Posted: For the Week of September 13 – 19, 2009
Editor’s Note: In keeping with its policy of being solely a news source, this EnergyTechStocks.com article is presented for information purposes only.
Having recently discussed investment opportunities among Japanese alternative energy firms (See To Make $$ in Alternative Energy, US Investors Might Want to Build Their Own Japanese Stock Portfolio), as well as the potential to make money by investing in firms that will need to connect renewable energy sources to the grid (See Alternative Energy Has A ‘Missing Link’ – Investors Who Find It Stand to Make $$), here’s an article about three more speculative energy plays that feel like they might just take off. (Then again, they might not.)
The first is Acorn Energy Inc. (Symbol: AFCN). As a holding company, Acorn has always been a tougher read for investors than, say, a solar or wind development firm. In addition, probably its key unit, CoaLogix, is involved with coal, which is an automatic turnoff for some green investors. But CoaLogix is in the business of cost-effectively helping coal-plant owners reduce nitrogen oxide (NOx) emissions. Last week Acorn shares got a bump after CoaLogix announced an expansion of manufacturing facilities. With the Obama administration about to put coal in its crosshairs as part of the debate over cap-and-trade, there’s reason to think Acorn’s upward momentum could last a while longer.
Another outfit whose stock has been rising lately but may not yet be near the top is British-based BGlobal plc (Symbol BGBL.L). According to a September 4 Reuters article out of London, “Companies that help people easily improve the energy efficiency of homes and offices are also gaining steam, such as BGBL, a provider of household smart meters giving data on energy use that has seen its shares double in value since the start of the year.” While it can be argued that BGlobal shares have already taken off, it can also be argued that they’ve got plenty of room to run, given the British government’s goal to get a smart meter into every home over the next decade or so. Moreover, as a new report by McKinsey & Co. recently concluded, efficiency has the potential to save more than $1 trillion in energy costs by 2020 on an investment of approximately $150 billion. While McKinsey was only talking the U.S., smart meter-based efficiency clearly has the potential to be a “killer app” in Britain, too.
The last company is pink-sheeter W2 Energy Inc. (Symbol WTWO). Headquartered in Toronto, W2 Energy is by far the most speculative of the three companies mentioned in this article. The self-described developer of green energy said in a recent press release that its “facilities will turn algae into syngas and then make diesel from the syngas without having to make biodiesel. The elimination of the step which produces biodiesel substantially reduces the end cost of the diesel.” The company said in the same release that it would get a royalty from each barrel of diesel produced with its process, and indicated that “several” parties are interested in discussing possible commitments.