Astute investors know that spotting a trend on the horizon, or in its infancy, can offer a number of investment opportunities today. That was the case with green or clean technologies (greentech/cleantech)
Renewable Energy; its Not Your Father’s Fossil Fuel
Renewable energy is a big player in this sector and offers a glimpse of what will soon be commonplace, based partly on trends and partly on government mandates. Cleaner burning fuels, greater mileage, efficient electrical networks and alternate means for powering vehicles are all at the center of the design and manufacturing that will be the central focus for generations to come.
Municipalities and public companies have slowly been adapting to renewable energy. In New River Valley in Virginia, the truck fleet owned by the Pepsi Bottling Group has added twenty-one hydrogen-injected trucks utilizing a fuel system produced by Dynamic Fuel Systems, Inc. a Canadian firm. The portable hydrogen generator that injects hydrogen into the engine’s intake increases mileage and reduces emissions.
Myriad Clean And Green Opportunities
The biggest benefactors of the green/clean tech trend will be manufacturers of electric hybrid vehicles, battery manufacturers, smart grid technology companies, green lighting technology, producers of wind power equipment and non-toxic cleaning products.
From 2002 to 2008, investment in greentech/cleantech grew to $15 billion. That does not include a massive commitment by world governments and major banks. Many countries, that adapted stimulus packages to climb out of the global economic malaise, included big greentech/cleantech spending as a priority area for research and job creation.
A123 Systems Inc. (Symbol AONE.O), a maker of lithium-ion batteries and subsidized by the U.S. government, went public in September (2009) and immediately, the share price jumped 50%. This put the first-day performance of AONE.O solidly in second place for the year for most successful. debuts. The surprising level of interest in the company’s IPO prompted A123 to increase the number of shares available by 2.4 million. A123 System’s batteries power the growing electric car market, A sector that is seeing increased interest by investors.
The collapse of Lehman Bros had a chilling effect on the IPO market during 2009, but that may all change. An avalanche of attention is focused on renewable energy and clean technologies and that could lead to some interesting IPO possibilities.
Solar And Smart Grids
Silver Spring Networks is believed by many observers to be a potential IPO in 2010. Smart grid technology utilizes IT to manage the flow of power over a network. This is done by exchanging information between the provider and the customer. This system is fully automated and allows different devices, which make up the network, to talk to each other. Silver Spring Networks partnered with GE Energy to build a smart grid for a U.S. utility company. GE will provide smart meters for the project.
Rooftop solar panels can provide cheap renewable energy. Solyndra is a manufacturer of photovoltaic systems for the commercial rooftop market based in Freemont California. The company entered into an agreement with Milan, Italy-based Sun System. Solyndra also received $535 million from the Department of Energy in loan guarantees. In addition to the loan guarantees, the company has also received $600 million from investors.
Electric Auto IPO
There has been talk amongst those in the know that electric-car manufacturer, Tesla Motors could be considering an initial public offering. Although the company has denied the rumors, the move would be good timing for the well-funded firm. Tesla has managed to raise $783 million from some big-money investors and venture capital firms. Tesla announced profitability in July of 2009. As the large internal-combustion engine companies release new hybrid and electric models, the maker of the sleek Model S sedan would stir things up in 2010.
GreenCell Technologies IPO
Another highly anticipated IPO is the Canadian company GreenCell Technologies. The HydroCell they produce which is an onboard hydrogen and oxygen gas generator reduces fuel emissions by 50% and fuel consumption by 30%.
Technology That Is Here To Stay
The writing is on the wall; cleantech/greentech is the future of research, manufacturing and investment. The U.S. Department of Energy, which has pledged nearly $100 billion to back a wide variety of green technologies, is just one example of the enormous interest in this sector. The evolving industry based on low carbon research and development will propel this segment and make it mainstream.
The need for high-mileage vehicles, cleaner air, wise power usage and even social media will continue to be compelling forces well into the future.
Commercial First Trading Corporation is a leading financial services firm offering a wide range of services within investment management and wealth management services. The company serves clients worldwide including corporations, institutions, and individuals.
GreenCell Technologies is a Canadian company dedicated to designing and bringing to market, technology-based products for the transportation industry. The current product is called the Hydrocell, an on-board, on-demand hydrogen generator engineered specifically for the diesel trucking and haulage industries.
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GT5 GreenCell Technologies Inc is a Canadian company dedicated to designing and bringing to market, technology-based products in the alternative energy market. The current product is called the HydroCell, an on-board on-demand hydrogen generator engineered specifically for Diesel Transport Trucks.