Jeff Siegel

7/2/13: LDK Sells Shares

LDK Solar (NYSE:LDK) is down in pre-market this morning after announcing the sale of 25 million newly issued shares to Fulai Investments Limited for $1.03 per share with an aggregate purchase price of $25.75 million. LDK closed at $1.40 yesterday afternoon.

7/9/13: How High Can Tesla (NASDAQ:TSLA), SolarCity (NASDAQ:SCTY) Go?

• First Energy Corp (NYSE:FE) has announced that it plans to deactivate two coal-fired power plants in Pennsylvania by the end of the year. The reason? FE claims its weak power prices and the high cost of complying with stricter environmental rules. But let’s face it, the primary culprit is dirt cheap natural gas, and this is unlikely to change anytime soon. The two coal-fired power plants that are about to be put out to pasture represent about ten percent of the company’s total generating capacity. Interestingly, FE doesn’t look like a bad deal right now. I like it below $36.00, particularly with that 6% dividend.

• It looks like shorts might be getting squeezed again today on SolarCity (NASDAQ:SCTY). The stock is up a little more than one percent this morning, touching $41.50. If it crosses $42, we’ll likely see a run up to around $46. Full disclosure: I currently own shares of SCTY.

• Tesla (NASDAQ:TSLA) crossed $120 for the first time this week. In pre-market, it’s now trading above $125. Will it keep heading north? We’ll soon find out.

7/15/13: SolarCity (NASDAQ:SCTY) Will Profit from China Announcement

China has announced that it plans to more than quadruple its solar capacity to 35 gigawatts by 2015. Folks, this is massive and should not be ignored. Particularly because China-based solar companies are so heavily reliant upon the actions of the Chinese government. From mind-boggling incentives and subsidies to mandated solar integration, the Middle Kingdom is doing everything it possibly can to keep its solar machine running.

Certainly this is good news for Chinese solar stocks. The major players here, like Trina Solar (NYSE:TSL), Canadian Solar (NASDAQ:CSIQ), and JA Solar (NASDAQ:JASO), are all up in early trading. But this is also good news for solar installers looking to keep those cheap panels rolling in. Certainly solar financing and leasing company SolarCity (NASDAQ:SCTY) has a lot to gain from this, too. SCTY is also up in early trading, and actually crossed $44.40 in pre-market.

7/16/13: Siemens (NYSE:SI) Could Benefit from New Green Bonds

More good news for renewable energy supporters. This morning we learned that the European Investment Bank has issued an $848 million “green bond” which it will use to finance energy efficiency and renewable energy projects in Germany and France. I suspect that with the Germans getting so aggressive on offshore wind, Siemens (NYSE:SI) is likely to benefit from new projects getting financing through the “green bond.”

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.

The post Two Weeks In Cleantech, July 2nd to July 16, 2013 appeared first on Alternative Energy Stocks.

Jeff Siegel

This Car gets 108 Miles per Gallon

Although it’s little more than a compliance car (which is why it’s only being sold in California), the electric Fiat 500e actually offers some pretty impressive fuel economy numbers.

The official EPA numbers indicate 108 MPGe. This makes it the most efficient highway car in the marketplace. The range clocks in at around 87 miles, so that means it probably gets anywhere from 60 to 90 miles, depending on driving style and conditions. With a level 2 charger, you can juice it up in about 4 hours.

I-wind

Although the patent was filed back in June, 2011, Apple’s (NASDAQ:AAPL) media machine kicked into gear last week as it began to spread the news of the company’s new wind turbine.

The technology, which allows for the generation of electricity by converting heat energy, instead of rotational energy, offers on-demand power by way of stored wind energy.

According to the patent, the new generation system can reduce costs associated with natural variations in wind supply. As well, it can be used as a replacement for conventional energy storage systems.

Of course, this isn’t Apple’s first investment in renewable energy. You may remember last year when Apple filed plans with the North Carolina Utilities Commission to double the number of fuel cells the company operates at its Maiden data center.

These fuel cells, which are manufactured by Bloom Energy, use methane from a nearby landfill as a feedstock. Apple also owns and operates a 20 megawatt solar farm in North Carolina for the same data center. That solar farm, by the way, is the largest end-user-owned onsite solar array in the nation.

Mitsubishi Soleil

Mitsubishi Corp. has recently announced that it has acquired a 50 percent stake in a solar power plant in France. This particular power plant boasts a capacity of 55 megawatts, and has been operational since June.

Interestingly, this news comes around the same time we learn that France has doubled the production capacity target for solar. The government intends to offer more financial support to small solar farms that use European-made panels.

Although I’m always happy to see the solar sector get some love in the policy arena, I have little faith in the ability of the new French government to avoid continued fiscal hardships. New regulations and extremely high tax rates for the wealthy are likely to accomplish little more than chasing out those who provide employment for French workers.

Of course, I could be wrong. I suppose we’ll just have to wait and see. In the meantime, I expect we’ll see a nice little bump in solar installations in France this year.

The Big Green Apple

New York Governor Andrew Cuomo has proposed a $1 billion Green Bank in an effort to further develop the state’s clean energy economy.

Cuomo said the “Green Bank” would help lower capital costs and bring cleaner energy solutions to scale. He went on to say. . .

“The NY Green Bank leverages private capital in a fashion that mitigates investment risk, catalyzes market activity and lowers borrowing costs, in turn bringing down the prices paid by consumers. Through the use of bonding, loans and various credit enhancements, a Green Bank is a fiscally practical option in a time of severe budget conditions. The NY Green Bank is another forward-looking way for our state to lead on energy policy and improve our residents’ economic prospects and quality of life. The benefits of early innovation will be tremendous, as we see states around the nation moving quickly to catalyze their clean and renewable energy sectors.”

Kudos to Cuomo for manning up on this one!

China and India Will Lead Global Solar Market Growth in 2013

In a recent note to investors, Deutsche Bank predicted the global solar market to rise 22 percent to 33.4 gigawatts this year as a result of increased investment in China and India.

Although declines are anticipated in Germany and Italy, those are expected to be offset by aggressive solar agendas elsewhere.

China is also moving forward to cut its idled wind farm capacity this year.

As you know, China’s race to install wind turbines at such a rapid pace left many without connections to the grid due to lack of transmission and distribution. This, perhaps, was one of the worst cases of planning we’ve ever seen in this space.

However, China’s State Grid Energy Research Institute claims that the rate of wind capacity still sitting idle could fall from over 20 percent to ten percent this year. It’ll be interesting to see how this pans out over the course of the year.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where his notes were first published.

The post The Big Green Apples: The Week In Cleantech, Jan 11, 2013 appeared first on Alternative Energy Stocks.

Jeff Siegel

PTC Extension

It looks like the wind power tax credits survived the fiscal cliff deal. But I wouldn’t get too excited. The credit was extended only for an additional year. Which, as we see time and time again does not allow for any real, long-term commitment by developers or manufacturers.

Of course, I still don’t believe subsides are the best way to transition our energy economy, anyway. The truth is, decades worth of subsidies in the energy markets has never allowed for a real free market to flourish. It’s why prohibitively expensive nuclear power still exists in its current form and it’s why you don’t pay $8.00 for a gallon of 87 octane. If you did, we wouldn’t need any form of tax credit to help sell electric cars. But that’s another diatribe, for another day.

In the meantime, I am happy to know that the extension of the tax credit could end up saving as many as 37,000 jobs. I just hope they’re keeping their resumes fresh for next year.

Editor note: The PTC’s provisions were also changed so that projects under construction in 2013 can qualify.  This change also applies to geothermal projects.  More here.

