The Value of Energy Efficiency
I've begun acting as a consultant to the Colorado Energy Efficiency Business Coalition (CEEBC) in a rulemaking docket for Demand Side Management (DSM) case before the Colorado Public Utilities Commission (PUC). In the 2007 Legislative session, the Colorado legislature passed enabling legislation calling for utility-wide Demand Side Management programs for natural gas utilities. To date, all DSM in Colorado has been focused on low income customers. Crucially, the legislation allows for non-energy benefits, such as increased comfort, economic multiplier effects (i.e. jobs), and reduced volatility of energy costs be included in the evaluation of the benefits of programs. ...
Zumtobel Turns LED into Dividends
by Debra Fiakas CFA Based on Austria, Zumtobel Group (ZMTBF: OTC or ZAG: Vienna) is a supplier of modern lighting products using Light Emitting Diode (LED) technology. Zumtobel sells its lights and components under three international brands Thorn, Tridonic and Zumtobel and two regional brands ACDC and Reiss. Zumtobel has a long history in lighting with its foundation in the 1950s in Dr. Zumtobel’s Electrogerate und Kunstharzpresswerk. The Thorn brand, which was acquired in 2000, dates back to the 1920s when founder Jules Thorn set up the Electric Lamp Service Company. Zumtobel sells lights in over...
The Spray Foam Industry: Moving to Soy?
by Scott Schnelle As an energy consultant for home retrofits, I often have customers and acquaintances ask my opinion regarding green technologies and energy efficient products. Undoubtedly, with the recent surge of the green movement and a shift toward becoming more environmentally sustainable, now is a great time to invest in these types of products. One product that has been getting more and more attention lately is spray foam. The product itself has been around for many years, but it has recently risen in popularity for a couple of reasons. Here, I’ll discuss spray foam briefly...
Ten Solid Clean Energy Companies to Buy on the Cheap: These Almost Made It
In the future, I plan to avoid doing lists of ten stocks. I've found the writing to be somewhat repetitious, and I suspect some readers feel the same way. Look for more threes and fives. That said, there are more than enough solid companies with strong clean energy arms. These companies are my favorite investments right now, both because I think that now is a time to play it very safe in the stock market (I'm also increasing my cash reserve), and because these companies allow me to use Cash Covered Puts. Since I do have several...
Ten Solid, Clean Companies Ready For Stimulus, and Five That Aren’t
by Tom Konrad Last February, I wrote " I expect the Fed-induced reprieve to be fairly short lived, ten solid companies I'd be happy to buy more of if and when the bottom really falls out of the market." When I wrote those words, the Dow Jones Industrial Average was over 12,700. Now, it's around 8,500, and I doubt anyone remembers the "Fed-induced reprieve" I was referring to. The "bottom fell out" in September and October. On October 12, with the DJIA at 8451, I wrote "I don’t know where the market will go from here, but I...
Why Energy Efficiency is a Hard Sell
Two months ago, I was talking to an experienced entrepreneur who was exploring business models to provide geothermal heat pumps to households. At first blush, it seems like a great idea. Geothermal heat pumps often have payback periods of under five years, which translates into internal rates or return in excess of 20% over the 30 year life of the system. With plenty of room for a business to recoup its cost of capital and leave some money on the table for the consumer, it's amazing that there isn't a company in every jurisdiction already active in the market. ...
EERE Launches its Financial Opportunities Web Site
The DOE's Office of Energy Efficiency and Renewable Energy (EERE) has launched a new Web site that lists opportunities for financial assistance. In fiscal year 2004 alone, EERE awarded approximately $506 million in financial assistance. So if your thinking of getting into the Alternative Energy business, or have an idea that only needs some financial backing, you may want to take a look at the EERE Financial Opportunities Web site and here is a listing of the current related solicitations.
Force in Name Only
by Debra Fiakas CFA One of the companies in our novel alternative energy indices is Forcefield Energy, Inc. (FNRG: Nasdaq). For a time it was listed as among alternative chemical products and now is included among waste-to-energy developers, but it could be as easily included in our data base among sellers of LED lighting products. The identify confusion is due in part to Forcefield’s own description, which includes a laundry list of capabilities and technologies. The company lays claim to proprietary products for heat recovery and the conversion of waste heat to useful purpose. Forcefield comes by...
