Investing In Wood Pellets, Part II – A Stock

Two weeks ago, I wrote about the emerging wood pellets industry and how this form of biomass was experiencing rapid growth as a coal substitute in power generation, mostly in Europe as a result of renewable energy and climate regulations. In the time since I wrote that article, I have been looking for ways to invest in the global wood pellets sector. Unfortunately, my search came up mostly empty (except for 1 stock discussed below). In response to my previous post, a reader pointed me to an article Joe Romm at Climate Progress had recently written...

My Yieldco Raised Its Dividend With This Weird Trick

Tom Konrad CFA Clean energy yieldcos buck the general trend by paying out a large proportion of cash flow to investors, and rapidly increasing their dividends at the same time.  The key to this trick has been their rapidly appreciating stock prices. High yield companies generally grow slowly, while high growth companies have low dividend yields. Normal companies grow by investing some profits in new business opportunities.  Early stage growth companies typically retain all their earnings to invest in new business.  More mature companies have fewer opportunities, and so share a larger proportion of...

The Safest Alternative Energy Yieldco

By Jeff Siegel If you're a regular reader of these pages, you know I'm bullish on alternative energy yieldcos. In fact, I've covered Pattern Energy Group (NASDAQ:PEGI) and NRG Yield (NYSE:NYLD) at length. The way I see it, yieldcos are the next big alternative energy investments for retail investors. They enable regular investors to buy into multiple alternative energy assets that produce steady cash flow. For those not particularly keen on risk, but still want exposure to the burgeoning alternative energy space, this is a great way to do it. The bottom line is that...

Dividends and Value Among Renewable Energy Power Producers

Tom Konrad CFA Almost every stock market sector fell significantly in late July and August this year, and such market declines send me searching for value stocks paying good dividends which I can hold for the long term.  In mid-July, I found some decent values by sifting through the trash, but I was less enthused by the value proposition of conglomerates involved in the clean energy space.  Today I'll take a look at a group of...
wind farm

List of Wind Farm Owner and Developer Stocks

Wind farm owner and developer stocks are publicly traded companies that site, permit, develop, construct, own, or operate wind farms for producing electricity. This list was last updated on 8/22/2020 Acciona, S.A. (ANA.MC, ACXIF) Adani Green Energy (ADANIGREEN.NSE) Algonquin Power and Utilities (AQN, AQN.TO) Atlantica Yield PLC (AY) Atlantic Power Corporation (AT) Avangrid, Inc. (AGR) Boralex (BLX.TO, BRLXF) Brookfield Renewable Energy Partners (BEP) China Longyuan Power Group Corporation Limited (0916.HK, CLPXF) China Ruifeng Renewable Energy Holdings Limited (0527.HK) Orsted (ORSTED.CO, formerly DENERG.CO) E.ON AG (EONGY) Enel SpA (ENEL.MI, ESOCF) Greencoat UK Wind (UKW.L) Infigen Energy Limited (IFN.AX, IFGNF) Innergex Renewable Energy Inc. (INE.TO, INGXF) Neoen S.A (NEOEN.PA) NextEra Energy Partners, LP (NEP) NextEra Energy, Inc. (NEE) Nordex AG (NRDXF, NDX1.DE) Northland Power Inc....

Abengoa Seeks Insolvency Protection

Jim Lane In New York, NASDAQ shares in Abengoa SA (ABGB) plunged 49% in Wednesday trading after the embattled renewable energy developer said it would seek bankruptcy protection as it seeks to reorganize nearly $9.4 billion in debt. The protective filing was announced after an expected infusion of nearly $300 million from Spanish steelmaker Gonvarri did not materialize. The company’s debt had been previously downgraded to a B3 rating by Moody’s, six rungs on the ladder beneath investment grade. Last week, Moody’s described the company’s cash reserves as “insufficient” and expressed that asset sales and a round of...

FPL Group Beats Estimates By $0.06 and Profits Rise

FPL Group Inc (FPL) reported 2005 fourth quarter net income on a GAAP basis of $206 million, or $0.53 per share, compared with $173 million, or $0.47 per share, in the fourth quarter of 2004. FPL Group's net income for the fourth quarter 2005 included a net unrealized after-tax gain of $27 million associated with the mark-to-market effect of non-qualifying hedges. The results of last year's fourth quarter included a net unrealized after-tax loss of $2 million associated with the mark-to-market effect of non-qualifying hedges. Excluding the mark-to-market effect of non-qualifying hedges, FPL Group's earnings would have been...