Record German Solar Installations Despite Cuts

Despite cuts to solar subsidies in Germany, German developers added a record number of solar panels in the first 11 months of last year.

Installations resulting in more than 7,200 megawatts more than doubled that which was initially targeted by the government. This is a 62 percent gain over the previous year’s numbers. For the full year of 2012, installations are expected to top 8,000 megawatts.

Cuomo Boosts Energy Efficiency in New York

New York Governor Andrew Cuomo recently issued an Executive Order that directs state agencies to increase the energy efficiency of state buildings by 20 percent. The goal must be met by 2020.

The Governor also launched a new program that will use state building energy data to prioritize projects that can deliver the greatest energy savings per dollar. Those buildings that are the largest and most inefficient will be among the first to undergo energy efficiency upgrades, such as new lighting fixtures and controls, HVAC systems, electric motors and automated energy management systems.

Sunpower (NASD:SPWR) Soars on Buffett Deal

It was announced January 2nd that Warren Buffett’s Berkshire Hathaway bought two solar projects from SunPower Corporation (NASDAQ:SPWR) in a deal said to be worth about $2.5 billion.

This is great news for this particular domestic solar company. As CEO Tom Werner noted, the stamp of approval from a Buffett utility combined with expected cash flow from the projects will make SunPower more bankable and more credit worthy.

Of course SunPower continues to deal with very tight margins in a very competitive space. And although the Buffett deal is a feather in its cap, SunPower is still a bit risky for me. That being said, I wish nothing but success for SunPower. At the time of this writing, SPWR is up about 34%.

Hawaii Reduces Solar Subsidies

We recently learned that the state of Hawaii is about to see a 50 percent reduction in the state’s solar tax credit.

Although I don’t tend to be a fan of subsidies, in Hawaii, this is really a matter of economic security.

Bottom line: With nearly all of Hawaii’s power coming from diesel generators, this is just an accident waiting to happen. And if you destroy the beaches, you destroy the economy. It’s that simple.

Hawaii is a treasure among treasures, and lawmakers should be doing everything possible to rapidly decrease the island’s reliance on imported oil. The climate is absolutely perfect for solar, wind and geothermal, as none of this needs to be shipped in. The islands are blessed with an abundance of these resources on a daily basis.

Insurer XL Refuses to Pay For Fisker’s Sandy Losses

As a result of severe flooding during Superstorm Sandy, high-end extended range electric car manufacturer Fisker Automotive lost 340 vehicles, estimated to be worth about $33 million.

The company followed up with its insurer, but word is, that insurer, XL Insurance, has denied Fisker’s claim.

This is just one more headache in a long line of headaches for the automaker.

Fisker is now suing XL over the claim.

I’m not sure how this will all pan out, but certainly $33 million worth of damage to a startup electric car maker is nothing to sneeze at. You can read more here.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where his notes were first published.

The post Wind Industry Lifeline, SunPower’s Buffett Deal: The Week In Cleantech, Jan 4, 2013 appeared first on Alternative Energy Stocks.

Jeff Siegel

December 10: 47,500 Electric Cars

• Electric Car Sales Soar. . .Again

  In case you missed it, Todd Woody over at Forbes reported last week that electric car sales reached a record in November for the fourth consecutive month. Total sales of electric cars for 2012 are now up to 47,500.

  You can read the entire piece here.

• Chinese Win Bid for US Battery Maker

  Well, we thought Johnson Controls (NYSE:JCI) was going to take the lead on this one. We were wrong. Wanxiang America Corporation has just picked up nearly all of A123’s assets for $256.6 million. A bargain if we’ve ever seen one. The only thing Wanxiang didn’t get were military contracts, which have been acquired by U.S.-based Navitas Systems for $2.25 million. You can read more here.

• 100 Megawatts of South African Solar

  Suntech (NYSE:STP) and Siemens (NYSE:SI) are getting ready to supply about 100 megawatts of solar panels for two projects being developed in South Africa. The systems are expected to produce about 180 gigawatt-hours of electricity, or enough to power about 15,000 homes.

December 11: Solar Installations Booming

• According to a new report, 684 megawatts of solar panels were installed in the US during the third quarter. This is 44 percent more than Q3 of last year. And solar installations in the current quarter may nearly double from Q3 to 1,200 megawatts. This would represent the most installations ever in a three-month period. The U.S. Now has more than 6.4 gigawatts of installed solar electric capacity, or enough to power more than one million average American households. You can read more here.

• Shell Goes Solar

  Royal Dutch Shell, along with three venture capital firms, is pumping $26 million into GlassPoint Solar – a California solar startup that uses the sun to heat water and create steam for enhanced oil recovery. Most of these operations burn natural gas to create steam, but GlassPoint claims its technology is cheaper. You can read more about that here.

12-12-12: Is 99% Renewable Energy Possible?

• 99% Renewable Energy

  According to a new study by the University of Delaware and Delaware Technical Community College, a well-designed combination of wind, solar, storage and fuel cells could nearly exceed electricity demands while keeping costs low.

  You can check on the details here.

• Electric, Natural Gas Fleets Mandated in Indianapolis

  By 2025, Indianapolis Mayor Greg Ballard hopes to transition the city’s entire fleet of vehicles to electric and natural-gas powered vehicles. The Mayor says this transition should save taxpayers $1,200 a year per car. You can read more here.

December 13: Is China’s Solar Industry Getting Desperate?

• Another Billion Dollars for Chinese Solar

  Well it looks like the Chinese government is jumping in again to save its struggling solar industry. The Middle Kingdom’s finance minister recently reported that China will raise its subsidies for its solar sector by $1.1 billion this year. As well, the nation will continue to integrate more solar domestically in an effort to work through excess inventory.

• Nissan Ready to Ramp-Up Production of Electric Car

  Nissan announced this week the launch of the United States’ largest lithium-ion automotive battery plant in Smyrna, TN. The facility, which is making battery components for the ramp-up of production of the all-electric Nissan LEAF early next year, is one of three of its kind operated by a major automaker. Check out the video below. . .

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where his notes were first published.

The post Solar Installations Booming, EV Sales Soar: The Week In Cleantech, 12-15-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel and Tom Konrad

October 14: Is a Heating Oil Crisis Coming?

Heating Oil Furnace.  Photo by Tom Konrad

“People still use heating oil?”

Those were the words said to me by a friend of mine who’s spent 41 of his 45 years on earth in Southern California.

To be honest, I’m not sure he’s ever even seen an oil delivery truck.

But here in the Northeast, there are still plenty of folks that rely on heating oil. Particularly those living in older homes in the cities, and of course up in some of the more remote rural areas of Pennsylvania, Vermont and New York, where you still can’t access a natural gas line.

In any event, those who do still rely on heating oil are certainly hoping for a mild winter this year. Because according to the Energy Information Administration, a crisis could be coming.

Check out this excerpt that was recently published in the industry publication, This Week in Petroleum. . .

For the week ending October 5, distillate inventories in the U.S. Northeast (PADDs 1A and 1B) were 28.3 million barrels, about 21.5 million barrels (43 percent) below their five-year average level (Figure 1). Distillate inventories have historically been used to meet normal winter heating demand but are also an important source of supply when demand surges as a result of unexpected or extreme cold spells. The low distillate inventories could contribute to heating oil price volatility this winter. In addition, outages at several major refineries, notably Petroleos de Venezuela’s Amuay Refinery, Shell Oil’s Pernis Refinery in the Netherlands, and Irving Oil’s Saint John Refinery in Canada, have added to the fundamental market pressures in the Atlantic Basin.

Translation. . .

If you’re relying on heating oil to keep your home warm this winter, you definitely should consider topping off the tank before winter kicks in, and maybe get used to wearing a light sweater.

