Investing
The articles in this section discuss sustainable investing, including how to become a sustainable investor and why it is important to do so.
Green Endeavors
Feb 14th
Who knew you could get an eco-friendly haircut. Green Endeavors Inc. offers just that at 2 locations in northern Utah. The Salt Lake area business boasts that they have never gone green; because they began that way. The two locations both take part in Rocky Mountain Power’s Visionary Blue Sky program; utilizing as much renewable energy as possible. One of the locations, based in Liberty Heights is the only salon named as an E2 Business (Salt Lake City businesses devoted to environmental and economic sustainability).
Now, you’re likely asking why a finance writer is so concerned about a haircut? Well Green Endeavors (GRNE) is traded as a pink sheet. This means the company has shares that trade just like the Dow or the S&P. The price for one share: $0.0003. Would numerous people call this a worthless stock to own? Yes. Is it likely a terrible investment for many people, yes. Can money be made from this investment? Yes.
The first question to ask if you are continuing to read is, what is your level of risk aversion? The younger you are the less aversion to risk you likely have. For $300 a person could purchase 1,000,000 shares of GRNE. That $300 can turn to nothing, or if that stock rises to let’s say a penny a share, you would now have $10,000. Is it likely to see this kind or return? No. It is possible however.
HHNS a company also traded as a pink sheet that manufactures mostly wipes for the medical and veterinary field recently rose from $0.0003 per share to $0.002 per share. No one noticed, no one except investors who gained 667% on this movement.
Normally companies who trade at this price are indeed worthless. Don’t get me wrong, GRNE however has been doing well of late. On January 19th they announced that revenues topped $2.8 million in 2011 as well as seeing December revenues up 15% from 2010. November revenues were up 17% from 2010, also 17% in October and the third quarter saw 29% growth compared to 2010. I think it is safe to say this stock will not hit zero in the immediate future.
Some things to keep in mind when dealing with pink slips are that the market is much more inefficient than more known markets. Differences between the ask and bid price can be large. Also, being able to buy and sell immediately is highly unlikely so one must plan when to buy and when to sell. For example, within a 15 minute span HHNS traded at $0.0015, dropped to $0.0009 and rose back to $0.00015. Anyone who waited to see this move was unable to purchase any stocks.
Overall, GRNE looks to being doing all the right things as well as keeping as eye out for being green, this kind of behavior should be supported by investment regardless of the fact that if this business trend continues the stock price will also reflect the strong gains the company is making.
Written by: Benjamin H. Childers
Image by: http://www.freedigitalphotos.net/images/view_photog.php?photogid=989
Giving Away Money – a Tough Sell
Feb 6th
A Case for Energy Efficiency Rebate Program
If you think it’s hard trying to get a loan from a bank or selling real estate in this economy, try “selling” money. Well, not actually selling money but giving generous rebates and incentives for energy efficiency projects. The sales process is not any easier even when the “product” is cash-back, moolah, money! In these tough economic times, businesses from all levels have pulled back and have become extremely guarded with how they spend their dollars. Accordingly, based on various energy efficiency polls, although public sentiments are aligned with the idea of energy conservation to reduce carbon emissions and to help the environment, many businesses do not plan to implement energy efficiency upgrades because, they can’t afford it.
When the purse strings are tightened, how can the message get across that investing in energy efficiency today only benefits participants in the long haul? “People naturally think there is a catch but the catch is…there is no catch. Owners and managers of large office buildings, medium size retail outlets or any other commercial and industrial facilities interested in improving operations, reducing maintenance costs, lowering energy bills and procuring a more sustainable future, can greatly benefit from an energy efficiency rebate program” said David Pospisil, program manager for the Con Edison Commercial & Industrial Energy Efficiency Program.
Many building owners do want to be energy efficient but are very skeptical about “free money” campaigns. And besides, they can’t spare the upfront cost for major upgrades or to replace older equipment at this juncture is a reoccurring sentiment.
