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The Continuing Tale of Cleantech's Maturation

Green Chip's Weekend Edition

By Nick Hodge
Saturday, February 13th, 2010

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.  


Last week, we covered the emergence of China as a cleantech stalwart during a time in which the U.S. has shown scant progress.

The theme isn't much different this week, though there is more positive news to report on a global basis...

For starters, maturation of the cleantech market was evident this week by the number of mergers and acquisitions taking place, and the number of new initiatives announced by blue chip companies.

SunPower (NASDAQ: SPWRA) announced they're buying European solar integrator SunRay in a $277 million deal.

The world's largest nuclear plant builder, Areva, is buying the much-hyped solar startup Ausra for an undisclosed amount. But you can bet it was a hefty sum, as venture capitalists alone had more than $130 million tied up in the company.

And there were other announcements showing cleantech's maturation...

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Wal-Mart (NYSE: WMT) is building a green distribution center in Vancouver. The refrigerated warehouse will be 60% more efficient than current centers, thanks largely to improved forklifts, light emitting diodes (LEDs), and solar panels.

United Technologies (NYSE: UTX) said they're on the verge of making "bigger bets" in the space, including a possible takeover of turbine maker Clipper Windpower (LSE: CWP).

And while litigation is rarely a good thing, GE's decision to sue Mitsubishi over wind turbine patent infringement shows just how big the financial implications of cleantech have become.

But despite the positive announcements, all cleantech roads are still leading to China.

Solar companies based there came out swinging as earnings season got underway. JA Solar (NASDAQ: JASO) and Renesola (NYSE: SOL) each beat estimates, sending shares higher.

Europe is scaling back its feed-in tariffs (FITs) — which is also a sign of market maturation — and solar integrators are rushing to buy discounted Chinese modules before the subsidy cuts take place later this year.

The rest of the group will be reporting over the next few weeks, and good results are expected across the board.

And Datang Corp., China's second-largest power producer, said this week that it plans to float shares of its renewable energy unit in a $1 billion Hong Kong initial public offering (IPO).

If that weren't enough, we learned this week that China has finished design work on three Westinghouse nuclear plants. Construction will begin this year on all three plants.

Westinghouse, a unit of Japan's Toshiba, already has four reactors under construction in the Middle Kingdom. Areva (the company that bought Ausra) is building two.

Nuclear growth in China — and elsewhere — is the reason Green Chip began covering the space this year.

We'll continue covering that story — and all other green business trends — as it develops.

You can catch up on the rest of this week's Green Chip coverage below...

Call it like you see it,

Nick Hodge

Nick

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Investing in Green Chip Stocks: 5 Green Chip Stocks to Buy While They're Cheap
Editor Jeff Siegel reviews 5 Green Chip Stocks to buy while they're still cheap.

The Monster Metal: The Most Profitable Nuclear Advancement in 50 Years
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Maryland Offshore Wind Power: New Study Says 12,000 Turbines Could Go Offshore
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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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