And for more long-term planning. . .

If you can access a natural gas line, I strongly recommend making the investment. Although natural gas prices are going to start heading back up next year, there’s still going to be a lot more volatility in heating oil pricing going forward.

Interestingly, up in some of the more rural areas of New York and Vermont, where heating oil is quite common, solar is quickly becoming very popular. Particularly for farmers who use solar to supplement their power generation.

One gentleman I met last week during a trip to Essex, NY installed a solar array two years ago. Since then, he’s been able to offset his heating oil usage by more than 40 percent. And at the Essex Farm, owners use a sizable solar array to power their small, but profitable operation.

Not bad.

I suspect that as solar prices continue to fall while oil prices continue to rise and remain volatile, we’ll see more and more solar in some of these rural areas where family farms still exist, and natural gas is not on its way.

October 16: Will Bankrupt Solyndra Get Another $1.6 Billion?

As Bright as a Beijing Sky

While taxpayers get screwed on the Solyndra deal, Solyndra owners may now be able to walk away with another $150 million.

I’m serious! Turns out the IRS has suggested Solyndra’s bankruptcy plan was essentially a way for owners to use an empty shell corporation to avoid paying taxes.

As stated by the IRS, the only reason for the shell corporation to exist post-confirmation is to enable its owners to exploit tax attributes, which would be lost in liquidation.

Tax expert and Forbes’ contributor Robert Wood recently wrote: “Is it a good deal for creditors to get $7 or $8 million out of the Solyndra mess? Maybe, but the IRS claims the outsize tax benefits Solyndra’s smiling owners will reap are more like $150 million.”

If this all adds up, I think the real conspirators here are the folks that facilitated this entire Solyndra fiasco.

At least the Chinese have a market for their product…

Of course, China’s dominance in the solar space won’t last forever. The Middle Kingdom’s heavily-subsidized and heavily-manipulated solar industry will eventually crumble, because over-investment always leads to failure.

Nouriel Roubini pointed this out last summer, using the Soviet Union in the 1960s and 1970s, and East Asia before the 1997 financial crisis as examples of over-investment scenarios that have gone wrong.

Rest assured global solar demand will only continue to grow by leaps and bounds. And this is why the big dogs like GE (NYSE: GE) and Siemens (NYSE: SI) are watching and waiting patiently, ready to pounce when the future of China’s solar industry inevitably becomes as bright as a Beijing sky during rush hour.

If you’re unfamiliar with that reference, here’s a visual:

Some view, huh?

October 15: Is A123 Systems (NASDAQ:AONE) Going to Zero?

There was so much enthusiasm when high-performance battery manufacturer A123 Systems (NASDAQ:AONE) came on the scene.

The promise of an advanced battery manufacturing facility pumping out batteries for next-generation electric cars while providing jobs for US workers was a bold one, and one that a lot of folks cheered. But certain realities rapidly turned that promise into what now looks like another bankruptcy in the alternative energy space.

Yesterday A123 put out the following statement. . .

“The company may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code. No assurance can be given that the company will be able to avoid restructuring, reorganization, or a bankruptcy filing.”

Now despite the fact that we never wished anything but success for the company, we’ve been warning investors all year about this one, even when a handful of analysts got all giddy when the stock popped back in June.

Here’s what I wrote back then. . .

Yesterday, A123 Systems (NASDAQ:AONE) shot up more than 50 percent after announcing it had developed an improved lithium-ion cell that can cut costs of electric cars.

While I’ve always been a big supporter of this company (wishing them the best), as an investor, I can’t help but to wonder what happened yesterday.

Just a couple of months ago, the company began replacing defective battery packs at a cost of $51.6 million. This helped the company report a record loss of $125 million for Q1, 2012. The company even had to issue a “going concern” statement.

Last month, when shares closed below $0.90 the company had long-term debt of $161 million compared to a market valuation of $129.3 million. To put that in perspective, when the company went public, it debuted at $13.50.

Now don’t get me wrong. The company’s announcement of its technological breakthrough should not go unnoticed. But neither should the fact that this company is still dealing with $51 million in battery
replacements, foreign competitors that continue to maintain a significant manufacturing cost advantage, and of course, bankruptcy concerns.

Sure, technological breakthroughs are great. They’re important, and they’ve been produced by plenty of other companies that no longer exist today. That’s the reality. Personally, I do hope A123 comes out on top when all is said and done. But it’s going to be a long, tough ride. And I just don’t see any rational justification for a 50% pop on an announcement of a technological breakthrough from a company that’s barely treading water right now. In fact, I honestly wouldn’t be surprised if the company went belly up by the end of the year. I hope I’m wrong on that, but it doesn’t look good.

Unfortunately, I may not have been wrong when I wrote those words.

And what really makes this sting is that A123 landed a $249 million federal grant to build a U.S. factory back in 2009. Rest assured, you’ll be hearing plenty about that over the next few days. And rightly so. After all, these are your tax dollars we’re talking about here. And you have every right to know how they’ve been spent.

Of course, you’ll probably be hearing all about it tonight during the second presidential debate, too. Romney campaign strategists must be doing back flips right now.

I just hope the analysis following the debate doesn’t mutate into yet another attack on electric cars. Which, as I’ve said a thousand times before, serve as one of the many tools we can use to end our reliance on OPEC.

But I’m sure it will. Because nowadays, it’s more important to dive into the pool of partisan buffoonery than it is to embrace positive contributions to our national security, our environment and our nation’s long-term economic sustainability.

And so it goes. . .

October 17: First Solar (FSLR) Lands Huge Deal

TK: First Solar (NASDAQ:FSLR) has signed a memorandum of understanding with PT. Pembangkitan Jawa Bali Services to collaborate on and deliver 100 megawatts of utility-scale solar power plants in Indonesia.

“We are excited by the opportunity to collaborate with a world leader in solar energy for the development of utility-scale PV power plants in Indonesia. Solar PV electricity can help Indonesia meet its fast-growing power needs while reducing its dependence on fossil fuels,” said PJB Services president Bernadus Sudarmanta in a press release. …

Full article at Wall St. Cheat Sheet.

October 17: Satcon (SATC) Files for Bankruptcy

TK: Details at Renewable Energy World.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where his notes were first published.

Tom Konrad, CFA is Editor of AltEnergyStocks.com.

The post Bankruptcies (A123,Satcon) and Life After (Solyndra): The Week In Cleantech, 10-19-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel

September 25: Toyota (NYSE:TM) Scraps Electric Car

2012 Toyota Prius photographed in Washington, D.C., USA.. (Photo credit: IFCAR via Wikimedia Commons)

Claiming the company misread the market, Toyota (NYSE:TM) is scrapping its plans for a global roll-out of an electric mini-car called the eQ.

To be honest, I’m not particularly surprised. Toyota has not been very aggressive, or interested really, in pursuing the electric vehicle (EV) market. And I get it. When it comes to delivering a superior conventional hybrid vehicle, Toyota still runs the show. The Prius is one of the most popular vehicles in the marketplace, with more than 3 million units sold since the hybrid superstar first launched.

My point is, it doesn’t need EVs to lure fuel economy-conscious drivers into showrooms.

Look, it’s no secret that when gas prices head north, so do Prius sales.

Hell, back when oil crossed the $140 mark and gasoline was well over $4.00 a gallon, folks were running to Toyota dealers and paying above sticker price to get one of these vehicles. Even today, boasting 50 miles-per-gallon can certainly help provide a nice hedge against unstable gas prices.

So when it comes to superior fuel economy, Toyota’s got a good thing going. And I suspect the company has no interest in pouring a bunch of capital into EV development, when all it has to do to keep fuel economy-conscious drivers coming in, is continue to inch those miles-per-gallon up every few years with Prius upgrades.