Hannon Armstrong Yeild On Track For 7% in Q4 With More To Come
Tom Konrad CFA After the close on Thursday, November 7th, Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) declared third quarter earnings. Results were in-line with my, and other analysts’ expectations: Earnings per share (EPS) of 14 cents, and a declared dividend of 14 cents as well. This more than doubled the second quarter’s 7 cent EPS and 6 cent dividend. Note: I have a large long position in HASI. HASI remains on track to reach managements’ dividend target of “over 7% of the $12.50 IPO price” (22 cents a quarter,) and provided some additional guidance for future dividends....
GE’s big bet on natural gas
Marc Gunther General Electric Co. (GE) is betting big on natural gas. The $150-billion a year company, whose power plants generate about one-fourth of the world’s electricity, today announced a new natural-gas power plant that it says is more efficient and flexible than any other in the market. By phone from Paris, where the announcement was made, Steve Bolze, president of GE Power & Water, told me: “This is about transforming the industry over the next five or 10 years.” GE says it invested more than $500 million in the new plant development. It will be manufactured in...
Five Green REITs
by Tom Konrad Ph.D., CFA
Why Green Buildings are Profitable Buildings
Buildings are responsible for approximately a third of greenhouse gas emissions, so making buildings more efficient and switching them to renewable sources of energy is an essential part in addressing climate change.
Fortunately, new technologies such as cold climate heat pumps, heat pump water heaters, induction stoves, as well as the ever falling cost of renewable electricity and improvements to insulation and building envelopes often provide opportunities to improve buildings while achieving extremely attractive investment returns from the energy and maintenance savings alone.
Because of the great financial returns, building owners who...
Lime Energy Sells ESCO Business to PowerSecure
Tom Konrad On March first, Lime Energy (NASD:LIME) announced the sale of its Energy Service Contracting (ESCO) business to PowerSecure International, Inc. (NASD:POWR). The deal will provide Lime with approximately $1.9 million in cash, plus the assumption of $9.9 million in liabilities associated with various ongoing projects, offset by $6.3 million in assets transferred to PowerSecure. This makes the effective purchase price of the business approximately $5.5 million (not the $11.9 million I earlier reported). The deal should be good news for both Lime and PowerSecure shareholders. From Lime Energy’s Perspective After nine months of worrying about misreported and potentially fictitious revenue, it’s...
Recycler Priced for Recovery
by Debra Fiakas CFA
Shares of Appliance Recycling Centers of America (ARCI: Nasdaq) has trended downward over the last year, despite some strong fundamental progress in the company’s position the recycling sector. The corporate name tells at least part of the company’s story. Besides recycling appliances such as washers, dryers and refridgerators, ARC also sells new and like-new appliances right out of the box. The company has eighteen stores branded ApplianceSmart across the country. Services to electric utilities and other energy companies related to energy efficiency programs provide yet another revenue source.
In the twelve months ending March 2017, ARC reported...
Dividend-Paying Energy Efficiency Stocks
Tom Konrad CFA Clean energy investing is not on for growth investors, traders, and speculators. Conservative income investors can invest in green companies as well, and dividend paying energy efficiency stocks deserve pride of place in their portfolios. In my clean energy investing workshops, I tell attendees that investing in clean energy stocks does not have to be riskier than investing in any other sector. The key to investing in clean energy with a low risk profile is the same as low risk investing in any other sector: find stable, profitable companies selling at reasonable valuations. ...
U.S. Air Force to Purchase Initial Cyberlux LED Systems
Cyberlux Corp. (CYBL.OB) announced that the Company has completed the contract requirements associated with the advanced solid-state LED security lighting system developed by Cyberlux for the United States Air Force. Based on the demonstration results of the Portable Covert Illumination System, the Air Mobility Battlelab completed the project briefing with A7 Air Mobility Command senior leadership and successfully transitioned the Watchdog System from field trials to procurement. Cyberlux estimates that the USAF demand will exceed $1M initially and the demand from other military branches to exceed $5M for adapted versions of the BrightEye and Watchdog Systems.
Investing in Efficient Homes: Energy Star, Built Green, and Beyond
This article is part of a series on the WGA Energy Efficient Buildings Workshop. Sam Rashkin One highlight of the conference was Sam Raskin's (the National Director a.k.a. "Scary Man" of the US EPA Energy Star program.) I recommend his presentation for graphic infrared images of poorly sealed homes, showing how little the insulation is doing to retain heat or cold if the building envelope is not tight. It will make you think twice about buying a home that hasn't been checked to be tightly sealed. Rashkin believes that the growing affordability of infrared cameras will allow...
