25 Ultimate Sustainable Energy Growth Stocks

Given the global economic instability, population trends, environmental, political and social challenges ahead; we are looking at a rapidly evolving requirement for the next ten years or more of increasing sustainable energy solutions.

Note the closing summary analysis, that provides details to these shifts coupled with the increasing price of oil from aging fields in the months and years ahead enabling the growth of sustainable energy sectors as supported by research data including from the EPA, DOE, and International Energy Agency, 2009.

Based on performance research consider adding some of the innovative companies outlined below that are focused in the high growth sustainable energy sectors likely to generate long-term superior returns.

Energy Development Corporation ((EDC)) is the Philippines' largest producer of geothermal power and the acknowledged global leader in wet steam field technology. It is primarily engaged in the exploration, development, and optimization of geothermal steam fields. EDC has also acquired a 60% equity stake in First Gen Hydro Power Corporation (FG Hydro) last November 17, 2008; EDC now finds itself also involved in the operation of hydro power plants. FG Hydro‟s PMHEPP injects electricity into the Luzon grid to service the consumption of its customers which include the Wholesale Electricity Spot Market (WESM) and Transition Supply Contract (TSC) clients.

China High Speed Transmission Equipment Group Co. Ltd. (CHSTF.PK) enjoys 90% market share of China wind transmission equipment, and its clients include GE Energy, Repower, Nordex, Goldwind Science and Technology Co., Ltd., Dongfang Steam Turbine Works, Shanghai Electric Group Co., Ltd. These companies are all leading wind turbine manufacturers at home and abroad.

SunTech Power Holdings Co. Ltd. (STP) is one of the largest solar module providers in the world. Suntech has an established track record of delivering consistently high quality solar solutions to valued customers. It provides some of the most technologically advanced and reliable solar energy products worldwide.

Vestas Wind Systems (VWDRY.PK) has a 20 per cent market share, and 38,000 wind turbines installed. Vestas is the world's leading supplier of wind power solutions. The company is looking at solid growth for the next 5 years.

EDP Group (EDP) is a leading energy solutions operator developing the areas of generation, supply and distribution of electricity and natural gas also dedicated to renewable resources mainly focused in Portugal, Spain and Brazil. EDP recently announced the acquisition of Texas based Horizon Wind for a price of over $2 billion.

Gamesa Corporacion Technologica (GCTAF.PK) is a leader in the design, manufacture, distribution and installation of sustainable energy solutions including wind energy. Posted Q1 2009, a rise in operating profits of 36 per cent.

EDF Energies Nouvelles S.A. (EDFEY.PK) is a leader in producing green electricity and the development of alternative energy including wind, solar, biomass, and hydropower.

Iberdrola Renewables (IRVSF.PK) is a leader in optimized energy solutions tailored to meet the needs of wholesale and large commercial and industrial customers. It has a portfolio of gas and power assets, 24-hour energy management and scheduling capabilities allow us to deliver products and services that help customers manage risks and uncertainty in the natural gas and power industries while fulfilling short- or long-term energy requirements.

Acciona S.A. (ACXIF.PK) is a leader in infrastructure management, services and renewable energy. The company is focused in Infrastructure, Real Estate, Energy, Water, Transportation and Urban Services.

Hansen Transmissions International (HSNTF.PK) an established global wind turbine and industrial gearbox designer, manufacturer and supplier, with a significant position in the wind turbine gearbox market. Hansen Transmissions supplies drive solutions for a wide range of industrial applications in industries such as the chemicals, energy, material handling, environmental, extraction, pulp and paper, steel and metal, food and beverage, and construction, , including such areas as bucket elevators, car crushers, cement kilns, conveyor systems, industrial mixers, paper mills, pulpers, and water treatment systems like aerator drives, screw pump drives and brush aerator drives for waste water treatment plants.

Renewable Energy Corporation (RNWEY.PK) is considered a leader in solar technologies. REC has business activities organized into three divisions: REC Silicon, REC Wafer and REC Solar. REC Silicon produces silicon materials mainly for the PV industry, but also for a limited number of electronics customers; REC Wafer produces multi- and monocrystalline wafers for the PV industry, while REC Solar produces solar cells and solar modules.

SMA Solar Technology AG (SMTGF.PK) with its headquarters in Niestetal, Germany, and with eight international subsidiaries on four continents, develops and sells solar inverters, central components of every solar power system. The SMA Group has more than 2,500 employees currently and generated approximately 680 million euros in sales in 2008. SMA has been setting new industry standards in decentralized and renewable energy supply technology for more than 25 years and has made a major contribution to the development of solar technology. SMA for example has set a new world record for solar inverters with an efficiency of 98%. SMA remains profitable and financially sound.