That being said, I do wish company reps would back off the anti-EV rhetoric – however subtle it may be.

Here’s what I mean. . .

In response to this recent decision, Toyota’s vice chairman Takeshi Uchiyamada said:

“The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge.”

Do not meet society’s needs?

Roughly 70 percent of US consumers drive no more than 40 miles per day. Every all-electric car from a major automaker on the road today can deliver that – and then some.

How long it takes to charge?

This is such a bullshit argument. Every EV owner I know charges while he sleeps, wakes up, drives to work, returns home and plugs back in. It ain’t rocket science, and unless you only sleep for four hours a night, long charging times are really not the deal-breaking issue that some would have you believe.

Look, the thing is, Toyota doesn’t need to come at it this way. The company does not need to justify its decision to anyone. And certainly management doesn’t need to recite the tired and inaccurate arguments of the anti-EV brigade.

Truth is, Toyota has done a lot to help integrate fuel economy into the car-buying lexicon. The company charged forward with its hybrid offerings when a lot of folks mocked the technology and the ability of Toyota to even make it work economically.

The company proved the naysayers wrong, and today Toyota gets the last laugh.

So if Toyota decides not to pursue electric vehicles right now, that’s fine. This doesn’t change my opinion of the company or of the Prius, which is a superior vehicle. And it definitely doesn’t change my opinion regarding Toyota’s leadership role in providing vehicles that can help us reduce our foreign oil consumption.

But putting out those careless and untrue comments about the electric vehicle market? Come on, Toyota. You’re better than that!

September 25: Will Tesla (NASDAQ:TSLA) Crash and Burn?

The Tesla Model S, from the unveiling on 26-Mar-2009. (Photo credit: Wikimedia Commons)

Back in March, I was speaking at a conference about the future of personal transportation.

I discussed how a new generation called the Millennials or Generation Y would ultimately force change in the marketplace and present a real challenge to car makers.

You see, there have been a number of studies that have suggested this particular generation, which represents the kinds of numbers that allowed the baby boomers to dictate a lot of our consumer decisions today, is less interested in car ownership than previous generations, preferring public transportation, biking, walking and car-sharing services like Zipcar (NASDAQ:ZIP).

And for those folks who are now around the ages of 19 and 31 that are receptive to car ownership, they account for about 25 percent of the US automobile market. In ten years, that’s expected to rise to 40 percent.

So what will they drive?

According to a recent Deloitte study, these folks tend to mock gas guzzlers and embrace hybrid, plug-in hybrid and electric vehicles (EVs).

If you’re a regular reader of these pages, you know I’ve long been a supporter of electric vehicles, and I firmly believe that by the end of this decade, EVs will capture between one and 1.5 percent of the total vehicle market.

On the surface, this may not seem like much. But it’s actually a pretty aggressive target, and a pretty big deal.

As a result, we’ve profited from the early development of this market from every angle. Although most of this was the result of riding the early wave of lithium and high-performance battery plays a few years back. Today, it’s a bit more difficult. And while I remain a strong supporter of electric vehicle development, I’m extremely cautious as an investor. In fact, the only EV-related stock I’ve played this year was Tesla (NASDAQ:TSLA), and I jumped out back in March after the stock started looking a bit top-heavy after crossing the $36 mark.

Since then, I’ve watched the stock tumble and rise a few times. I’ve seen a number of trading opportunities (although I did not play the stock this way), and I’ve read some pretty long and detailed analyses of the company by both credible analysts, overly optimistic bloggers posing as analysts and the typical anti-EV narcissists who get off at watching a game-changing industry struggle with the early bumps and bruises that come with any disruptive technology. The latter, of course, typically provide little more than noise. But I suspect they’ll be coming out in full force this week after Tesla’s recent announcement that it was cutting its 2012 revenue forecast.

Due to a slower-than-expected rollout of the Model S sedan, the company has adjusted its full-year revenue to come in at around $400 million to $440 million. This is down from Tesla’s prior outlook of between $560 million and $600 million.

This is a pretty big discrepancy, and in pre-market the stock has fallen about ten percent.

So today, the haters will be busy little bees, finding as many ways as they can to not only trash Tesla, but the EV market as a whole. We’ll hear about how no one wants these cars, how sales are disappointing, how the technology “isn’t there yet” and probably a few cheap shots at Washington for supporting the development of so
mething that can ultimately help us displace a decent amount of foreign oil.

It’s all bullshit.

Don’t get me wrong. I’m not rushing out to buy Tesla. And quite frankly, I think some of these recent upgrades are insane. I was truly surprised, and a bit suspicious, when I read that Morgan Stanley put a $50 price target on this one.

Of course, I don’t have access to the same intelligence and data as the suits over there, so perhaps I’m missing something. But I don’t believe Tesla will really impress enough to push the stock to those levels until we get some better clarity on Model S volumes and gross margins in Q4.

I remain bullish on Tesla as a small, but growing force in the auto industry. And I definitely wouldn’t bet on Tesla to crash and burn. But I’d be hesitant about believing overzealous price targets. At least until we see how Q4 shakes out.

Editor’s Note: Also in EVs…

While EVs are struggling in the West, China has a plan for their rapid adoption.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.

The post EV Woes at Tesla and Toyota: The Week In Cleantech, 9-28-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel

September 17: Will LDK Solar (NYSE:LDK) Become a Penny Stock?

LDK Solar (NYSE:LDK) has sent a revenue warning and cut its full-year revenue forecast for the second time this year. The company is now expecting Q3 revenue to come in at between $220 million and $260 million. Analysts were expecting more than twice that on the low-end of LDK’s estimates with $453.6 million. And to add insult to injury, I overhead an analyst last week saying China solar companies, like LDK, are on a one-way track to penny stock status. Ouch!

I was actually at the Solar Power International Conference last week, where I overheard that analyst, and I’ll have some updates on the solar space later in the week.

All in all, the solar industry is exactly where I’ve been saying it is – maturation mode. Growing pains are really starting to sting, but there are definitely some silver linings, especially for installers. Although some companies falling into the installation category are about to get trounced thanks to a Consumer Reports investigation that’ll highlight a handful of shady operations in the solar installation game.

That issue of Consumer Reports is coming shortly, and you can read more about it here. In the meantime, we continue to watch everything unfold from a safe distance, waiting patiently for a bottom sometime next year.

September 18: Walmart (NYSE:WMT) Solar Development

Last week, I attended the Solar Power International Conference in Orlando.

As always, I was overwhelmed with an avalanche of data that continues to illustrate the rapid growth of the solar industry.

There are a few reports I picked up at the conference that I’ll be sharing with you throughout the week.

The first comes from the folks at the Solar Energy Industries Association and the Vote Solar Initiative, and it highlights the top 20 commercial solar users in the US.

Check it out. . .

Some key findings of the report include:

• The top 20 corporate solar users’ installations generate an estimated $47.3 million worth of electricity each year. Together, US commercial solar installations have reduced business’ utility bills by hundreds of millions of dollars annually.

• The amount of solar installed by the top 20 solar-power companies could power more than 46,500 average American homes. Combined, US commercial installations could power more nearly 400,000 American homes.

• More than 1.2 million solar PV panels were used for the top 20 corporate solar users’ installations. Combined, these arrays would cover more than 544 acres of rooftops.

• Walmart and Costco combined have more solar PV installed on their store rooftops than all of the PV capacity deployed in the state of Florida.

• The top 10 companies (by capacity) have individually deployed more solar energy than most electric utilities in the US.