The truth of the matter is, under state regulation, many public and municipal utilities are now required to spend money to help businesses reduce energy consumption. Actually reducing energy output may in fact help the utilities save money by preventing future investments in new facilities and or utility infrastructure. Also, although the upfront cost may be more for these energy efficient upgrades, the investment can offset this in energy savings and lower monthly utility bills. Utility incentives can often make a big difference in one’s bottom line.
Why is Energy Efficiency important in the commercial and industrial sector? Energy is such an integral part of our lives that we often use it without thinking. Being energy efficient means using energy wisely; doing the same amount of work while using less energy. The more efficient we are about energy usage, the less we’ll have to spend and the more environmentally sound we’ll be.
As it stands now, electricity and natural gas account for more than 87% of total energy consumed in the commercial building sector according to the U.S. Energy Information Administration. Making these buildings more energy efficient makes good business sense. And besides, energy costs are the most controllable of a facility’s operating expense.
Because commercial office buildings consume a majority of all energy used, energy efficiency managers target energy efficiency measures with the greatest savings potential. In office buildings, the equipment includes high-efficiency replacement motors, variable frequency drives (VFDs), lighting and controls for heating and cooling equipment. The program also offers a custom program that embraces innovative measures not listed in the equipment rebate program. These may include chiller and/or refrigeration upgrades, industrial process improvements and or compressed air system improvements.
For businesses that do not have an energy management policy in place, now is the perfect time while money is readily available from utilities, federal and local governments for energy audits, equipment retrofit, installations and upgrades. Having an energy management plan in place can help:
- mitigate energy price volatility
- achieve operational cost savings
- improve environmental comfort and building performance
- positively impact net operating margins
Other benefits that may not be on top of the list but are important none-the-less include the psychological benefits. A study by U.S. Department of Energy, Greening the Building and the Bottom Line, found within high performing buildings, productivity rises by as much as 16% due to the office being quieter, more comfortable and with better air and lighting.
It makes perfect sense for businesses to get involved now while rebates are being offered for energy efficiency upgrades as they can be applied back to the operation. “Free money” doesn’t come around that often.
by Katia Lundy, Sr. Marketing Specialist, Member of the Con Edison Green Team
Green ETF’s
Jan 20th
So Christmas went by without a hitch, now all that’s left to be done is prepare for the New Year. Well that and sort out your presents, the trickiest of which is a $5,000 gift from your wealthy uncle with the specification that the money must be used to Invest in a green energy company. What company do you choose? None.
With the sector of green energy being in its infancy it is nearly impossible to determine which companies will thrive and which companies will falter (think dot coms). Depicting where government subsidies and restrictions will be in the upcoming years is just as cloudy. So instead of taking your $5,000 gift and placing it into a few companies with the hope of getting a winner, the answer is exchange-traded funds.
An exchange traded fund is a security that features the tradability of a stock, coupled with the coverage of an index fund. So, instead of investing in say Trina Solar LTD (ADS) because the future of clean energy seems bright to you, take that money and invest in PowerShares WilderHill Clean Energy Portfolio (PBW) which is the largest green ETF (Trina Solar LTD accounts for 4.41% of the ETF’s weight and is the largest holding). This particular ETF has invested in 52 companies which tend to be small companies in the business of fuel cells, solar, semiconductors, basic materials, and utilities.
Let’s say that you don’t believe in all green energy but only solar energy. No problem, look to the Claymore/MAC Global Solar Index ETF (TAN). This ETF holds 30 companies that produce solar power equipment, fabrication companies that make solar panels, solar cell manufacturers, and companies that install, distribute and integrate solar into energy solutions.
With a little research you can find many ETF’s ranging in many green energy selections. Your money will then be diversified among numerous companies that increase the chances you will hold what becomes the industry leader and likely revolutionary company creating promising returns for you.
Things to look at once you find the fuel cell ETF or wind power ETF (whatever section of ETF you want) are the top ten holdings of the ETF, and check these with the key players in the sector. ,Also, note the number of overall holdings, an ETF with five holdings might not be the place for your money. The expense ratio is another thing you should note. You will be able to find many with a ratio below one percent.
