Alternative Fuels
The alternative fuels sector is about energy obtained from plants and plant-derived
materials, and does not in our definition include non-renewable energy sources
such as nuclear. Plant materials, commonly called biomass, encompass biofuels,
bio power and bio products. For the time being this newsletter focuses on
green energy and ignores the bio products sector. Of the remaining two,
biofuels represent a real issue for us as they are so far failing miserably
on several fronts. In their attempts at displacing fossil fuels as transportation
fuels, ethanol and biodiesel cost too much, pollute too much, and have substantial
environmental and social consequences. As long as they compete for precious
natural resources such as water and arable land and have net negative energy
yields we will not cover them in this newsletter. As investments, most biofuel
companies have been dismal and they rely entirely on government subsidies.
We are however monitoring with interest research and development in several
areas such as jatropha oil and algae which show promise for the future of
biofuels.
For now this leaves bio power which is biomass-based electricity generation,
a sector in which the U.S. is the world leader in installed capacity. Of
all the U.S. renewable generation capacity, biomass is the 3rd largest and
represents 5.1%. In terms of actual generation it is even larger at 8.2%,
owing to its very high capacity factor (biomass plants utilize their capacity
well because they generate power around the clock - unlike wind and solar).
The majority of biomass power plants in service today are direct-fired,
where a feedstock such as wood chips or other vegetal waste is burned to
produce steam to drive a turbine which turns the generator that produces
the electricity. Decomposition of biomass, either by natural decay or through
a process called anaerobic digestion, produces methane which is burned to
generate electric power. Such plants are found at landfills or sewage treatment
facilities. And they remove methane which is a very potent greenhouse gas.
This technology is mature and the space is well developed, which means few
investment opportunities, except for utilities.
List of publicly traded alternative fuels companies and stocks
(note that the tickers are links to Yahoo!Finance
quotes)
Alternative
fuels stock ticker symbol |
Alternative
fuels company names |
Alternative
fuels company website addresses |
|
Alternative Fuel Technologies, Inc. |
|
|
Cosan Ltd. (Cl A) |
|
|
Covanta Holding Corp. |
|
|
Environmental Power Corporation |
|
|
Green Plains Renewable Energy Inc. |
|
|
Gushan Environmental Energy Ltd. |
|
|
Pacific Ethanol Inc. |
|
|
Stratos Renewables Corporation |
|
|
SunOpta Inc. |
|
|
Verenium Corp. |
|
| Note that this list of alternative fuels
companies is not exhaustive, is not a list of stocks in The
Green Investor Portfolio or
represent a buy recommendation. |
Alternative fuels information resources
Alternative
fuels organizations |
Alternative
fuels organization website addresses |
Biomass energy research
association BERA |
|
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