September 20: GE (NYSE:GE) Lands $63 Million in New Battery Orders

General Electric (NYSE:GE) announced yesterday that its new Energy Storage Unit has landed $63 million in new Durathon battery orders since that particular unit launched in July. In its first weeks of operations, it secured 10 new telecom customer orders in Africa, Asia and the US. These batteries will power more than 3,500 cell towers.

As supporters of the new energy economy, we understand the importance of cost-effective energy storage technologies. And while there are plenty of opportunities out there, GE will remain aggressive. There’s just too much at stake for this global behemoth not to.

The batteries that will power those 3,500 cell towers can function in a variety of extreme conditions and store as much energy as lead-acid batteries twice its size, while lasting up to ten times longer.

In other energy storage news, a small UK company called Atraverda, Ltd. just secured its first commercial battery order in the US. The company announced yesterday that it finalized a supply agreement with ZENNRG to supply batteries for a smart grid, distributed energy storage application. The first year of the supply agreement is worth about $1.2 million.

ZENNRG is a Texas-based firm that develops, manufactures and sells energy storage modules for distributed storage markets.

Atraverda produces Bipolar Valve Regulated Lead Acid batteries using a proprietary conductive ceramic technology that results in greater energy efficiencies at lower costs. As well, the construction of these batteries requires 40 percent less lead than traditional lead-acid batteries.

September 21: Can Electric Cars Survive Without Subsidies?

A new Congressional Budget Office (CBO) report has indicated that US federal policies to promote electric vehicles will cost $7.5 billion through 2019 and have little impact on overall national gasoline consumption over the next several years.

It’s that last part that I’m pretty sure the media knuckle-draggers will neglect to mention.

I tend to put a lot of faith into what the CBO says. It seems to be one of the few places where partisan influence is absent. So I have little doubt that there is relevance to this report. That being said, priming the pump for a transition away from conventional internal combustion isn’t going to result in a major displacement of gasoline and CO2 emissions overnight.

Look at it like this. . .

When the US government plowed an enormous amount of tax payer dollars into developing an infrastructure that would ultimately support an Interstate Highway System, those highways weren’t particularly crowded in the first few years following their completion. It took time.

The US government also provided an enormous amount of incentives to automakers in the early part of the last century, as it was clear that taking the lead on auto manufacturing would strengthen the nation’s economy and provide a strategic advantage in terms of national security and military initiatives.

I would argue that electric vehicles offer the same benefits.

The world will eventually move away from conventional internal combustion. It won’t happen in a matter of a few years or even a few decades, but it will happen. And it’s starting now. And as we slowly move away from conventional internal combustion, we can slowly begin the next chapter in taking the lead on the next generation of auto manufacturing.

As well, the more EVs we have on the roads, the less foreign oil we demand. That’s an indisputable fact that should not be trivialized. And little by little, as more of these electrified vehicles hit the streets, the more wiggle room we’ll have to compete and prosper in a post-peak world.

It’s also worth noting that while some may kick and scream about $7.5 billion over the course of about ten years, which works out to about $75 million per year, we continue to charge taxpayers roughly $4 billion a year for oil industry subsidies. And of course, this does not include the blood we continue to spill overseas in an effort to secure those lucrative oil supplies.

So when folks start carrying on about this new CBO report, I would urge you to remind those with partisan blinders that $4 billion a year in oil subsidies does zero to displace gasoline consumption and CO2 emissions, and actually facilitates our continued reliance on a resource that is rapidly being depleted.

$75 million a year, however, actually provides the platform for a strategic transition away from a transportation system that will only cost more tax dollars and
more lives as we move forward.

Now I should clarify, I’m no fan of any of these subsidies. Quite frankly, I’d love nothing more than to see every single energy subsidy abolished and allow the market to dictate the winners and losers – not Washington. Because if that were to happen, oh we’d quickly find out just how expensive gasoline really is – and just how lucrative electrified transportation will be.

Electric vehicle production costs will continue to fall as we move forward, while the costs to maintain our reliance on oil will only increase.

Of course, if we do pull back the curtain of subsidies and allow the consumer to pay the real price for gasoline – one that is not the result of both direct and indirect subsidies – you wouldn’t need a single tax credit to get folks into electric cars. The price at the pump would be well over $6.00 a gallon, and those EVs would practically sell themselves.

Now I’m not so naïve to believe that will happen anytime soon. The corporate puppet masters that run Washington simply won’t allow it. But if we’re going to be honest about the value of electric vehicles, we must at least be honest about the fact that Washington continues to funnel more of your tax dollars to a very mature and very profitable oil & gas industry than it does to facilitating the growth of vehicle electrification.

And if we’re going to be honest about letting the market dictate winners and losers, than we must stand behind our convictions and hold both sides of the aisle accountable for continuing the illusion that a free market really exists.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.

The post Solar & Battery Orders; Solar Stock and EV Woes: Two Weeks In Cleantech, 9-22-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel

August 21: What Will Happen to Trina Solar (NYSE:TSL)?

Following the hypocritical “unfair subsidy” complaint against China solar panel producers along with the 31 percent import duty placed on them by the US government, the Chinese have now responded through their Commerce Ministry by stating that the United States must cut support for six government-backed renewable energy programs or face unspecified penalties.

And so continues the trade war, which was launched by the sour-grapes management of SolarWorld,(PINK SHEETS:SRWRF) and supported by those in Washington who have no clue how bad this could be for the US economy, the growth of clean energy, and domestic job creation.

China’s Commerce Ministry said that it will now adopt relevant legal measures, demands that the United States cancel part of the measures that violate World Trade Organization rules and give Chinese renewable energy firms fair treatment.

This isn’t even close to over.

Meanwhile, and this certainly wasn’t unexpected, Trina Solar (NYSE:TSL) just missed on revenues and lowered shipment guidance for FY 2012. It’s crazy, I made a fortune on Trina just a few years back. Once one of the most lucrative solar plays in the market, hitting highs in excess of $30 a share, it’s now trading for around $4.60.

Although solar’s future remains bright, it remains a minefield for investors. And as I’ve stated in the past, I will likely remain on the sidelines until sometime in 2013, when more consolidation tightens up the marketplace, and more of that glut gets eliminated.

August 22: The Wind Energy Taxpayer Boondoggle

Companies like Gamesa (PINK SHEETS:GCTAF) and Vestas (PINK SHEETS:VWDRY) were once all the rage as the wind energy industry embarked on a tremendous growth trajectory.

But like all industries that experience rapid growth, eventually the party comes to an end, and reality sets in.

Although the wind energy industry continues to grow dramatically all over the world, recessionary headwinds, loss of government support, and dirt cheap natural gas are creating a temporary slow-down. As a result, the wind energy industry is going to have a rough time in 2013.

Truth is, we’ve seen plenty of indications of this throughout 2012. Particularly with so many wind turbine manufacturers idling or shutting down plants, lowering guidance and laying off workers. In fact, we learned today that Vestas is now set to go forward with its second round of lay-offs this year. This time around, 1,400 folks will lose their jobs.

The company has not made it clear where the jobs will be cut, but you can bet that a sizable portion will be from the US, where there just doesn’t seem to be enough support in Washington to extend the wind energy tax credit for another year.

Although I would argue that a one-year extension is of little use at this point.

The best way to move forward on this is to extend the credit for four to six years, with the understanding that it will never be extended again. This will at least give the wind industry enough clarity to make long-term decisions and prepare accordingly. That’s not possible when you keep handing out these tax credits every year or two. As well, it’ll keep the industry from turning into a decades-long tax payer money sucker. We’ve already gone down that path with nuclear.  We don’t need to make the same mistake twice.

As stated in a 2011 report published by the non-partisan group Union of Concerned Scientists, after decades of government support, nuclear power is still not viable without subsidies.

