The Increasing Ubiquity of Cleantech

by Richard T. Stuebi

I have subscribed to Forbes for over a decade because, unlike many other popular business journals, it seems to have a genuine voice — even if I sometimes disagree with it.

On a plane flight from Cleveland to L.A. last Thursday night, I read the March 10, 2008 issue, and was amazed at how pervasive cleantech has become — even in its stoutly conservative pages:

It was the SKF ad that really floored me, making me take notice just how ubiquitous cleantech is truly becoming. I’ve never seen SFK advertise anywhere before. Just which decision-makers is SKF trying to reach with this placement in a mass-market magazine?

Cleantech is seemingly everywhere. True, some of it may be “greenwash”, but a lot of it is real, and it is growing.

Then I went back to reading the magazine, and realized we still have a ways to go: on p. 19, Steve Forbes writes yet another editorial continuing to stoutly deny climate change. I laugh and shake my head: some things never change.

Maybe Mr. Forbes should take better note of what the major corporations showing up in the pages of his magazine are actually doing to make money. After all, isn’t Forbes the paragon of capitalism? If companies are rushing to cleantech in droves, shouldn’t Forbes take heed of what the market is leading these companies to do to increase their profitable growth?

Richard T. Stuebi is the BP Fellow for Energy and Environmental Advancement at The Cleveland Foundation, and is also the Founder and President of NextWave Energy, Inc.

The week in sustainable energy stocks….

By Mark Henwood

Neal says “keep going”. So let’s start with the big picture.

Stocks were down – S&P, EAFA, emerging markets. Commodities advanced. The broad based ETN tracking the DJ AIG commodity index (DJP) increased 3.1% for the week. This was the week of oil history. Our sustainable energy indices were mixed with one, our biggest, declining and three advancing.

The Solar index suffered another large decline dropping 5.2% bringing the YTD decline for the sector to –38.9%. Solarfun Power Holdings Co. Ltd (SOLF) -16% and JA Solar Holdings Co (JASO) -13.9% led the decline after an analyst downgrade prompted by declining margins and weaker demand. With 25 stocks declining versus 8 advances, these concerns must be widely held.

In Biofuels our index advanced 1.8% led by an impressive 52.7% increase, in US dollars, for Basil Ecodiesel (ECOD3.SA). Despite Basil Ecodiesel being the largest biodiesel producer in Brazil, none of our usual news sources reported any developments to explain the sharp increase. Aventine (AVR) continued downward off another 7.3% in the wake of its liquidity issues, despite S&P leaving Aventine’s rating unchanged.

In the Renewable Electricity sector our index advanced 1.8% with 12 stocks advancing and 7 declining. Our scan of the news showed a series of normal announcements typical of an industry with some traction. The index results this week, moving counter to broad markets, are not surprising given the index’s 100 day beta of only .3.

Fuel Cells had a strong week with the index increasing 7.8%. The increase was due in large part to the 44.6% gain for Ceramic Fuel Cells Ltd. (CFU.L) Ceramic reported it was constructing a manufacturing plant in Heinsberg, Germany and a substantial order for 50,000 2 kW micro CHP units from NUON. If these units are able operate reliability at a reasonable cost this could be an important breakthrough in a significant market targeted by a number of fuel cell companies.

What did I learn this week? Market developments reinforced the highly “leveraged” nature of solar stock prices. High growth expectations result in high volatility. I also realized I need better information sources for some of the lesser developed markets like Brazil. These are important investment centers and I’ll be looking for improved resources. We also saw investors are carefully looking for the key breakthrough. Ceramic is now center stage.

Mark is the founder of Camino Energy, a information provider specializing in globally traded sustainable energy stocks. He also is an investor in sustainable energy stocks.