In review, consider you receive $5,000 from you rich Uncle Dana. He prescribes that it must be invested in green energy. Taking this sum of money and sending it to perhaps 3 ETF’s (fuel cells, solar, and wind) not only diversifies your money among three top sectors of green energy and numerous companies within each aspect giving you the ability to see the growth within the sector reflected within your portfolio but will simultaneously relegate the failure of one company or impact of a government decision on five companies to an infantile loss.
Written by Benjamin H. Childers.
CPV Renewable Energy Closes Financing for 165.6-MW Wind Farm in Kansas
Jan 12th
CPV Renewable Energy closes financing for 165.6-MW wind farm in Kansas
CPV Renewable Energy Co. has closed financing for the construction of its 165.6-MW Cimarron wind energy project in Gray County, Kansas. The project will use 72, 2.3 MW wind turbines supplied by Siemens. The project is expected to enter commercial operation in November 2012. The wind facility will supply power to the Tennessee Valley Authority under a 20-year power purchase agreement. The project is managed by a CPV affiliate, is being constructed by Wanzak Construction, a MasTec Company, and will be operated by North American Energy Services.
Solar3D unveils breakthrough design improvement to reduce manufacturing cost
Solar3D Inc., the developer of a breakthrough 3-dimensional solar cell technology to maximize the conversion of sunlight into electricity, has launched a design breakthrough that will substantially reduce the mass production cost of its new super-efficient solar cell. The company’s innovative solar cell technology utilizes a 3-dimensional design to trap sunlight inside micro-photovoltaic structures where photons bounce around until they are converted into electrons. Solar3D’s management believes that the breakthrough solar cell design will dramatically change the economics of solar energy.
NaturEner secures $320M construction financing for 189-MW wind farm in Montana
NaturEner USA LLC has secured a $320 million construction loan with Morgan Stanley for its 189-MW Rim Rock wind power project in Montana. The wind project is estimated to achieve commercial operation by the end of 2012. Once the project has reached commercial operation, San Diego Gas & Electric Co. is expected to make a tax-equity capital contribution in the project of about $285 million, subject to satisfaction of certain conditions. The tax-equity investment has been approved by both the California Public Utilities Commission and the Federal Energy Regulatory Commission.
Under a “Green Attribute Purchase and Sale Agreement,” SDG&E will procure the renewable component of the Rim Rock output and use it to meet California’s Renewable Portfolio Standard or “RPS” goal, which is now 33% by the year 2020. The tax-equity investment is a unique transaction designed to pass through to SDG&E’s customers lower utility financing costs. Rim Rock’s wind power will contribute about 3.5 percent of SDG&E’s renewable portfolio per year.
Cool Planet BioFuels begins road testing of negative carbon gasoline in California
Cool Planet BioFuels has received approval from the California Air Resources Board to begin fleet-testing its negative carbon gasoline. Cool Planet BioFuels’ technology converts low-grade biomass — such as grass and woodchips — into high-grade fuel. The process also produces a byproduct, which can be used to sequester carbon and act as a soil conditioner. It makes the product a negative carbon fuel.
Cool Planet BioFuels’ first road tests involve combining negative carbon fuel blendstock with California standard E-10 gasoline to meet California’s 2020 goal of a 10% reduction in carbon intensity versus today’s standard pump gas. The company plans to extensively validate this new technology over the next several months via commercial fleet testing before the fuel is made available to the general public.
Clean Energy Fuels Gets $150M in Investment
Dec 30th
Clean Energy Fuels gets $150M in investment
Clean Energy Fuels Corp., a leading provider of natural gas fuel for transportation in North America, said it has received $150 million from investors, including Boone Pickens. The investments resulted from the exercise of Mr. Pickens’ warrants to purchase 15 million shares of the company’s common stock at $10 per share. Mr. Pickens purchased 1.5 million shares and transferred the balance to existing investors RRJ Capital, Seatown Holdings and Chesapeake Energy Corp., as well as Chief Capital LP, an investment vehicle owned by energy investor Trevor Rees-Jones.
The investments bring the total invested or committed to the company to $450 million during 2011, Clean Energy President and CEO Andrew J. Littlefair said in a statement.