The report also notes that government subsidies to the nuclear industry over the past 50 years have been so large in proportion to the value of the energy produced that in some cases it would have cost taxpayers less to simply buy kilowatts on the open market and give them away.

And as reported in Forbes. . .

“Nuclear power is no longer an economically viable source of new energy in the United States, the freshly-retired CEO of Exelon, America’s largest producers of nuclear power, said in Chicago Thursday. And it won’t become economically viable for the foreseeable future.”

Not economically viable?  After 50 years of taxpayer subsidies?!

Now understand, this is not an attack on the nuclear industry. It’s merely an observation of how subsidies can become dangerous and addictive. We simply can’t afford any more of these decades-long subsidies burdening taxpayers. Not for anything.

I don’t know if the wind energy tax credit will be extended before the end of the year.  I am doubtful.  But if it is extended, and it’s only extended for one year with the possibility of going through this same song and dance next year, and the year after that, and the year after that – well, we’re just wasting valuable time and money.  And that’s not going to help anyone.

August 27: How Tesla (NASDAQ:TSLA) Crushes the new Hybrid Lexus

• The GS 450h, the new generation hybrid version of the Lexus GS 350 looks like it’s going to deliver an EPA-rated 31 mpg. This is a 35% improvement over the previous generation, and of course, a complete yawnfest. I get that this is about luxury and not necessarily fuel economy, but I’d happily take a Tesla Model S over a 31-mpg Lexus any day of the week. You can get a Tesla Model S for about $58,000 before the $7,500 tax credit. The 2013 Lexus GS 450h is priced at around $59,000. If I’m dropping $60k on a car, you have to at least give me the same fuel economy as a 50 mpg Prius. The Tesla Model S, by the way, delivers about 160 miles on a single charge. With that, I’d never have to pull into a gas station again. Unless maybe I wanted to grab a candy bar or bag of chips.

• It was once the world’s largest maker of solar cells. But around 2009, Q-Cells reluctantly handed over that title to a handful of low-cost suppliers from China. And today we learn that South Korea’s Hanwha Corp (NASDAQ:HSOL) is looking to buy the now insolvent German group. Of course, this comes as no surprise to those of you who are regular readers of these pages. We’ve been preaching about, and watching unfold, the continued consolidation of the solar industry. We expect to see more of this throughout the rest of this year and well into 2013 and beyond. We believe that by 2015, there will be fewer than a dozen major solar players operating globally. For now, we continue to watch everything play out from the sidelines.

August 28: California – Fiscally Responsible?

Although California tends to be a punching bag for fiscal irresponsibility, such rhetoric isn’t always honest. California, just like every other state in the nation, has its fair share of waste. This is certain. But thanks to a plan designed to reduce petroleum consumption in fleet vehicles, the Golden State has successfully slashed its petroleum use by 13 percent compared to a 2003 baseline.

Under Assembly Bill 236, California will reduce or displace
petroleum consumption by 10 percent by 2012 and 20 percent by 2020. Today we can see that the state is certainly on its way to reaching that goal.

Some of the actions that have enabled California to come this far include the following. . .

• In 2009, California eliminated 3,397 of the state’s oldest and most fuel inefficient passenger vehicles.

• Also in 2009, the state reduced vehicle miles traveled (VMT) by eliminating non-mission critical VMT. This was done by eliminating 2,121 vehicle home storage permits.

• In 2010, California restructured the lease rate of its rental fleet by separately billing state agencies for their fuel. As a result, these agencies began actively managing their fuel usage internally.

• In 2011, the state, along with Coulomb Technologies, installed 24 Level 2 fast-charge charging stations at five separate Department of General Services parking facilities.

• In 2012, Governor Brown issued an executive order for California’s state vehicle fleet to increase the number of its zero-emission vehicles through the normal course of fleet replacement so that at least 10 percent of fleet purchases of light-duty vehicles be zero-emission by 2015, and 25 percent by 2020.

• Also in 2012, California directed state agencies to order solar reflective colors when they acquire new light-duty vehicles. This enables a vehicle’s air condition system to work less, thereby reducing fuel consumption.

Quite frankly, this really should be used as a model for other states. There’s no doubt that a significant reduction in petroleum use serves to provide a budgetary buffer – particularly in these tough economic times that are only going to get tougher as inflation takes hold.

This also gives states the opportunity to get aggressive on petroleum reduction without relying on the heavy hand of the federal government.

That being said, this type of thing should also be done responsibly. California has unfortunately relied on the utilization of biodiesel and ethanol to help it reach its goals. Long-term, this is not economically or environmentally sustainable. Certainly it would be nice to see more natural gas and electricity serving as fleet fuels in the future.

August 29th: Wall Street Journal Misinforms Investors about Electric Cars

Jim Jelter over the Wall Street Journal wrote his obligatory electric vehicle-bashing piece right on schedule.

After it was announced that GM has temporarily suspended production of the Volt for a month in order to address both an oversupply issue and to prepare for production of the 2014 Impala, Jelter wrote that he didn’t buy it. What’s to buy?

We went through this song and dance back in March. GM temporarily halted production of the Volt due to an oversupply, and the anti-EV brigade ran to tell everyone that electric cars, including the Volt, were dead. Meanwhile, since that date, nearly 11,000 Volts have been sold.

This may not seem like much. And it’s not. In fact, it’s well below targets. But let’s revisit some other numbers from previous disruptive vehicle technologies.

When Toyota first launched the Prius Hybrid in 1997, the Japanese automaker sold only 3,000 units. GM sold 7,671 units in its debut year. So in its first year, GM sold 4,671 more units of a plug-in hybrid electric vehicle.

And look at the all-electric Nissan LEAF. In its first year, Nissan sold more than 20,000 units. And let me remind you that the LEAF carries with it the issue of range anxiety – something Prius owners never had to deal with. So essentially, we’re talking about a vehicle that requires the driver to make some pretty major changes in operating and fueling behavior.

Anytime you ask the consumer to do something differently than he’s done for years, it’s a monumental task. Yet more than 500% more units of the Nissan LEAF were sold in year one compared to the Toyota Prius in its debut.

Today, Toyota has sold more than 3 million units of that particular vehicle.

Jelter says consumers aren’t embracing electric cars. But the data suggests otherwise.

I’m not sure if ol’ Jimbo thought electric cars would bust out of the gate, selling millions in a matter of years. But I would suggest he, and other EV haters take a look at previous technologies that took decades to develop – but are now standard for most Americans. Cell phones, high-speed Internet. Hell, even what is now the outdated conventional internal combustion vehicle.

It was in 1903 when the president of the Michigan Savings Bank told Henry Ford’s lawyer that the horse was here to stay, and the automobile was only a novelty – a fad. We know how that one worked out.

Of course, the Volt story was really just used as a segue for an attack on the latest fuel economy standards that’ll take our CAFE up to 54.5 miles per gallon. Claiming that it will tack on another $3,000 to production costs, the new standard is being vilified. Never mind the fact that by 2025, when the standard will be reached, 87 Octane will likely cost you anywhere between $7.00 and $9.00 a gallon.

Now I fully admit, I rarely agree with much government intervention in these situations. Quite frankly, perhaps the market can get us to the 54.4 mpg fuel economy standard by 2025 on its own. But being that this really is a matter of national security, I don’t see much of a downside to this new CAFE standard. I’d certainly rather take these types of steps to displace foreign oil, then keep our military in the Middle East to protect and secure oil supplies.

Of course, none of this really matters. At this point, partisan slavery always wins out over rational policy. And while I wish guys like Jelter would stop contributing to the illusion that electric cars are failures, I at least give him credit for acknowledging that, as a nation, we are struggling to get long-term planning in place – because of politics. Following on his brief coverage of Romney’s joke of an energy plan, Jelter writes. . .