SolarWorld AG (SRWRF.PK) is one of the largest solar energy businesses in the world. SolarWorld’s family of companies are dedicated exclusively to the business of solar energy, combining all stages of the solar photovoltaic (PV) value chain, from the raw material silicon to turn-key solar power plants. SolarWorld operates production facilities in the USA and in Germany as well as sales offices around the world.

First Solar Inc. (FSLR) manufactures solar modules with an advanced thin film semiconductor process and provides comprehensive photovoltaic (PV) solutions that significantly reduce solar electricity costs. First Solar manages the life cycle of its modules in a perpetual cycle—from raw material sourcing through end-of-life collection and recycling. Price competitive within the solar sector.

SunPower Corporation (SPWRA) has signed an agreement with PG&E to build the world’s largest – 250 MW – photovoltaic (PV) power plant, set to begin energy delivery in 2010. Florida Power & Light Co. also contracted with the company to provide 25 MW of electricity in 2009, and another 10 MW by the end of 2010. SunPower provides high-energy solar systems for the world’s business and technology leaders, governmental agencies, retailers and other entities, along with the highest-efficiency solar panels for international residential customers. And, in addition to its U.S. bases of operation, SunPower maintains offices in Canada, Germany, Italy, Spain, Switzerland as well as Singapore, Korea, and Australia.

Q-Cells S.E. (QCSLF.PK) has a core business of development, manufacture and marketing of powerful solar cells made of monocrystalline and multicrystalline silicon. It also expands thin-film technologies in via subsidiary companies. It advances photovoltaics as a sustainable technology that is compatible with global environment.

MEMC Electronic Materials Inc. (WFR) is a global leader in the manufacture and sale of wafers and related intermediate products to the semiconductor and solar industries. MEMC has been a pioneer in the design and development of wafer technologies since 1959. With R&D and manufacturing facilities in the U.S., Europe and Asia, MEMC enables the next generation of high performance semiconductor devices and solar cells. Recently, the company reported significant loss but has potential long-term.

Sharp Corporation (SHCAY.PK) has vision for a clean, solar-powered world by developing solar systems for a broad range of applications. From satellites, telecommunications, water pumps, remote houses and safety signals, to grid-tied homes, businesses and large solar farms, Sharp has manufactured a variety of products that harvest abundant, inexhaustible solar energy - all to deliver electricity. Forty-five years and countless innovations later, it’s a global leader in solar, providing the systems to power more homes and businesses than any other solar manufacturer in the world.

Energy Conversion Devices Inc. (ENER) manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. Distributed globally under the UNI-SOLAR brand, the company's products are ideally suited for cost-effective solutions for roofing applications because they are lightweight, durable, flexible, can be integrated directly with building materials, and generate more energy in real-world conditions. ECD also pioneers other alternative technologies, including a new type of nonvolatile digital memory technology that is significantly faster and less expensive, ideal for use in a variety of applications, including cell phones, digital cameras and personal computers. Gross margins still look good here despite economic challenges.

Novozymes A/S (NVZMF.PK) enables biotechnology for improving the use of resources in more than 30 industries around the world. The biofuel industry is one of them. Novozymes offers what is likely the most efficient technology platform to further improve the sustainability performance of bioethanol production. In 2010 its enzymes will make it possible to produce second-generation bioethanol that converts waste and agricultural residues into energy. This will be a break through development in the search for new renewable energy sources. Novozymes Biopharma also develops commercially exploit albufuse, albumin fusion technology, in line with its business strategy. Albufuse is the term to describe the molecular fusion of albumin to protein drug candidates, a process resulting in significantly greater circulatory half-life and bioavailability. This technology may give a number of key patient benefits such as less frequent dosage or fewer side effects from injections. Solid management with decent long term potential growth.

Itron Inc. (ITRI) is a leading technology provider to the global energy and water industries. The company is the world’s leading provider of intelligent metering, data collection and utility software solutions, with nearly 8,000 utilities worldwide relying on our technology to optimize the delivery and use of energy and water. Its products include electricity, gas, water and heat meters, data collection and communication systems, including automated meter reading and advanced metering infrastructure; meter data management and related software applications; as well as project management, installation, and consulting services.

International Rectifier Corporation (IRF) is a pioneer and world leader in advanced power management technology, from digital, analog and mixed-signal ICs to advanced circuit devices, power systems and components. The world's leading manufacturers of computers, appliances, automobiles, consumer electronics and defense systems rely on IR technology to drive the performance and efficiency of their products. Today, power management technology plays a more important role than ever in saving the world's dwindling energy reserves while tackling tough technology roadblocks. Margins still look good but the recent loss was disappointing. Strong technologies and product lines.