Western Wind buys 42 MW solar panels; secures US cash grant
Western Wind Energy Corp. has signed a module supply agreement with an international, multi-billion dollar photovoltaic panel manufacturer for 42 MW DC for its Yabucoa Project in Puerto Rico. The transaction enables Western Wind Energy to be eligible for the 30% U.S. Federal Tax Free Cash Grant, which is estimated to be about US$45 million. In addition to the US$45 million tax-free cash grant, the company also qualifies for an additional US$64 million of Puerto Rican investment tax credits, which are both marketable and monetize-able. The module supply agreement was secured by a US$12 million loan that will be repaid with the project finance proceeds led by Rabobank’sNew Yorkoffice.
EERC plans to produce energy from coffee-processing plant waste
TheEnergy & EnvironmentalResearchCenterat the University of North Dakota is leading a project to develop an efficient renewable electricity technology for coffee-processing plants. In a partnership with South Burlington, Vermont-based Wynntryst LLC, the EERC will develop a gasification power system to utilize the waste from a coffee-processing plant to produce energy. The project specifically focuses on the waste from the Green Mountain Coffee Roasters Inc. plant.
BP Makes Investment in Cool Planet BioFuels
Dec 29th
BP makes investment in Cool Planet BioFuels
BP Technology Ventures has made an investment in Cool Planet BioFuels Inc.’s C Round. BP followed General Electric, Google Ventures, ConocoPhillips, NRG Energy and North Bridge Venture Partners in investing in Cool Planet BioFuels. The round was led by Shea Ventures.
Cool Planet BioFuels is developing bio based renewable, reduced carbon gasoline that can be blended with conventional gasoline and used in today’s vehicles. In addition to BP and ConocoPhillips, several other energy companies are in the process of testing and evaluating Cool Planet’s fuel with very good results to date. The company expects to announce additional energy company strategic relationships throughout 2012.
SunWater Solar complete two solar water-heating systems in San Francisco
SunWater Solar Inc. and Tenderloin Neighborhood Development Corp. have completed new solar thermal systems at two affordable housing buildings in the heart ofSan Francisco’s Tenderloin District. The two systems, consisting of 40 solar collectors and 24 collectors, respectively, garnered a total of $85,867 in California Solar Initiative-Thermal (CSI-Thermal) rebates.
The solar water-heating systems are one element of TNDC’s Green Retrofit Initiative, an effort aimed at making TNDC buildings more energy efficient. Co-sponsored by the San Francisco Mayor’s Office of Housing and Enterprise Community Partners, the initiative also included boiler replacements, and the installation of energy-efficient lighting and low-flow showerheads and toilets. Fine Line Construction served as the general contractor for the project.
ONYX to provide energy distribution of 22MW solar project
Onyx Service & Solutions Inc. announced a plan to distribute power on their new 22 MW project inRoatan,Honduras. Currently, Roatan has had numerous issues with power outages and much of this has been is attributed to the older distribution system currently in place. ONYX plans to use a cutting-edge repository system for the larger production farms and may decide to utilize its new “Plug-N-Play” panel for smaller output areas. Repository systems store energy for use after the sun has gone down or if there is not ample sunlight for extended periods of time. ONYX’s new “Plug-N-Play” panel already has a battery unit and inverter integrated into the panel straight from the factory.
Mitsui Invests $12M in Tres Amigas
Dec 28th
Mitsui invests $12M in Tres Amigas
Mitsui & Co. Ltd. has agreed to invest $12 million in Tres Amigas LLC, also known as the Tres Amigas SuperStation. In exchange, Mitsui will obtain an equity position and actively participate.
By partnering with Tres Amigas, Mitsui plans to further internationalize their “Smart Green Information Technology” business model, which includes Smart Grid IT, renewable energy development and management and CO2 emissions mitigation strategies. The SuperStation project represents, in essence, the world’s first high capacity “Renewable Energy Hub,” although trading of conventional sources of electricity will be accommodated, too. This first-of-its-kind power transmission hub is designed to interconnectAmerica’s three primary electricity grids, the Eastern, Western andTexasnetworks by utilizing information technology.
The SuperStation will cost $1.5 billion and is expected to be completed in different stages. Engineering design for Phase I is well underway, with construction scheduled to commence in 2012. Phase I is expected to enter commercial operations in 2015.