So what is it going to be? More regulation or less?

This is exactly the kind of political sparring that drives corporations crazy. What one party puts in place, the other seeks to remove. As long as their so-called principles leave no room for compromise, regulatory matters are doomed to lurch back and forth with every election. This stifles long-term planning and kills investment.

I couldn’t agree more.

Sadly, there seems to be no middle ground. And while the Wall Street Journal will continue to publish it’s anti-EV rhetoric – which, quite frankly, is incredibly unpatriotic seeing as EVs require not a single drop of Saudi oil to operate, left-leaning rags will continue to sing the praises of over-regulation, which absolutely inhibits our ability to kick OPEC to the curb.

Neither are doing us any favors.

That, my friends, should make this a national security issue, not a partisan one.

August 30: Is Suntech (NYSE:STP) a Giant Fraud?

• Yesterday, an Italian court filed criminal charges against an investment fund controlled by Suntech Power Holdings (NYSE:STP). The charges claim Suntech illegally built solar farms to take advantage of state subsidies. If the charges stick, about $100 million in subsidy-backed solar farms could be dismantled. This comes on the heels of the world’s largest solar panel maker getting hit with a class action lawsuit that claims the company didn’t reveal that a Global Solar Fund executive (and share
  holder) used $700 million in fake German bonds to help guarantee some of the fund’s financing. And just when you think it couldn’t get worse, Suntech is now desperate to land some financing to cover a convertible bond due in early 2013. Suntech has certainly had better days. 

• In more positive solar news, it looks like India’s making new moves in the solar space again. According to Tarun Kapoor, the joint secretary of the Ministry of New and Renewable Energy in India, India may soon auction about 30 percent of the solar projects it has planned to be online by 2017. This would double the nation’s solar capacity. In total, India is aiming for 20 full gigawatts of solar by 2022. Following India’s blackout last month, solar got a fresh coat of shine. Considering the country currently relies on coal to generate more than half of its electricity, and coal shortages have India on high alert, this isn’t surprising.

DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.

The post Two Weeks In Cleantech, 8-31-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel

August 15: First Solar (NASDAQ:FSLR) Moves to Thailand

In an effort to continue its steady expansion, First Solar (NASDAQ:FSLR) has set up a Thailand operating subsidy and has officially opened its Bangkok office.

The Thai subsidiary is charged with the responsibility of expanding FSLR’s market for utility-scale solar projects. Senior Manger of Business Development told reporters. . .

“The long-term energy fundamentals in Thailand are very favorable for a solar power solution to meet their growing energy needs, and we will continue to invest here as part of our strategy to develop sustainable, utility-scale solar markets.”

Yesterday, my colleague R.T. Jones commented on how non-China solar companies are competing against China’s solar dominance. This could be seen as an example of that. Although to assume China’s solar industry is also not sailing through rough seas is naïve.

In fact, a Reuters report that came out yesterday indicated that as solar panel prices continue to fall, China solar companies will continue to struggle with increasingly heavy debt loads. We’ve been saying this for almost two years now!

So what’s next?

Major consolidation.

Mark my words, although I remain extremely bullish on the long-term outlook for solar, we will not have much more than a dozen or so profitable solar companies operating globally after 2015.

August 16: Ford (NYSE:F) Ready to Dominate Electric Car Market

•     Ford (NYSE:F) announced yesterday that it now has more than 1,000 engineers working on vehicle electrification, with dozens more to be added next year. The company is also now doubling its battery-testing capabilities in hopes of accelerating its hybrid and electric vehicle development by 25 percent. The Focus Electric is Ford’s first all-electric offering for the masses. It’s actually a pretty sweet car, although like most electric cars, it is a bit pricey. To be honest, I think the company’s actually going to get a lot more traction from its C-Max, which is a crossover SUV that comes in both conventional hybrid and plug-in hybrid electric models. The former offers a pretty impressive 47 mpg, and the latter offers equally impressive fuel economy with a 20-mile all-electric range as well. Another reason I think Ford’s got a winner here is the price. The conventional hybrid model goes for about $26,000. Competitive with the Prius V (The Prius version of an SUV crossover), but offering a bit more room and luxury. And the electric model comes in at about $34,000. It does qualify for a $3,740 federal tax credit, which brings it in around the $30,000 mark. Not bad for a plug-in model, especially considering the roominess of the vehicle. I definitely think Ford’s going to crush it on the C-Max.
•     CX Solar Korea has announced it’s leading a group of investors that will pony up nearly $1 billion to build a massive solar farm in Pakistan. The $900 million project is set to begin with a 50 megawatt installation, with follow-on projects that’ll reach 300 megawatts by 2016. CX Solar is now in talks with panel suppliers. Since the company will be using both conventional crystalline silicon and thin film, it’ll be interesting to see if First Solar (NASDAQ:FSLR) gets a call about the latter. Although, as we reported earlier this year, Pakistan has been turning towards cheap Chinese solar panels to combat high electricity tariffs and dependence on diesel generators, which cost more to operate than solar. Pakistan has also been moving forward on the wind power front. Back in May, the Islamic Development Bank and the Asian Development Bank came to an agreement on a $133 million financing deal for two wind projects in that country.
•     A couple of years ago I read a report that showed China boasting massive growth in wind farm construction. The problem, however, was that many of these farms were not connected to the grid. And in fact, weren’t even close to being connected. Talk about a chicken and egg situation gone bad. But this morning, we learned that China’s wind power capacity actually linked to the grid has increased by 87 percent. This year, just over 50 gigawatts of wind were connected, thereby moving China closer to its goal of 100 gigawatts by 2015, and 200 gigawatts by 2020. Although few take China at its word these days, I do believe the Middle Kingdom isn’t going to just let massive groupings of turbines sit and rust. The nation is desperate for more power, and I have no doubt that in about eight years, there will be 200 gigawatts of wind power helping to keep the lights on in China.

August 17: Obama and Romney Slow Our Escape from OPEC

This is why I hate politics. . .

On the table is a plan to increase the Corporate Average Fuel Economy (CAFE) standard to 54.5 mpg by 2025.

Although automakers put up a stink early on, most have since signed on to get this done. However, the Obama administration is now dragging its feet due to “continued opposition.” Gee, I wonder who opposes making our vehicles more fuel efficient?

According to a spokeswoman for the National Highway Traffic Safety Administration, the rule is undergoing inter-agency review and the process is expected to be completed soon. And by soon, she means after the election. Because the truth is, the Obama administration doesn’t want to kick the GOP beehive any more than it has to before November.

Now It’s no secret that Mitt Romney opposes the future CAFE requirements. He claims this is an example of an over-reaching government, and that he would instead work with manufacturers to find ways to encourage fuel economy on the part of the consumer. What those “ways” are however, are still unknown. He said that trying to have the manufacturer push the product on the consumer – something the consumer doesn’t want – is not the right approach.

Yeah, I would love to meet the guy who actually has to work for a living complain about a vehicle that gets better gas mileage. If consumers don’t want vehicles that are fuel efficient, than why does every single car commercial on television clearly state the vehicle’s fuel economy?

Of course, I get it. It’s all politics. I highly doubt that Romney really wants to oppose something that allows us to displace enormous amounts of foreign oil. But you know the drill. It was proposed by this administration, so in an effort to secure votes, he must oppose it.

And that’s why I hate politics. It gets in the way of progress.

Now look, if you’re you’re a regular reader of these pages, you know I’m no shill for Obama either. Quite frankly, I have zero interest in what either side has to say during election time. It’s all empty rhetoric and bullshit designed to trick voters into believing that their guy will save us from decades upon decades of lies, deception and an extraordinarily unacceptable amount of fiscal irresponsibility.

