Turning Potato Peels To Power
by Debra Fiakas CFA The series on waste-to-energy continues with Blue Sphere, Inc. (BLSP: OTC/QB), a relatively new entrant to the biogas power generation market. Blue Sphere is focused on converting principally food waste to power using anaerobic digestion technology. In May 2014, Blue Sphere started construction on a bio-digester and power generation facility near Charlotte, North Carolina, that will turn potato peelings and apple cores into 5.2 megawatts of power. Duke Energy (DUK: NYSE) has been lined up to buy the power when the plant goes operational sometime before the end of 2015. Management expects to...
Casella Back In The Dumps, But Ready To Pick Up?
by Debra Fiakas CFA Casella Plants Flag in Waste-to-Energy The solid waste collection and disposal industry has been transformed by the building enthusiasm for waste recycling. Founded in 1975, Casella Waste Systems (CWST: Nasdaq) has been around to experience a lot of change and has been quick to get on the bandwagon. The company is a self-described recycler and resource manager as well as a solid waste collector. Granted the company is still heavily focused on its conventional solid waste business. Casella management has outlined a four-point plan to grow the company and increase profits. Top on...
Another Look at the Algonquin Power Income Fund
Tom Konrad, Ph.D., CFA The Algonquin Power Income Fund (AGQNF.PK) has been one of my star performers in an excellent year. Is it still a good investment at these prices? Since I recommended the Algonquin Power Income Fund (AGQNF.PK/APF-UN.TO) in January as a renewable energy income stock for 2009, the company is up 69%, in addition to the C$0.02 monthly dividend, worth approximately another 8% through August on the US$1.82 purchase price, making it the second-best performing of my ten picks (after Cree, Inc (CREE).) However, since the major basis for my recommendation at the time was the...
Fulcrum Bioenergy’s $115M IPO: The 10-Minute Version
Jim Lane The first zero-cost feedstock biofuels company comes to the public markets with its IPO. Like to see how this “Back the the Futuresque” technology unlocks value by converting household garbage into transportation fuel? Here’s our 10-minute version of the IPO from Fulcrum Bioenergy. In California, Fulcrum Bioenergy has filed an S-1 registration statement for a proposed $115 million initial public offering. The number of shares to be offered and the price range for the offering have not yet been determined. The company proposes to list under the symbol FLCM. UBS Investment Bank...
RDX: Waste Water-to-Energy
by Debra Fiakas CFA Last week RDX Technologies, Inc. (RGDEF: OTCQX or RDX: TSXV) announced an agreement to supply renewable diesel to the Tyson Farms’ Temperanceville Facility in Virginia. The Energy Division of RDX sells three grades of methyl ester fuels that can be used in boilers and small generators. RDX did not disclose the value or size of the Tyson Farms contract. However, the contract apparently is for one year with a second year option. RDX operates renewable fuel plants in Missouri and California. Waste streams are aggregated at the two plants by truck and processed...
Covanta and Hannon Armstrong Earnings
by Tom Konrad, Ph.D. CFA
Two more earnings notes I shared with my Patreon followers on February 18th.
Covanta Holdings (CVA)
Leading waste-to-energy firm Covanta Holdings (CVA) announced 2020 earnings today. There will be a conference call tomorrow morning, but here is my high-level impression:
The company managed well through Covid and ended the year within it's original pre-covid guidance. Metals and energy prices, as well as increased maintenance capital expenditures were a drag on results, but prices are improving and capital expenditures will fall in 2021.
The company is conducting a strategic review which will likely result in the sale of some underperforming...
Battling Food Waste: Blue Sphere
If ‘food waste’ was a country it would be ranked as the third largest emitter of greenhouse gas emissions in the world behind only China and the United States. To reach this conclusion the World Resources Institute used food waste data in 2011, and considered agriculture inputs, food processing, land use, deforestation, food waste disposal, and landfill impacts.
The carbon footprint of wasted food is a big one with cereals contributing about 35% of the greenhouse gas emissions even though is only about 19% of food waste volume. Meat on the other hand is a small part of the food waste problem as it...
