As an investor, keeping “green” on your stock trading screen may mean something completely different down the road. With all the fear of nuclear fusion and concern for safety, this is a good time to talk about clean and sustainable energy sources and how we, as investors, can benefit together with the planet in this growing trend.
What are the types of clean renewable energy?
Solar energy: China is currently the world leader in the renewable energy sector, followed by India, Germany, Spain, the United States and India. India, one of the sunniest countries in the world, has more than 300 sunny days a year and is fast becoming a competitor in the development of solar energy.
Photovoltaics: Photovoltaics (PV) is a method of generating electrical energy by converting solar radiation into direct current electricity through the use of solar panels that contain a photovoltaic material (silicon, telluride, indium copper, among others).
Wind power: According to the World Wind Energy Council (GWEC), wind power capacity grew by 22.5% in 2010, although coal and natural gas remain cheaper in major energy consuming countries. China has overtaken the United States as the world leader in wind energy, including the number of wind turbines installed and manufactured. China benefits from low labor costs, low capital costs, government support, and preferential access to rare earth materials such as neodymium and dysprosium.
Hydroelectricity: China is also the world leader in hydroelectric facilities with the aim of eventually replacing coal with hydroelectricity as the main source of energy.
Geothermal Energy: Geothermal energy is a non-carbon based energy source that is friendly to the environment and does not release harmful greenhouse gases into the atmosphere. Geothermal energy is derived from energy found along the boundaries of tectonic plates where earthquakes and volcanoes are concentrated and is used in three types of energy production, including dry steam plants, power plants, flash steam and binary cycle power plants that transfer heat between liquids to drive turbines.
Wave Energy – Wave energy uses the energy density of ocean waves to create a zero-emission, renewable energy source. More than 100 small businesses around the world are employed to convert energy from the sea into electricity.
Tidal Power – Uses tidal cycles to generate electricity. As early as the Middle Ages, small tide mills were built in Scotland and Europe. The world’s first and most important tidal power plant was built in La Rance, France, in 1996.
How to invest in clean energy companies
Some of the top companies listed in the United States can be found in “Portfolio 21’s Top 10 ‘Green’ Companies for 2011”, published on December 30, 2010. These companies demonstrated the qualities of innovation and leadership, a clear competitive advantage and long-term value potential according to CEO and chief investment officer Leslie Christian.
ABB – Provides technologies that enable a wide range of industries, including utilities, to improve performance and reduce environmental impact. They are also the world’s largest supplier of the electrical heart of wind turbines. ABB’s products are well positioned to meet the global demand for reliable and efficient electricity supply.
Cisco provides networking products and services for home and business communications that minimize travel and associated environmental impacts.
Eaton provides electrical systems and components for power distribution that reduce energy use.
Growthpoint leads the implementation of green building and energy saving practices in South Africa and is an active participant in the development of the country’s first commercial green building standards.
IBM announced a new combined solution for managing energy efficiency in buildings and has achieved impressive reductions in its own greenhouse gas emissions and is part of the Chicago Green Energy Market Development and Climate Exchange Group.
Johnson Matthey creates catalysts that allow chemical reactions to take place under milder conditions, require less energy, and use fewer toxic chemicals and solvents. They are also expected to help produce clean fuels, convert green waste and raw materials into energy, and improve emissions from combustion engines.
Novozymes is the world leader in biotechnology-based industrial enzymes and microorganisms developed to reduce the use of energy, raw materials and harsh chemicals, as well as to reduce waste.
Ormat is a recovered and geothermal energy company dedicated to solar thermal energy and biomass. Ormat has installed approximately 1,300 MW of geothermal power plants and recovered energy generation.
Schneider Electric provides energy control, monitoring and automation solutions for utilities, buildings and other infrastructure uses to reduce consumption.
Tennant Company offers a portfolio of eco-friendly products, including Green Seal certified cleaning agents and their ec-H2O cleaning machine, which only requires water and no added chemicals.
In Canada, the Toronto Stock Exchange provides a list of eco-conscious companies that are engaged in renewable energy production. Here is the list with the stock symbols:
5N Plus Inc. VNP
Algonquin Power & Utilities Corp AQN
Alter NRG Corp. NRG
ARISE Technologies Corporation APV
ATS Automation Tooling Systems Inc. ATA
Azure Dynamics Corporation AZD
Ballard Power Systems Inc. BLD
Bennett Environmental Inc. BEV
BioExx Specialty Proteins Ltd BXI
BioteQ Environmental Technologies Inc. BQE 55.9 BC Y
BIOX Corporation BX
Boralex Inc. BLX
Boralex Power BPT Income Fund
Brookfield BRC Renewable Energy Fund
Brookfield Renewable Power Preferred Equity Inc BRF
Burcon NutraScience Corporation BU
Capital Power Income LP CPA
Carmanah Technologies Corporation CMH
Cascades Inc. CAS
China Wind Power International CNW (my choice)
Day4 Energy Inc. DFE
Dynetek Industries Ltd. DNK
Electrovaya Inc. EFL
Genesis Worldwide Inc. GWI
Gerdau AmeriSteel Corporation * GNA
GLV Inc. GLV
Hemisphere GPS Inc.HEM
Hydrogenics Corporation HYG
Innergex Renewable Energy Inc. INE
ISE ISE limited
Macquarie MPT Energy and Infrastructure Income Fund
Magma Energy Corp. MXY
Marsulex Inc. MLX
New Flyer Industries Inc.NFI
Newalta Corporation NAL
Northland Power NPI Income Fund
Palko Enviornment Ltd PLK
Plutonic Power Corporation PCC
Primary Energy Recycling Corporation PRI
ProSep Inc. PRP
Ram Power Corp RPG
RuggedCom Inc. RCM
SunOpta Inc. SOY
Tembec Inc. TMB (my choice)
Timminco Limited TIM
Turbo Power Systems Inc. TPS
US Geothermal Inc. GTH
WaterFurnace Renewable Energy Inc. WFI (my choice)
Westport Innovations Inc. * WPT
Xebec Adsorption Inc XBC
Zongshen PEM Power Systems Inc.ZPP
