Welcome to the Green Chip Review Weekend Edition — our insights from the week in everything alternative and cleantech, as well as links to our most-read Green Chip Review and sister publication articles.
The battle of cleantech yin and yang raged on this week as multiple billion-dollar announcements continued to remind us of the industry's coming of age.
In Australia, top cleantech operator AGL Energy Ltd. said it's shelving $1 billion in planned wind investments because of "uncertainty in the government's climate change policies."
Then on the same day, the government announced it had in fact overhauled its renewable energy scheme, leading Reuters to report "the changes would unblock multi-million dollar commercial projects planned by companies including AGL Energy Ltd. and Pacific Hydro."
So it looks like the balance of forces is equal in the land down under.
But here in the States, Deere Co. (NYSE: DE) has begun looking at options for its $1 billion wind portfolio (34 farms, 706 MW) under guidance from Goldman Sach's (NYSE: GS). Potential sale was given as one of the "options," but no reason was given for why the company was looking.
In a $1.37 billion announcement of its own, the federal government awarded a loan guarantee to BrightSource Energy to aid development of 400 megawatts worth of solar thermal plants in California. It's the biggest single cleantech funding award by the government to date.
Big save from the Feds, but they choked on the next shot...
The Environmental Protection Agency announced it is softening carbon emission requirements on big industry, offering more exemptions for big polluters and delaying any firm regulation until 2011.
I would submit the agency is yielding to pressure from Congress, industry lobbyists, and the Texas lawsuit, two of which we discussed last weekend.
Luckily, Wal-Mart (NYSE: WMT) was there to step in, declaring in a webcast it will eliminate 20 million metric tons of greenhouse gas from its supply chain by the end of 2015 — the equivalent of taking nearly 4 million cars off the road.
But Congress dropped the ball once more, as a survey of 12 key swing vote senators from both parties showed passage of a climate/energy bill this year is all but impossible.
Only one thing could save evil from reigning: Bloom Energy, which emerged from stealth mode this week with a 60 Minutes feature on their fuel cell.
Away from our shores, the battle remained one-sided, with perhaps even a bit of emerging romanticism between Europe and Asia.
Britain and Japan were sitting in a tree after Mitsubishi agreed to invest over $150 million in UK turbine development facility. The move furthers the Isle's ambitions of becoming an offshore wind energy mecca.
The country remained in the limelight when research firm Verdantix reported "large British businesses will spend over $5.3 billion on climate change initiatives in 2010." And that "will grow by 14 percent a year to reach $8.4 billion in 2013."
Not to be outdone, the British government announced a new Plug-in Car Grant. Capped at nearly $8,000, the grant will cover a quarter of the cost of electric cars for private and fleet buyers.
And finally...
The German government made public its new feed-in tariff (FiT) cuts. Rooftops and "brownfield" installations get a 16% cut after July 1. Farmland installations are no longer available.
Green Chip has covered this topic well, as subsidy reduction is a sure sign of an industry's maturity. And we've also correctly forecast the outcome: A rush on eligible installs would occur, fed by a rush of imported panels from China.
This is exactly what is (and has been) happening. And new financial reports are showing the result, which Green Chip investors have been capitalizing on...
Chinese companies are killing their quarterly reports. Trina (NYSE: TSL) just reported a $49.2 million quarterly profit, worth $0.74 per share. Estimates were only $0.60 per share.
And more companies are reporting soon, leading Deutsche Bank to practically upgrade the entire sector, saying it expects "Chinese solar firms to be the major beneficiaries of a growth in global demand for photovoltaic modules in 2010."
The success is coming at the peril of European based firms though. SolarWorld (XETRA: SWV), Germany's largest solar company, says it won't meet sales estimates for 2020; Q-Cells (XETRA: QCE) won't give an outlook for the year; and Renewable Energy Corp. (OSLO: REC) says the first two quarters would be "challenging."
We'll continue to help you navigate, starting with a summary of this week's coverage below...
Call it like you see it,
Nick
The Monster Metal: The Most Profitable Nuclear Advancement in 50 Years
Short of nuclear fusion (which is still decades away), this discovery could prove to be the greatest advancement to the world's energy crisis in 50 years! Green Chip reveals the company with the worldwide monopoly on this monster metal — and why you should buy this stock while it's still selling for less than 20 cents.
SEC Mandates Disclosure of Climate Risk: The SEC's Energy Game-Changer
Energy & Capital Editor Nick Hodge takes a look at a recent SEC ruling and divulges how it will impact energy investors.
The Golden State's Latest Wind News: The Recent Law that Will Propel Wind to Profit
Green Chip reports: On January 1, 2010, a new California state law went into effect. And now, 20% of all power generated by California utilities must be generated from renewable sources. This single wind energy stock could deliver gains of more than 112% in the next 4 months!
Arizona Anti-Solar Bill Defeated: Bureaucrats Backpedal on Solar-Killing Bill
Green Chip Publisher Jeff Siegel explains why bureaucrats have been forced to kill a bill that would've gutted the state's solar industry.
Change Coming to German Solar Industry: The World's Solar Panel Leader is Transforming
Editor Sam Hopkins separates fact from fiction in the plan to cut Germany's feed-in tariff (FIT) this summer.
Arizona Solar Bill: Bureaucrats Bully Arizona Solar
Green Chip's Jeff Siegel calls out bully bureaucrats that seek to sink solar momentum in Arizona.
Bloom Energy IPO?: Bloom Energy Featured on 60 Min
Editor Nick Hodge dispels rumors of a Bloom Energy IPO after the company was featured on 60 Minutes.
Debating Climate Change: Debating Climate Change Won't Make You Rich
Green Chip's Jeff Siegel explains why debating climate change won't make rich, but reveals some opportune places to look that could.
The Verdict on the Bloom Box and the 60 Min Coup: Is the Bloom Box Energy's Holy Grail?
Green Chip Editor Chris Nelder takes a critical look at the new Bloom Box fuel cell system, and concludes that it's a modest improvement over standard natural gas-fired power...
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