc. (UQM) – makes efficient propulsion systems for electric vehicles.
GT Advanced Technologies Inc. (GTAT) – manufactures machines that help make solar panels and light emitting diodes.
Trex Company Inc. (TREX) – manufactures attractive and durable lumber substitutes from reclaimed wood and plastic wastes.
EPA rejects request to ease ethanol mandate
Federal regulators rejected a request from eight U.S. governors to waive requirements for blending corn-based ethanol into gasoline, a mandate said to be driving up food costs during the worst drought in the last half century.
The Environmental Protection Agency said it found no evidence of severe economic harm, a determination needed in granting support for the waiver.
This year’s corn harvest is forecasted to yield 10.72 billion bushels, the smallest in six years because of the drought. 42% of this yield will be used to make ethanol as gasoline refiners will be required to blend 13.2 billion gallons of the biofuel this year.
Another week of woe for Chinese Solar Panel Manufacturers
China’s solar panel makers took another hit this week, announcing shipment downgrades and job cuts in response to oversupply and high production costs caused by import tariffs imposed by the U.S. government.
Trina Solar have reported losses for the last four quarters and the world’s largest solar manufacturer, Suntech, is no exemption. Suntech says that tariffs on solar cells added to existing tariffs on aluminum frames increases the cost of manufacturing and thus squeezes their profit margin. Because of the pressure, the company reduced its production shifts and has announced job cuts.
Some experts say that Chinese Solar companies are no longer viable businesses, projecting that China’s entire solar industry may eventually be bankrupt or bailed out in some form.
Leading Photovoltaic company, up for Sale
SolFocus, which is one of the leading concentrating photovoltaic companies in the world, announced that it is restructuring the business and hopes of finding a buyer.
The company produces photovoltaic cells and develops them into projects allowing the company to achieve continued growth over the past six quarters.
This privately held company has grown through investments, which has topped $200 million to date. But, even with the support that it has been getting, the company faces the same issues experienced by the entire solar industry. The company hopes that this bold move will be the answer in order for them to continue their growth.