CBD Energy and SFC Smart Fuel Cell Look Promising

From Small Fries to Big Shots? (Pt. 2 of 2) Bill Paul Here now are two more small alternative energy companies, both of which look to be just starting to hit their stride. How far they'll go only time will tell, but each seems to warrant a closer look. Take note: like the vast number of other pure-play alternative energy firms with intriguing growth prospects, neither of these is U.S.-based. Rule of thumb: whether you're a big institutional or small individual investor, to succeed in alternative energy, you must scour every corner of the earth. First up: CBD Energy,...

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. ...

Power Plant Costs & The Case For Energy Efficiency

A few weeks ago, I stumbled upon a presentation that was given by FERC officials on the phenomenon of rapidly rising costs in US power generation (presentation link at the end of this post). The FERC, or Federal Energy Regulatory Commission, is America's energy watchdog. The presentation begins by noting that across America's major electricity hubs, power prices are up significantly on last year (between 62% in the Midwest and 123% in NYC) and that, unfortunately, this probably isn't an anomaly. In fact, the presentation argues, there may be something secular at play. Two main trends are noted....

Fifteen Clean Energy Yield Cos: Company Structure

Tom Konrad CFA In the first article of this survey of yield cos, I looked at the possible reasons for the seemingly endless enthusiasm for US-listed clean energy yield cos.  Here, I'll take a look at how these yield cos are constructed, and why investors should prefer one structure over another. Who's Your Daddy? Most yield cos have been created by clean energy project developers in order to create a ready, low-cost buyer for those projects.  With the recent string of very successful IPOs, the capital available for such projects may prove...

Investing In Wood Pellets, Part I

Last week, I mentioned that I had attended a conference focused on opportunities in the biomass and bioenergy sectors. One of the article ideas I got from this conference was on the emerging market for wood pellets (tightly packed sawdust and other wood shavings) for heat and electricity. How interesting that, over the weekend, the magazine Science published an article suggesting that the US should ramp up its use of wood for small-scale heat and electricity production (the article is not available free of charge but you can find a summary here). The Wood (Pellet) Advantage It...

Brilliant Light Power – Commercialization Status

by Daryl Roberts A potentially paradigm-shifting technology has been under development at an R&D firm in NJ called Brilliant Light Power.   For people monitoring the situation, the question currently is about the status of commercialization.   It is not a publicly held firm, but is in mid-stages of private equity capitalization in the range of $100-120M. I recently read a book  titled "Randall Mills and the Search for Hydrino Energy", offering a detailed and compelling history of the development of this novel renewable energy technology, authored by an insider, an intern who stayed on to work there for several years (published in...

Brookfield Renewable Energy Likely To Vote Against Western Wind Management in Proxy Battle

Tom Konrad CFA When it emerged that Brookfield Renewable Energy Partners (“Brookfield”, TSX:BRP.UN, OTC: BRPFF) had acquired approximately one sixth of Western Wind Energy’s (TSXV:WND, OTC:WNDEF) stock last Thursday from Western Wind’s largest institutional shareholder, Goodman & Company, investors cheered. The transaction was seen as a signal that Brookfield intends to bid at least C$2.25 for Western Wind in its upcoming sale, and so the company’s stock has been trading for slightly more than C$2.25 since the announcement. Despite this, the Brookfield/Goodman transaction may not prove to be a good deal for Western Wind’s other shareholders.  Goodman had not...

Valuing the Boralex Power Income Fund Buy-Out

Tom Konrad, CFA Boralex Inc. made an offer to buy out the Boralex Power Income Fund on May 19.  The price is reasonable.  Boralex (BLX.TO, BRLXF.PK) announced on May 2 that it would offer C$5 per share in convertible bonds for all outstanding shares of the Boralex Power Income Fund (BPT-UN.TO, BLXJF.PK) that it did not already own in an acquisition approved by both boards.  As usual with mergers, the Boralex Power Income Fund's ("the Fund's") unit price jumped from C$4.61 to C$4.90 the next day, but then if started to fall back as people had...

Brookfield’s Yieldco Buying Spree

by Tom Konrad Ph.D., CFA Last week, a Bloomberg reported on a rumor that Brookfield Asset Management (BAM) was in talks to buy Abengoa's (ABGOY) stake in its former YieldCo Atlantica Yield (ABY).  Atlantica had been looking for a new sponsor for well over a year since parent Abengoa filed for bankruptcy. Purchasing Yieldcos (companies that own clean energy infrastructure and use the cash flows to pay large dividends to shareholders) is not new to Brookfield.  Not only has BAM long sponsored Brookfield Renewable Partners, LP (BEP), a limited partnership that has essentially been a Yieldco since before the term was...
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