Cree Inc. (CREE) is a market-leading innovator and manufacturer of semiconductors that enhance the value of LED solid-state lighting, power and communications products by significantly increasing their energy performance. The key to Cree’s market advantage is unrivaled materials expertise in silicon carbide with gallium nitride to deliver RF chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products. Cree drives increased Return on Energy solutions into multiple applications including exciting alternatives in brighter and more-tunable LED light for general illumination, backlighting for more-vivid displays, optimized power management for high-current, switch-mode power supplies and variable-speed motors, and more-effective wireless infrastructure for data and voice communications. Cree customers range from innovative lighting fixtures, electronics and auto makers to defense-related federal agencies. The company and the LED sector are promising for long term growth.

Covanta Holdings Corporation (CVA) is the world’s largest supplier of Energy from Waste “EfW”. It operates 38 EfW plants worldwide and processes in excess of 14 million tons of municipal waste each year. Covanta also contracts for the development of a 600,000 tons-per-year Energy from Waste facility in Poolbeg, Dublin. The Dublin project is being developed and will be owned by Dublin Waste to Energy Limited; a joint venture between Covanta and DONG Energy Generation A/S.

Abengoa S.A's (ABGOF.PK) primary objective is to become a reference as a world leader in the production of biofuels and develop innovative technological solutions that contribute to the sustainability of the transportation sector and in the production of bio-based chemicals. Its seeks to become a reference as a world leader in the production of biofuels, and the development of innovative technological solutions that contribute to the sustainability of the transportation sector and in the production of bio-based chemicals.

General Electric Energy (GE) is a diverse global company assisting with the mining of natural resources to the distribution of energy to the consumer, proven expertise provides an expanding portfolio of innovative products including wind, solar, alternative fuels and water technologies, services and integrated solutions. GE provides the technology and the ability for customers to produce energy more reliably and efficiently, more cost effectively and with greater environmental awareness.

Johnson Controls Inc. (JCI) provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy including solar use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise.

Chevron Energy Solutions (CVX) is one of the California Solar Initiative's most active installers, with 87 large-scale PV projects at some stage in the program. Chevron is a global leader in energy.

Lockheed Martin (LMT) has taken its expertise designing PV arrays for space applications to the utility-scale market, partnering with Starwood Energy to offer packaged engineering, procurement, and construction “EPC” and structured financing deals.

Fortum Oyj (FOJCF.PK) is a leading energy company focusing on the Nordic countries, Russia and the Baltic Rim area. Our activities cover the generation, distribution and sale of electricity and heat and the operation and maintenance of power plants. Fortum has a board focus within the wind, nuclear, hydro and heat energy production sectors.

Summary Analysis

The U.S. economy will likely experience stagnate to low growth, as households respond to depreciating real and financial assets and tightening financial conditions.

The U.S. faces significant hurdles including the trillions of dollars in debt burdens as 78 million baby boomers retire leaving a reduced labor force tax base, poor quality of public education (ranking 25^th out of 30 industrialized nations, National Center for Educational Statistics Comparative Indicators of Education in the United States and Other G-8 Countries: 2009) and high wage costs in U.S. labor markets relative to emerging countries.

The global sustainable energy companies listed above show promising long term returns. Sustainable clean energy is rapidly becoming more cost competitive versus oil, particularly as China, India and Brazil's demands for more energy increases at a rate of about 1.8% per year (45% increase 2006 – 2030) due to population (est. 6% annual GDP growth) driving up the price of oil for the next twenty years or more.

The need for sustainable energy alternatives is further pronounced as the observed average annual oil field production rate continues to decline worldwide by 6.7% reaching 8.6% by 2030 for fields that have passed their production peak. As the need to replace aging oilfields continues to accelerate, the difficultly and high cost to find new oil sources also increases the market price making sustainable energy resources more competitive, according to research including by the International Energy Agency, and the International Monetary Fund, 2009.

Disclosure: At the time of writing this article the author held no significant direct interest in the companies listed.

Comments

[ECD Fan:]

Mr. Rickman, are you on drugs? You say that "gross margins still look good [for ENER] despite economic challenges." Did you even try to understand what this company does (rather than just copying and pasting management's description)? How can its growth be sustainable or its gross margin be "good," when the company cannot sell its product at positive gross margins, if it wants to be competitive?

Read here: ecdfan.blogspot.com/20...

Jun 14 10:13 PM

[toobad41:]

I can't believe any company that is on the pink sheet can be a leader in anything! Who are they trying to kid. Something is very wrong with a company that is on the dung pile. Penny stocks are the trash of the equities markets. Ultimate Sustainable Energy Stocks? Those companies are fighting for their lives just to stay solvent let alone be profitable.

Jun 15 08:53 AM

[john s. gordon:]

an excellent list; thanks.
> jack

Jun 15 08:55 AM

[pftittl:]

All look like a risk to me, but undoubtedly some will break out the way Microsoft and APPL once did.

Jun 15 10:09 AM

[Doc 224899:]

Better your money than mine.

Oh, I see....you don't actually own any significant interests in any of this stuff.

