- Renewable Energy (Solar, Wind, Hydro, Geothermal, Biomass)
- Fuel Cells & Hydrogen
- Energy Conservation and Enabling Technologies
Alternative energy saves natural resources while being environmentally superior to conventional coal and oil.
Wind, flowing water, energy conservation and geothermal heating are ancient but now employ new advanced technology. Technologies such as solar cells, hydrogen and fuel cells and ocean energy are relatively new. All of the technologies operate efficiently. The present cost effectiveness of some of the newest technologies varies.
Alternative Energy does not include
Coal, Oil or Atomic energy However....
Coal and oil are fossil fuels that cause environmental damage when mined and release pollution when combusted. Alternative energy is cleaner. There are recent technologies that are being used to garner these forms of energy in a far safer and environmentally responsible manner. It is important that we take advantage of the fiscal returns of such energy sources while maintaining our stringent alternative energy policies.
We do invest in natural gas, which is the cleanest of all hydrocarbons, particularly when used in modern turbines and fuel cells. Natural gas is often used to displace dirtier options.
Atomic energy is not included as an area for alternative energy investment
It is unsafe and expensive. There is significant potential for accident or attack, unresolved radioactive waste disposal problems and frequent community opposition. Cost of dismantling atomic energy facilities as they mature or depreciate - likely to be greater than the original construction cost.
Companies West Group may invest in conventional energy companies when they are actively developing or producing such items as photovoltaic solar cells, fuel cells or developing other products and technologies related to the Company’s areas of interest.
Alternative Energy at the Crossroads
Renewable energy is booming. Proof of this is that the titans of enterprise in the United States whom historically have been laggards in the push for renewable sources of energy and the environment at large are being embarrassed into earmarking heavy investment in this sector. The use of solar power has been growing by more than 30% a year and so has wind power. Ethanol is heading for record production levels. And there's no end in sight, given high oil and gas prices, an increasing number of government mandates and incentives, and the first real steps toward tackling global warming. Clean Edge Inc., a research and strategy consultant. predicts that the total clean-energy market will grow to $92 billion by 2013, about seven times its current size of $13 billion. "The investment community is starting to see real opportunities.
In fact, today's renewable business is reminiscent of the computer industry in the early 1980s, when no one knew who the winners would be. That's why many analysts and fund managers recommend investing in a basket of companies.
Wind might produce the biggest winners. A U.S. tax credit of 1.8 cents per kilowatt-hour is in place until 2006, and 19 states now require electricity producers to generate part of their power from green sources. Energy information and services company Platts, like BusinessWeek part of The McGraw-Hill Companies expects that most of the new sources will be wind. One beneficiary could be Denmark's Vestas Wind Systems, the world's biggest turbine manufacturer, which is listed in Copenhagen and trades over the counter in the U.S. It is profitable, and there is more certainty and a more favorable political climate surrounding wind than solar or hydrogen.
Fuel-cell companies are also catching the eye of investors. Their stocks are way down from the speculative peaks of a few years ago, but their products are finally becoming a compelling alternative to diesel-powered backup generators. And they hold the promise of clean, efficient, hydrogen-powered cars, provided costs come down.
A buy-and-hold strategy combined with some selective trading may be the best strategy for cashing in on the alternative-energy boom. We fully expect a few of the renewable energy stocks to hit it big.
