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Energy Efficiency Companies

Profiting from "The Fifth Fuel"

By Nick Hodge
Tuesday, January 19th, 2010

No energy play is currently hotter than energy efficiency, in all its forms. Think about it...

For several years running now, the hottest cars at the Detroit Auto Show — and most auto shows, for that matter — have been cars that use less gas: the Tesla, Volt, new versions of the Prius, etc.

And this year was no exception. In fact, the show added an all-electric wing called Electric Avenue that hosted popular attractions like the Nissan Leaf, Volvo C30, and the Ford Fusion Hybrid, which won Car of the Year.

There wasn't a Hummer to be found. Ironically, GM is halting production of all Hummers this week as the brand continues its stay in auto purgatory.

Efficiency is all the rage in home appliances, too. I just bought a new Energy Star dishwasher made by Maytag, thanks to a $300 million rebate program made possible through the stimulus — the equivalent of Cash for Clunkers for water heaters, air conditioners, clothes washers, and more.

Surely you haven't heard anyone asking for appliances that use more energy or cars that use more gas...

And the reason for that is simple: using more energy costs more money.

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The Fifth Fuel

It's not as sexy as erecting a massive wind farm or commissioning a new nuclear reactor — and it certainly offers far fewer photo ops — but businesses and decision-makers the world over are quickly starting to realize the power of energy efficiency.

Wal-Mart is adding billions to its bottom line by making its stores and supply chain more efficient. Boeing has outdone Airbus with its 20% more efficient Dreamliner. Forbes recently reported that "BP made over $2 billion substituting efficiency for fuel; DuPont and Dow Chemical, $3 billion apiece."

That's what's so exciting about energy efficiency... A small investment on the front-end leads to huge savings on the back-end. And it applies to every business...

Retail chains can save money by retrofitting stores with energy efficient lights and HVAC systems. Grocers can improve the electricity use of their massive coolers and freezers. Companies producing goods can optimize their factories and distribution chains.

It's like a brand-new, earth-shattering discovery has been made. Only it's not a new product — it's a concept. The idea is to do more with the energy we already have access to. And the net savings have been dubbed "The Fifth Fuel."

And there are two best parts here...

First, there are incentives available for many of these upgrades. I already mentioned the $300 million available to upgrade your appliances. The Cash for Clunkers budget came in at $3 billion. And just this month, the Department of Energy announced $187 million to improve efficiency for heavy-duty trucks and passenger vehicles, $47 million to improve efficiency in the information technology and communication sectors, and $37 million for next generation lighting.

Second, there's more than a handful of publicly-traded companies on the receiving end of not only billions of gov't cheese, but also billions in sales from the private sector as the financial benefits of efficiency are realized.

They Spend, You Profit

As these billions are spent on energy efficiency upgrades, a few companies (and their shareholders) are making a lot of money.

For example, Ford, Cummins, GE, IBM, BAE, HP, Yahoo!, and many others have all been declared recipients of energy efficiency dollars from the federal government.

And look how companies that provide energy efficiency solutions have been performing:

Energy Efficiency Stocks

Veeco Instruments (NASDAQ: VECO), a smart lighting company — and the best performing stock in the chart above — has gone from about $3.00 to over $32.00... since March.

Many companies have made runs like that. And more are about to.

I actually have my eye on one company — currently trading for less than $1.00 — that's about to make a similar run.

They make a device called a "Negawatt Box" that can drastically reduce energy consumption in both residential and commercial buildings. And a tax credit is being offered to all who install it.

Our electrician recently installed one at our Baltimore headquarters... and we quickly realized 44% savings on our utility bill.

The device is so unique — and the investment opportunity so large — that I've compiled a full report about the company.

It describes not only how to take advantage of the product for yourself, but also how you can profit by owning shares of the company that makes it.

Call it like you see it,

Nick Hodge

Nick


Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!

There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.







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Comments:

Comment by Karin Maeys on 2010-01-20
Reguarding this article: Just because you buy something more energy efficient it does not mean you really save any money. When I built my home 3 years ago we looked at installing Geothermal. To make up the cost difference of what we would save a month in electricity costs would take us 30 years. That makes no sense besides we may not live here that long. The same to be saids for my paid 1999 Yukon. It gets 17 mpg if I get something that gets twice as much I am still paying for higher insurance & a car payment so I save $200 a month in gas but spend an extra $350-$400 a month for this new vehicle. Not to mention I do not like small cars after being in 2 terrible accidents not my fault & working as a body shop estimator. NO small cars for me. Even if all big cars were gone 18 wheelers will crush a smart car beyond recognition. NO Thanks. SO to spend money to save money really does not pan out as well when you figure out the math.

Sincerely,
Karin Maeys
Comment by Douglas John Bignell on 2010-01-22
Massive diseconomies of scale rule out 'alternative energy'. Carbon taxes will destroy efficient energy prodction. Th evidence for the slid theory underpinning this claim is rolling in waves from the world.


The fact is, so called investments in 'alternative energy' and financial instrument s to supply them such as ETS are collapsing for the reason alternative energy is not economic, and ETS is not a free makrket instrument. I's an 'areoplane' scheme that began collapsing months ago. ETS is a carbon tax aimed at destroying efficient energy p[roduction .

As for Obama's spending spree. Certainly a lucky few gget wealthy while everyone else is impoverished, millions impoverished.

Now you have hit one nail on the head:
ETS, alternative enerfgy schemes and OPbamas spemnding spree is tied together.


As Machlup said of Austria, it was wonderful then Austria collapsed.

I don't question your integirty as such, i question the integrity of what you are pushing.

Are you willing to publish an independent assessment by those who do know what they are talking about?
I don't mean Green cultists. I don't mean Obamaties. Why don't you, for instance, contact the editor of brookesnews.

I have to say, having been an entrepreneur, my job was to serve customers by employing all factors of production to devilver goods at prices that served them.
By that, I served investors. On your advice, I should have done exactly the opposite and, frankly, it would never have occurred to me.

You owe those you convince to unload what savings they have into your firm an explanatin. by the way, I write my own news magazine. i am interested in your reply. If you do not reply, addressing the contentions I have stated, I will presume you admit the the contentions. I shall write accordingly.

Your firm is trivial, but it is not in another sense. Americans and Australians are in great peril becuase of the very measures you promote as good. Do you realise what is wrong with this?

Let me point it out:

Those not scientists, ut charlatans inBritain, East Anglia, are facing criminal charges, and they will be brought to trial, for fraud, lying and many other major charges.
They drove the lie co2 emissions causes climate change.

The otherside, Keynesian snake oil includes the consumption fallacy.

This reduces to, telling your customers they can gewt rich out of fraud and snakeopil! Is this what a firm that genuinely serves customers wishes to be known for? Is it what you are doing?
For, on the hard evidence of your material, it can be mistaken that it is what you are doing.
I am willing to be corrected. But, the correction has to be sound. For, I am writing an article for my many readers. I will use you 'firm' as an illustrative instance.

I submit this to you, for I may be mistaken. If, however, I am not. I write.