Jun 15 02:26 PM

[Nanacat:]

Thank you, James. I will add these to my watch list. It seems to me that alternative energy is inevitable at some time in the future and I am glad to see so many companies involved in it. And, folks, he did say long term growth.

Jun 15 03:44 PM

[Danny Furman:]

It's obvious from the author's disclosure that he's not suggesting building a portfolio around these stocks, but these are leaders in industries that the future has little choice but to embrace. Alternative energy is volatile/risky business and these are fundamentally more solid than most of what's out there. I will do some research and likely buy 1-2 of the stocks discussed here as this silly market pulls back.

Jun 16 12:33 AM

[manuel:]

i follow the German market, German q cells is trading at P/E 10 vs first solar 30, and q cells P/B is around 1, much less than first solar, q cells and solarworld have peg ratios of 0,50, q cells is down 90% from its high, much more than peer group

Jun 16 02:01 PM

[E.D. Hart:]

The sustainable energy bridge fuel (between todays oil dependence and the distant futures greater reliance on renewables) is natural gas. And natural gas companies are profitable at these low prices. I dont see the need to put much too capital into risky strartups when companies that will be producing energy for the next 25-50 years are profitable today.

Long: xto, dvn, upl, eca

Jun 16 11:39 PM

[SlipperyWing:]

Be careful with criticizing pink sheet stocks with such a broad brush. A few companies, like Vestas are big European companies that are listed on the pink sheets for U.S. market exposure.

That doesn't lend credence to buying shares, but don't assume that a pink sheet listing means an empty balance sheet with a fluff business plan.

I will say that I've found that pink sheet stocks tend to be manipulated more than others, but that's just my opinion and experience.

I will say that this post is little more than a plagiarized business summary with little insight to the individual companies themselves.

Jun 20 09:19 AM

[SlipperyWing:]

Be careful with criticizing pink sheet stocks with such a broad brush. A few companies, like Vestas are big European companies that are listed on the pink sheets for U.S. market exposure.

That doesn't lend credence to buying shares, but don't assume that a pink sheet listing means an empty balance sheet with a fluff business plan.

I will say that I've found that pink sheet stocks tend to be manipulated more than others, but that's just my opinion and experience.

I will say that this post is little more than a plagiarized business summary with little insight to the individual companies themselves.

Jun 20 09:20 AM

[Harry L:]

Thanx for the long list of players, some of which will surely emerge as the future of alternative energy sources. In the past, the oil companies have succeeded in crushing any threat to their dominance, but that is because the USA, which as you know is controlled by politicians, who are in turn controlled by big $$, have called the shots.

Due to the shrinking world (via internet communications) and final recognition that we really do have a serious global warming problem, the cat is out of the bag and GLOBAL interests will propel these emerging industries into our daily way of life.

But make no mistake about it, there are still many headwinds in the way, led by the big fossil fuel based interests and the puppet politicians who must bless the Green industry implementation in the USA. Thus, dumping gobs of money into apparent giants like FSLR at this stage of the game is premature. At best, we are 5 to 10 years away from seeing any significant dent in our dependency on fossil fuels.

So, I for one look to pick a few promising plays as "long" only. In the meantime, look to the US political system to gauge which technologies (wind, solar, geothermal, alternative fuels, nukes) will be implemented with some degree of serious urgency. Right now, I have been surprised that wind seems to be receiving a lot of attention. I would have put my money on solar.

And by all means, check the weather changes.

Jun 25 02:52 PM

[einstein p ...:]

RTK is worth a look. In addition to a fertilizer division, they have just picked up a contract from the US Air Force for jet fuel. If I was going to buy a spec stock, this one has a lot going for it. Most likely gets bought by a larger concern or has the ability to license their patents to many larger concerns. Interesting company that has been in the game before it was fashionable.

Jul 01 10:02 PM

[optionsgirl:]

Check out Syntroleum. (SYNM)
www.syntroleum.com/mai...

Sep 27 04:30 AM

[ppeer:]

On equitycatwalk.com I have published 3 models: Vestas, NORDEX AG and a comparison of the two companies.
There seems to be more value in Vestas.

best regards
Peter

Sep 29 11:07 AM

[Deepfryer999:]

This comment is way off-base. Just look at the top-10 wind turbine manufacturers in the world:

en.wikipedia.org/wiki/...

Many of them, including #1 on the list (Vestas), are listed on the pink-sheets. You may want to take a second look at many of these companies.


On Jun 15 08:53 AM toobad41 wrote:

> I can't believe any company that is on the pink sheet can be a leader
> in anything! Who are they trying to kid. Something is very wrong
> with a company that is on the dung pile. Penny stocks are the trash
> of the equities markets. Ultimate Sustainable Energy Stocks? Those
> companies are fighting for their lives just to stay solvent let alone
> be profitable.

Oct 19 04:36 PM