World Energy Solutions (XWES) and Ram Power (RPG.TO) Appear Promising
From Small Fries to Big Shots? Part 1 of 2 by Bill Paul Feel like rolling the dice on some small alternative energy stocks that appear to have big-time potential? Just remember: sometimes you roll snake eyes. First up: World Energy Solutions Inc. (Symbol: XWES), which currently trades on NASDAQ for $3 and change per share. Worcester, MA-based World Energy Solutions operates online exchanges for energy and green commodities, including the one administered by Regional Greenhouse Gas Initiative Inc. (RGGI), the regulatory scheme under which 10 Northeastern and Middle Atlantic states "cap" their power plants' emissions by requiring...
Clean Energy Stocks Shopping List: Landfill Gas and Geothermal
Stocks seem expensive now, but that may not last. Here are two Landfill Gas stocks and three Geothermal stocks I'm hoping to buy if the market falters. Tom Konrad, Ph.D., CFA This article continues my Clean Energy Stocks Shopping List series. So far I've brought you: Five clean transport stocks, I looked at why it makes sense to wait for better prices, Five Energy Efficiency stocks (always my favorite sector), and Five Electric Transmission Stocks. This article takes a look at two of the most economical clean electricity generation technologies, landfill gas and geothermal. Kilowatts from...
Money Is Flowing Into Alt Energy Again, But We Are Not Out Of The...
Charles MorandIt seems as though the darkest clouds are finally dissipating over alt energy's financing horizon. Over the past few weeks, money has started flowing into the sector again, as evidenced by a number of recent deal announcements: On June 9, I reported on the upcoming IPO for Magma Energy Corp., a geothermal exploration company. The IPO's size will be upped from an initial C$50 MM to C$100 MM, a sign of increased market appetite SunPower Corp. raised $418 MM in early May through a share and debt offering, and recently announced it had reached a $100...
New York to rely more on renewable power
New York will dramatically boost its reliance on renewable energy sources like wind and water over the next nine years under a policy approved by state regulators Wednesday. Clean energy advocates and state officials said the action by the state Public Service Commission places New York among the leaders nationwide in the development of renewable energy. It comes 20 months after Gov. George Pataki first called for a statewide standard that would encourage the production of environmentally friendly energy.
US Geothermal Begins Construction of Idaho Geothermal Power Plant with the help Of Ormat
US Geothermal Inc. (UGTH) has initiated a contract with Ormat Technologies (ORA) to begin building a binary cycle geothermal power plant that is designed to deliver 10 MW monthly average electrical power to Idaho Power Company under a 20-year term power purchase agreement.
Is Ormat Technologies Misunderstood?
by Debra Fiakas CFA Olkaria III Geothermal Power Plant, Kenya Shares of geothermal power developer and utility Ormat Technologies (ORA: NYSE) are trading at 24.7 times the consensus estimate for 2013. That seems pricey on the surface, but the stock is down from a 52-week high of $22.24. The stock gaps up and down with regularity, suggesting ORA is a battle ground for bulls and bears. The fact that the 50-day moving average price continues to descend toward the longer-term 200-day average, hints that maybe the bears are...
$3 Billion For Cleantech & Alt Energy
Charles Morand The DOE made public earlier today the amount of money that will awarded to clean power projects in lieu of the usual tax breaks: $3 billion. This will allow project proponents to receive a direct cash grant now instead of a Production Tax Credit or an Investment Tax Credit later on. The guidance document notes the following: "Section 1603 of the Act’s tax title, the American Recovery and Reinvestment Tax Act, appropriates funds for payments to persons who place in service specified energy property during 2009 or 2010 or after 2010 if construction began...
Pumpernickel Valley Geothermal Project: Inovision to Spend $5,000,000 to Earn 50% Joint Venture Interest
Nevada Geothermal Power Inc. (NGLPF) announced that Inovision Solutions Inc. (ISI), a TSX-V listed company, will fund up to C$5,000,000 in exploration and development expenditures for the Pumpernickel Geothermal Project under an option agreement to earn a 50% joint venture interest. In order to earn its interest, ISI must complete C$5,000,000 in project expenditures, make C$120,000 in cash payments and issue 600,000 shares to NGP over a five year period. In the first year, ISI must fund a C$400,000 work program, issue 100,000 shares and make a C$10,000 cash payment to maintain its option. NGP will be project...