Blue Sphere To Start Biogas Commercial Operations
by Debra Fiakas CFA The Blue Sphere, Inc. (BLSP: OTC/QB), stock price has weakened in recent months as investors registered their apparent frustration with fundamental developments. Proposed acquisitions of operating biogas power plants in Italy have taken much longer than expected and majority interest in planned biogas plants in the U.S. were sold into joint venture arrangements rather than held as 100% equity positions. Despite these developments, Blue Sphere management has doggedly moved forward on all fronts and there has been measurable progress toward first revenue. Commercial operation dates have been set for...
Covanta on a Mission to Up-cycle Municipal Waste
Debra Fiakas, CFA The Waste Hierarchy, with energy from waste highlighted Covanta Energy (CVA: NYSE) is a champion of renewable energy. So much so that Covanta commissioned an elaborate sustainability report in 2010, detailing the company’s three-year track record in elevating municipal waste from the landfill to a higher order of use. Compliant with standards set by the Global Reporting Initiative, the report is full of choice tidbits from Covanta’s municipal waste experience - at least through the year 2009. Let’s look at 2009, the last...
Covanta: Comfort In An Ample Dividend
by Debra Fiakas CFA In late August 2015, volatility turned its frightening countenance on the U.S. equity market. The volatility measure for the S&P 500 Index (VIX) spiked to a peak of 53.29 during trading on August 24th. While things have calmed down since, volatility remains well above the 20.00 level where many investors consider it too precarious to take new equity positions. At time like these it makes sense to seek the warm comfort of an ample dividend. Those regular cash rewards can make it worthwhile waiting for stock prices to calm down. Within...
Ten Solid Clean Energy Companies to Buy on the Cheap: #3 Waste Management, Inc....
In large part, the transition to clean energy will involve using our resources much more efficiently than we do now. One large potential feedstock for biofuels (and arguably the only one which is truly sustainable) is our trash. As the world economy grows, and the available stock of natural resources diminishes, society will have no choice but to use what we have more efficiently and throw less of it away. In addition to the now familiar recycling of Aluminum, glass, cardboard, paper, and plastic, yard and construction waste will find its way to cellulosic ethanol plants, and used cooking...
$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...
MagneGas’ Industrial Plasma
by Debra Fiakas CFA Alternative chemicals developer MagneGas Corporation (MNGA: Nasdaq) is posting another guard at the gate. The company recently filed a patent application to protect new enhancements of its plasma arc technology and gasification system. Plasma is any gas taken to a whole new phase through extremely high temperatures. For perspective the sun is actually a very large ball of plasma. Here on Earth MagneGas is using its proprietary system to gasify carbon-rich liquids such as municipal wastewater to produce hydrogen gas for industrial applications and vehicle fuel. Many investors have probably heard about...
Waste Management: Biogas with a Dividend
by Debra Fiakas CFA The biogas industry has attracted a number of new entrants. Blue Sphere (BLSP: OTCQB) described in the recent post “Turning Potato Peels to Power” and RDX Technologies (RDX: TO, described here) are both newcomers to the biogas power generation. Both companies show much promise and will likely grow dramatically over the next few years. Shareholders are counting on the stock prices to follow. Investors who are less interested in the big growth play and more interested in stability and current income are not left out. There are larger, more...
Plasma Arcs For Pig Waste
This week MagneGas (MNGA: NASDAQ) announced new work completed toward plans to enter the commercial pork sector with a proprietary manure processing and disposal solution. Management held a meeting with the North Carolina Department of Environmental Quality and the U.S. Army Corps of Engineers to discuss MagneGas technology to treat agriculture waste and the state’s required environmental permit protocols. MagneGas aims to sell to pig farmers equipment based on its innovations.
The company wants to help pig farmers address environmental problems cause by manure accumulation with its proprietary waste sterilization process. Handling pig waste using conventional methods can be costly, but failure to...
Covanta Accelerating Zero-Waste-to-Landfill
Last week Covanta (CVA: NYSE) opened a new materials processing facility in Indianapolis, increasing waste handling capacity by 500%. The waste handler has been in operation in the community for three decades, collecting and processing over 2,100 tons of solid waste every day to steam energy in a waste-to-energy incinerator. Citizen Thermal Energy buys the steam to heat the buildings of its commercial customers.
The new materials processing facility increases Covanta’s waste handling capacity. The company is targeting manufacturers in the Indianapolis area that are still sending wastes to landfills. Covanta wants to collect more waste as well as attract waste types unique to manufacturers that need...
