Big names don't mean big gains!

Renewable energy tecnology

Written by Brian Hicks
Posted November 30, 2005

Dear Wealth Daily Reader,

Over the last few months, Green Chip investors have watched shares of many of their renewable energy plays go through the roof.

But not all renewable energy stocks are going gangbusters.

I regularly get e-mails from investors wanting to know which renewable energy plays they should bank on. And my answer is always the same…

Big names don't always mean big gains!

In fact, some of the more successful renewable energy companies that are publicly-traded today, at one time anyway, were nothing more than very small R&D firms pushing 'next generation' technology.

There are a couple of these companies that have since gone IPO - and are now performing quite well in our portfolio.

Nonetheless, while I'm constantly analyzing publicly-traded companies within 'green markets' today (i.e. - renewable energies, green building, etc.), I'm also seeking out the types of technologies that will lead to the profits we'll be making tomorrow.

And that's what I'm going to share with you today...

Next-Generation Renewables

Renewable energy technology has been the subject of many Green Chip Reviews. And as long as we keep making money here - this trend will continue.

Of course, nowadays it seems like all the trend chasers are tripping over each other just to grab a few shares of anything with the word 'solar' attached to it. Which is fine. They're just adding to the gains we've been making all year.

But you can't rely on that forever.

That's why, while we continue to take profits in the established, and not-so-established renewable markets…we're also focusing on next-generation renewables that have already proven effective - and are now just building up the momentum they need to put even more renewable profits in our pockets.

Nature breeds technology

While a number of forward-thinking renewable energy firms have made great strides in photovoltaic, geothermal , wind and hybrid technology - especially in the last ten years, there's one engineer/designer that's actually perfected the most technologically-advanced renewable energy technology ever.

And hardly anyone outside an R&D lab knows about it!

How is this possible?

Because sometimes we get so caught up in looking for the next big technological marvel, we neglect to notice it when it's right in front of our faces.

As Daniel Boorstin once said, "The fog of information can drive out knowledge."

And nothing could be truer!

The energy crisis we're experiencing now is leading many scientists to some of the most cutting-edge energy technology ever conceived by man.

But man's progress can never come close to nature's progress.

Some manufacturers have spent 25, 30 even 50 years developing modern renewable energy technology.

Nature's spent the last 3.8 million years perfecting it!

Mimic This!

Biomimicry, a science that studies nature's models and then imitates or takes inspiration from these designs and processes to solve human problems, is quickly setting the standard for many of tomorrow's technological breakthroughs.


For example…

Nowadays you hear a lot about hydrogen-based energy technologies.

But while hydrogen can be highly efficient and low polluting - the stuff doesn't exist by itself. And producing it can't be done without utilizing other energy sources.

In fact, much of today's hydrogen is made using natural gas. And we all know how much that's going for. Just look at your heating bill!

Nonetheless, hydrogen is still quite promising as a clean energy source. And abandoning the use of hydrogen because the technology has yet to be perfected by man will only further solidify our dependence on foreign oil.

Fortunately, there is a solution. And any competent high-school science teacher could explain it. More or less.

You see, researchers at the Imperial College London have identified a possible way to efficiently and inexpensively manufacture hydrogen through a process that converts atmospheric carbon dioxide into organic matter and oxygen (O2) by using sunlight to split water (H2O).

Sound familiar?

Of course it does. It's photosynthesis!!!

You probably learned all about it in high school.

What we've been trying to figure out for decades, nature figured out millions of years ago!

In 2003, using X-ray crystallography, researchers described for the first time the mechanism that supports the photosynthetic water-splitting reaction. And now researchers believe that by analyzing these findings it may be possible to recreate the process on an industrial scale - allowing hydrogen to be manufactured as a fuel.

And with 326 million cubic miles of water on the planet - the market for this technology is massive.

Of course this is just one example of how researchers are turning to nature for guidance.

The nature of industrial solutions

One company that's certainly embraced nature's contributions to modern-day technology is PAX Scientific.

Translating nature's flow efficiencies into streamlined design geometrics, PAX Scientific employs these geometries to improve the performance, output and energy usage of a wide range of industrial and domestic equipment. These include:
Domestic, commercial and industrial fans
Automotive and computer cooling systems
Equipment for water treatment and desalination
Industrial mixers and aerators
Biomedical applications
Pumps, turbines and marine propellers
Hull and fuselage design
Equipment and structures requiring drag and friction reduction
The impact this 'nature-based' technology will soon have in industrial markets is mind-blowing.

We're talking about processes that significantly reduce energy dependence, increase operating efficiencies and drastically cut operating costs.

It's this kind of technology...and more important, this kind of company, that savvy energy investors are monitoring now.

While PAX Scientific is not publicly-traded, don't be surprised to see some of the bigger, publicly-traded energy, construction and automobile companies flocking to this kind of technology in the next few years.

Just as I was discussing 'next-generation' solar cells years ago - before companies like BP and Sharp launched their own solar divisions…I'm discussing biomimicry today. Because innovations in biomimicry represent the next logical evolution of renewable energy technology.

Until next time...


Jeff Siegel
Editor, Green Chip Stocks