Ballard’s fuel cell modules to power 25 buses in Sao Paulo, Brazil
Ballard Power Systems has inked a letter of intent with The City of Sao Paulo, Brazil, for 25 FCvelocityTM-HD6 fuel cell modules to power 25 buses in that city. A final agreement with The City of Sao Paulo is now in negotiation. The modules are expected to be delivered in 2012. Ballard Power Systems’ sixth generation FCvelocityTM-HD6 fuel cell module features a control unit which interfaces with a system controller to make it a “plug-and-play” product for any fuel cell or hybrid fuel cell bus platform. The module also offers significant advances in durability, power density and fuel efficiency compared to earlier generation products.
Sempra Generation completes 42-MW installation Mesquite Solar 1 project
Sempra Generation has completed the installation of three blocks of solar panels totaling 42 MW at its Mesquite Solar 1 project inArlington,Ariz.The company expects that the entire 150-MW photovoltaic solar project will be completed in early 2013. The 900-acre solar facility will deliver power to Pacific Gas and Electric Co. under a long-term, 20-year contract.
Mesquite Solar 1 is the first phase of Sempra Generation’s Mesquite Solar Complex, a facility that could grow to 700 MW.
HyperSolar Plans to Produce Renewable Natural Gas Using Solar Power
Nov 16th
HyperSolar plans to produce renewable natural gas using solar power
HyperSolar Inc. has filed a patent application for the production of renewable natural gas using sunlight, water and carbon dioxide. The renewable natural gas is a clean, carbon-neutral methane gas that can be used as a direct replacement for traditional natural gas to power the world, without drilling or fracking, while mitigating CO2 emissions. HyperSolar is developing a novel solar-powered nanoparticle system that mimics photosynthesis to separate hydrogen from water. The free hydrogen can then be reacted with carbon dioxide to produce methane, the primary component in natural gas.
PwC Report: Airlines should build trust in the air
PricewaterhouseCoopers LLP has released a new report of how well the world’s airlines report on corporate sustainability. The PwC analysis has shown that while there has been a positive increase in the number of airlines producing such reports, there is still much room for improvement.
In launching their building trust in the air report, PwC’s global transportation & logistics practice, along with the global sustainability team, sampled 46 airlines including Ryanair, Lufthansa, Qantas and Cathay Pacific. Of those, 30 produced CS reports. A team of experts then rated the quality of the reports using set criteria. The report’s authors expect that it will act as a catalyst to encourage the airline industry to become more transparent for stakeholders such as investors and passengers.
Global Cleantech Cluster Association announces winners of 2011 Later Stage Award
The Global Cleantech Cluster Association has announced top 10 winners of the 2011 Later Stage Award. The winning companies from North America andEuroperepresent the world’s leading cleantech clusters in the categories of biofuels, energy efficiency/green buildings, new materials, renewable energy, solar, storage/smart grid, transportation, waste, water and wind energy. The Later Stage Award Top 10 winners were selected from an original pool of 4000 eligible companies represented by the GCCA’s 33 member clusters.
Bank of America grants $55 million for energy efficiency finance program
Bank of America has selected Community Development Financial Institutions that will receive $55 million in low-interest loans and grants through the company’s innovative Energy Efficiency Finance Program.
The selected CDFIs will receive a total of $50 million in low-cost, long-term loans to finance the upfront investment costs that building owners need to make energy efficient improvements, and $5 million in operating grants to support green capacity-building, staffing, training, reserves, and marketing needs associated with the implementation of the programs. The energy cost savings realized over time will create cash flow to repay the loans.
SURGE Accelerator Program Opens In Houston
Nov 14th
Kirk Coburn, Co-founder and Managing Director of the SURGE Accelerator in Houston, discusses the kind of start-up entrepreneurs that he’s looking for as he builds his team’s inaugural accelerator class. More >
Tips For Making The Right Energy Efficient Investments For Your Business
Oct 22nd
Jeramy Lemieux, Client Savers Lead for Diversey, discusses the strategy his company takes to investing in energy efficiency projects.
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