FPL Group in Talks to Buy Constellation Energy Group
FPL Group Inc (FPL) is currently in the advanced stages of negotiations to acquire Constellation Energy Group (CEG). An FPL-Constellation merger would create a giant East Coast-based utility with a market capitalization, based on Tuesday's closing stock prices, of $26.97 billion - $16.93 billion for FPL and $10.04 billion for Constellation. Constellation Energy Group is based out of Baltimore Maryland and is the holding company for Baltimore Gas and Electric. They also have an extensive presence in the wholesale power supply and generation business. The Power Generation Division currently uses 4.6% alternative sources for power generation. ...
Report: Solar and Geothermal Projects Have Over 10% Returns, But Finance Remains Difficult
Ryan Hubbell Despite healthy expected returns, finance-related challenges remain the largest barriers to renewable energy development, according to NREL's Renewable Energy Finance Tracking Initiative (REFTI). Two recently released reports on solar and geothermal technologies show greater than 10% expected returns for both developers and tax equity investors. Yet roughly half of both geothermal and solar respondents (350 in total) reported financial issues (project economics, PPAs, creditworthiness, and raising capital) as the largest barriers to development. In light of this, only 11%-13% of respondents reported abandoning their projects. Figure 1. Expected returns...
Ram Power Negotiates for Higher Revenue
Tom Konrad CFA Geothermal well photo via Bigstock Ram Power (OTC:RAMPF, TSX:RPG) recently provided an update on progress at its flagship San Jacinto project in Nicaragua. This was the project where cost overruns and construction delays last year sent the stock plummeting from over C$2 a share to around C$0.50 a share at the start of the year. The decline has continued, despite the fact that the project seems back on track with the hiring of a new subcontractor, and the stock now trades...
Geothermal Stocks Overview
Tom Konrad CFA Geothermal power generation has several advantages over higher profile alternative energy such as wind and solar, but gets much less attention. Part of the lack of recognition for Geothermal power arises from a confusion with the technology variously called Geoexchange, Ground Source Heat Pump, or Geothermal Heat Pumps. Geoexchange uses the near constant temperature of the soil a few feet to a few hundred feet below the ground to heat and cool a building. According to the Environmental Protection Agency, Geoexchange is the most efficient way to heat and cool a building, and...
Holiday Shopping Deal On Ram Power Shares
Tom Konrad CFA Holders of Ram Power Corp. (TSX:RPG, OTC:RAMPF) on November 26 (the “record date”) will be receiving valuable coupons as the result of the company’s rights offering, announced November 18th. Just in time for the holidays, these coupons, or “rights” can be used to buy additional shares of Ram Power for 8¢ Canadian per share any time before 5pm on December 23rd. (Disclosure: I am long Ram Power stock.) Holiday shoppers looking for more traditional gifts will be able to raise a little cash by selling the rights on the Toronto Stock Exchange,...
Last-Minute PTC Revision Sparks New Hope for Geothermal Stocks
Meg Cichon Geothermal well photo via Bigstock The renewable energy industry had quite a bit to celebrate this week as 2013 rang in a PTC extension that many had feared would never come to fruition. Though the extension to January 1, 2014 greatly benefits the wind industry, whose PTC was set to expire at the end of 2012, it also included a provision that could be huge for geothermal development. This provision states that projects under construction by January 1, 2014 would quality for the PTC, rather...
Blindsided with Advance Warning
Holders of Ormat Technologies (ORA: NYSE) shares may feel somewhat blindsided by the cessation of operations at the Puna geothermal power plant on the Hawaii Island. Lava flowing from neighboring Kilauea volcano has overrun two of the geothermal wells as well as a warehouse and an electricity substation.
Shareholders cannot claim they were not forewarned. Ormat’s annual report for 2017 mentions the risk of volcanic eruptions seventeen times. However, since no geothermal power company has ever experienced an interruption in operations due to a volcanic eruption, investors most likely overlooked the real dangers of locating a business on top of geological ‘hot spot.’
https://upload.wikimedia.org/wikipedia/commons/3/3a/Hawaii_Mount_Kilauea%27s_eruption_opens_new_lava_vent.webm
Ormat is not the...
Newsweek Special Report
"Experts generally agree that our current reliance on fossil fuels is unsustainable. Already oil is near $50 per barrel, and the great millions of Chinese and Indians destined to take to the road in the next decades have not yet gotten behind the wheel." This week Newsweek has written several special reports about alternative energy in all its forms. All of these reports can be found at the following link.