But let’s be real about the CAFE issue.

At this point, no one is forcing automakers to do anything. They’ve signed on!

And the bottom line is that by increasing fuel economy standards to 54.4 mpg, American consumers will save $1.7 trillion, and we will be able to displace about 2.2 million barrels of oil per day. Or roughly half of what we currently import from OPEC.

That, my friends, should make this a national security issue, not a partisan one.DISCLOSURE: No positions

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.

The post First Solar Goes to Thailand; US Stays in OPEC’s Grasp: The Week In Cleantech, 8-17-2012 appeared first on Alternative Energy Stocks.

Jeff Siegel

August 1: Siemens (NYSE:SI) Lands Major Australian Wind Turbine Deal

• Yesterday morning, New Jersey’s Public Service Enterprise Group announced that it’s now looking to invest up to $833 million for an expansion of the the utility’s solar power programs. This investment seeks to facilitate the developing of an additional 233 megawatts of solar capacity. The expansion is expected to create about 300 direct jobs annually over the next five years.

• In 30 days, Mitsubishi Motors will launch its all-new Mirage global compact car in Japan. At a cost of between US$12,800 and US$16,500, the 3-cylinder vehicle offers a very competitive fuel economy of 64 mpg US. This exceeds Japan’s 2015 fuel economy standards by 20%.

• The forecast for German wind power has been raised after expansion in the first half was greater than expected. Beating estimates by about 200 megawatts (2,200 megawatts vs. 2,400 megawatts), first half installations expanded by 26 percent. Of course, only 45 megawatts of offshore wind was added in the first half, which came below estimates. The shortfall is primarily the result of connection delays. These connection delays are expected to result in Germany’s 10 gigawatt target to be reached later than expected – likely by 2020. Still, 10 gigawatts of offshore wind in less than eight years is nothing to trivialize.

• Siemens (NYSE:SI) has announced that it has secured its first contract to build a 270 megawatt wind farm in Australia. The new power plant is expected to be online by 2014, and when completed, will provide electricity for 180,000 homes.

• US firm RenuEn Corporation has just announced that it has secured a 50 megawatt solar project in Pakistan. This project will be managed by a foreign operating subsidiary, which is joining RenuEn upon closing of the acquisition. A 25-year power purchase agreement is in place, with the government of Pakistan being the power purchaser.

August 2: ABB (NYSE:ABB) Lands $55 Million Transmission Deal in Brazil

• ABB (NYSE:ABB) announced this morning that it has landed a $55 million substation and transmission infrastructure deal in Brazil. Brazil is actively building out its wind power capacity with plans to install 7 gigawatts over the next five years. This will be in addition to the 1.5 gigawatts currently installed. I’m bullish on ABB right now and think at current levels, the stock is undervalued.

• Frost & Sullivan has recently reported that the number of electric car charging stations in the U.S. could reach 4.1 million by 2017. Today there are about 10,000 publicly-available charging stations. If this isn’t monumental growth, I don’t what is. And it speaks volumes about where this industry is heading, despite what the partisan slaves and naysayers would like you to believe.

• For some of India’s rural poor, solar saved the day during those massive blackouts last week. This, according to David Biello from Scientific American who wrote, “some of the formerly energy poor – rural subcontinent – found themselves better off than their middle-class compatriots during the recent blackouts, thanks to village homes outfitted with photovoltaic panels. In fact, solar power helped keep some electric pumps supplying water for fields parched by an erratic monsoon this year.” It’s worth noting that India has plenty of reason to embrace solar. For one, it’s becoming harder and harder for India to secure coal supplies. As reported in the Economist, by 2017, domestic coal production in India will meet only 73% of demand. The country’s already spent $7 billion over the past six years acquiring outside coal pits in Australia and Africa. Now there are a lot of folks in India who rely on diesel-powered generators, too. But with higher diesel prices, it actually costs more to run those generators compared to solar. And of course, for a country that was ranked as having the world’s unhealthiest air pollution, according to a Yale study, a little extra solar is certainly going make breathing a lot easier.

August 6: Is First Solar (NASDAQ:FSLR) Moving to India?

• General Electric (NYSE:GE) announced today that it will be partnering with Enel Green Power (OTC:ENLAY) to provide about $156 million in common equity for one of Minnesota’s largest wind farms. As is no surprise, this wind farm will be using GE turbines. GE actually owns 51 percent of this 200 MW wind farm now under construction in southern Minnesota. When completed, it will help the state of Minnesota reach its 25 percent renewable energy goals by 2025. With this deal in place, GE’s total wind portfolio is now just shy of 10 full gigawatts.

• Looks like First Solar (NASDAQ:FSLR) may be considering manufacturing in India, according to a recent piece in The Hindu. During an earnings conference, First Solar CEO Jim Hughes said in regards to India, “Ultimately, if the kind of visible demand that we expect develops in that market, that is likely a market where we would look to put manufacturing in place.” We’ve discussed the rise of solar in India in the past, and continue to believe India could soon prove to be one of the most lucrative solar markets on the planet. You can read more about that here.

• To date, the U.S. military has ponied up for 168 road-capable plug-in electric cars. But according to an Air Force spokeswoman, more are on the way. Yes, while partisan slaves and dim-witted naysayers continue to attack the development of electric cars – you know, those things that help us displace an enormous amount of foreign oil and help bolster national security, the military remains quite bullish on electric cars.

• While the future may not be so bright for the wind energy production tax credit, wind power that is already installed in the United States continues to show its immense value. According to Xcel Energy (NYSE:XEL), Colorado’s largest utility, on April 15, nearly 57% of the electricity that was generated in the Centennial State came from wind power. Xcel has credited the record with new advances in technology, including an update of its weather forecasting ability and an upgrade of software the utility uses to control its wind farms and fossil fuel plants.

August 8: China Rescues A123 Systems (NASDAQ:AONE)

• A123 Systems (NASDAQ:AONE) has announced that it landed a $450 million financing deal with a Chinese auto parts maker. This infusion will likely help the company stay afloat at a time when it continues to bleed cash. As I’ve mentioned in the past, I’m a fan of the company, but I’m still not convinced that AONE can swim upstream against the reality of cost advantages boasted by foreign competitors. Still, today’s news catapulted the stock from yesterday’s close of $0.47 to almost $0.60 in pre-market. It’ll be interesting to see how the stock does today.

• In an effort to cut its $4 billion annual energy bill and to lessen the potential of blackouts, the Defense Department is working with developers to build solar and wind farms on 16 million acres of open land that currently surrounds military bases. According to a recent DoD study, the lands that surround military bases in Southern California alone could generate seven gigawatts of power. That’s the equivalent of seven nuclear reactors, or enough to power more than five million homes.

• Although sales of SUVs have fallen over the past few years, mostly due to the fact that it can cost well over $100 to fill one up, Americans still love these vehicles. It’s why smaller, crossover SUVs continue to sell. And to make sure the electric car segment doesn’t miss out on an opportunity to convert internal combustion lovers to electric, a number of automakers are electrifying SUVs. Toyota has its new RAV4 EV, which goes on sale this month, and Ford’s new C-Max Energi comes in both conventional hybrid and plug-in hybrid electric. The conventional hybrid model delivers a stellar 47 mpg and the electric model offers the highest electric-only speed of any plug-in hybrid on the road. So is this the new trend in vehicle design for SUVs? Brad Berman from Plugincars.com dives into thi

  The post Two Weeks In Cleantech: 8-11-2012 appeared first on Alternative Energy Stocks.

  ]]>