Energy Efficiency

Most studies show that the greatest potential for reducing our carbon emissions comes from energy efficiency technologies.  And, unlike many renewable energy technologies, energy efficiency is almost always less expensive than developing new energy sources, so energy efficiency businesses can be profitable now, and still have a large potential upside which will come with regulatory efforts to reduce our carbon emissions and rising energy prices. Unfortunately, the reason this free lunch exists is because selling and implementing energy efficiency technologies isn't easy.  It's also much more difficult to find companies that profit from energy efficiency than those that produce...

Tom Konrad CFA Geothermal heat pump diagram via Bigstock A couple weeks ago, I compared the efficiency of the two most advanced geothermal heat pumps (GHPs) recently launched by Waterfurnace Renewable Energy (TSX:WFI, OTC:WFIFF) and Climatemaster, as division of LSB Industries (NYSE:LXU).  Like most things in life, it turns out that heat pump efficiency is a lot more complicated than just comparing a couple numbers. Since I concluded that Waterfurnace’s 7  Series heat pumps were slightly more efficient than Climatemaster’s Trilogy 40 pumps, one of Climatemaster’s district managers pointed me...

by Debra Fiakas CFA Shares of Appliance Recycling Centers of America (ARCI:  Nasdaq) has trended downward over the last year, despite some strong fundamental progress in the company’s position the recycling sector.  The corporate name tells at least part of the company’s story.  Besides recycling appliances such as washers, dryers and refridgerators, ARC also sells new and like-new appliances right out of the box.  The company has eighteen stores branded ApplianceSmart across the country.  Services to electric utilities and other energy companies related to energy efficiency programs provide yet another revenue source. In the twelve months ending March 2017, ARC reported...

Tom Konrad CFA On March 22, the Conservative Canadian federal government released its proposed 2011 budget. The biggest news about the budget is not what is in it, but the fact that it is likely to lead to a no-confidence motion in Parliament, and bring about a new election.  One provision of the conservative budget is the C$400 million ecoEnergy Retrofit program was included in the budget as a sop to lure support from the New Democrat party, but proved insufficient to gain their support. Canadian insulation manufacturers hailed the inclusion of the home insulation...

Part 1: Introduction In a financial world where there seems to be little hope, I see a bright spot in energy efficiency.  This is because energy efficiency improvements pay for themselves in a very short time, in addition to being the best thing we can do for energy security and reducing greenhouse gas emissions.  Given the current financial crisis, I also believe that investors should focus on companies with strong balance sheets, which will be able to internally fund their investment needs for the next couple years. While I was making the above case, Energy Tech Stocks introduced their...

Portfolio theory can lend insights into which carbon abatement strategies policymakers should pursue.  If policymakers listen, what will it mean for green investors? Tom Konrad, Ph.D., CFA Good Info, Not Enough Analysis I've now read most of my review copy of Investment Opportunities for a Low Carbon World.  The quality of the information is generally excellent, as Charles has described in his reviews of the Wind and Solar and Efficiency and Geothermal chapters.  As a resource on the state of Cleantech industries, it's generally excellent.  As an investing resource, however, it leaves something to be desired.  Each chapter is written...

by Marc Gunther.  So you remember CFLs, right? The curlicue bulbs? The time they took to go on? The harsh light? Despite their drawbacks, compact fluorescents have sold fairly well in the US. They save customers money. Utilities promoted and subsidized CFLs, particularly in California. Walmart (NYSE:WMT) pledged to sell 100 million of them. Time magazine put one on the cover. By 2012, CFLs represented 27 percent of the bulbs installed in the over 3 billion medium screw-based sockets in the United States, according to a Navigant study quoted by NRDC. Other researchers put the number lower, about 20 percent,...

by Tom Konrad Last February, I wrote " I expect the Fed-induced reprieve to be fairly short lived, ten solid companies I'd be happy to buy more of if and when the bottom really falls out of the market."  When I wrote those words, the Dow Jones Industrial Average was over 12,700.  Now, it's around 8,500, and I doubt anyone remembers the "Fed-induced reprieve" I was referring to.  The "bottom fell out" in September and October.    On October 12, with the DJIA at 8451, I wrote "I don’t know where the market will go from here, but I...

With the resignation of four non-independent directors and reduction in the size of LSB’s board, the company has managed to appear to be making a step towards reform while making it harder for the activist fund to gain influence. Gaining influence in a tightly controlled family firm is never easy. It looks like the task just got significantly harder for Engine Capital in its quest to unlock shareholder value at LSB.

by Debra Fiakas CFA Last week Lime Energy (LIME:  Nasdaq) reported exceptional sales growth in the quarter ending June 2015.  Revenue from the company’s energy efficiency solutions was $32 million, increasing and impressive 135% compared to a year ago.  Sales were boosted beginning by the March 2015 acquisition of EnerPath, a provider of software solutions for utility energy efficiency.  However, several of the company’s utility programs were expanded and that drove organic sales as well. Is it time to give Lime some new respect? In the renewable energy sector, efficiency programs are often overlooked...

The DOE's Office of Energy Efficiency and Renewable Energy (EERE) has launched a new Web site that lists opportunities for financial assistance. In fiscal year 2004 alone, EERE awarded approximately $506 million in financial assistance. So if your thinking of getting into the Alternative Energy business, or have an idea that only needs some financial backing, you may want to take a look at the EERE Financial Opportunities Web site and here is a listing of the current related solicitations.

Information Empowers Browsing AltEnergyStocks new CleanTech News page (I find it a good way to discover quality stories I wouldn't have come across otherwise) I came across one of the best articles I've seen yet on Smart Metering.  Smart metering is one of the biggest win-wins available when it comes to reducing our carbon footprint by providing real time feedback on our electricity use. It allows us to see how we are wasting electricity and choose to take action.  When Woodstock Hydo's customers were given this information (without any other encouragement to save electricity), their average usage fell by...

John Petersen In 2009, the world produced some 13.2 billion metric tons of hydrocarbons, or about 4,200 pounds for every man, woman and child on the planet. Burning those hydrocarbons poured roughly 31.3 billion metric tons of CO2 into our atmosphere. The basic premise of alternative energy is that widespread deployments of wind turbines, solar panels and electric vehicles will slash hydrocarbon consumption, reduce CO2 emissions and give us a cleaner, greener and healthier planet. That premise, however, is fatally flawed because our planet cannot produce enough non-ferrous industrial metals to make a meaningful difference and the prices...

Bill Paul For my money, energy efficiency (aka, the “fifth fuel”) is the best alternative energy sector for investors because it’s primarily about saving money, only secondarily about saving the planet. The energy services industry reportedly has grown by more than 20% per year every year since 2004 and efficiency service providers now pull in an estimated $5.6 billion a year just on U.S. commercial buildings. Pike Research says there is a reservoir of untapped projects worth $400 billion. “There’s this huge untapped potential” for energy efficiency, a U.S. Environmental Protection Agency spokesperson was recently quoted as saying....

by Debra Fiakas CFA Investors who in the small-cap sector are familiar with the profile:  a company with a great invention that ends up with a business narrowly-focused on a particular market or customer group.  If it is a public company, the stock price is equally thin  -  if it trades at all.  Energy Recovery (ERII:  Nasdaq) is one of those slender stocks.   Over the last year ERII has traded in a relatively tight range between $3.50 at the high point and $1.55 on the low side.  The stock is seemingly stranded today 29.4% off the...