Jeff Siegel - Angel Publishing

GreenBeat 2009

Welcome to the Green Chip Review Weekend Edition — our insights from the week in everything alternative and cleantech, as well as links to our most-read Green Chip Review and sister publication articles.

This week, Nick is in San Francisco attending GreenBeat 2009, a conference from which he'll return with plenty of insight and commentary on the smart grid, energy efficiency, and the future of green policy.

GreenBeat 2009 brings together the nation's 500 leading entrepreneurs, investors, utility and technology executives, policymakers, and press to affect an accelerated development of a leaner, more efficient electrical grid.

The conference, which features the likes of Al Gore, John Doerr of Kleiner Perkins, and industry leaders from Cisco, Tendril, and PG&E, is highlighting new technologies and exploring the opportunities afforded by the stimulus package.

You'll get the inside scoop as soon as Nick returns to Baltimore.

As always, in case you missed any of the news from the week, you can catch up on our most-read Green Chip articles and those from our sister publications below.

Enjoy the weekend,

Jeff Siegel
Publisher, Green Chip Stocks

There's only one reason President Obama is forking over billions for renewable energy.

And it's making insiders an absolute fortune!

Click here to find out what's really behind the push for renewable energy.

Suntech Solar Arizona: Suntech Chooses Arizona for First U.S. Manufacturing Plant
Green Chip's Jeff Siegel comments on Suntech's first U.S. manufacturing plant, which will be located in Arizona and come in at 30 megawatts.

Investing in Smart Meter Companies: Giving Up the Electricity Answering Machine
Editor Nick Hodge discusses smart meter companies before turning to the next areas of interest for smart grid profits.

The Industry Set to Rule the 21st Century: World's Economic Powerhouses Prepare to Cash in with Cleantech
Green Chip talks about the COP-15 Summit, taking place in just a few weeks... corporate giants, high-ranking officials, and powerful politicians will meet in Denmark to discuss the future of this sector. Find out exactly how you can gain a profitable foothold in a market that knows no borders.

Green Building Jobs: The Truth About Green Jobs
Green Chip Editor Jeff Siegel discusses the latest data on green job creation.

The Green Millionaire Infomercial: The Truth Behind this "Green" Media Scam
Editor Sam Hopkins exposes the truth behind the Green Millionaire e-book promoted on the internet and television.

A Tiny Chinese Battery Company: What This Still-Little-Known Outfit Means for the World's Fastest-Growing Car Market
Imagine investing in Ford, before the Model T. . . Volkswagen, before the Bug. . . or Toyota, before the Camry. . . Multiply this investment by a factor of 10 — that's what's going on in China right now. Green Chip reveals the battery company that you don't want to be last to know about.

What Peak Oil Can Do for Climate Change: Follow the Yellow Brick Road
Green Chip Editor Chris Nelder offers some insights from the peak oil study that should inform climate policy.

China Wind Turbines

A few weeks ago, I told you that the Chinese had marched into the Lone Star State with $1.5 billion for a 600+ megawatt wind farm.

Then, a few days later, I told you that Senator Charles Schumer (D-N.Y.) wanted the Obama administration to reject an expected request for stimulus funding for this particular wind project because it could end up generating Chinese jobs - not U.S. jobs. According to the Senator, if approved, the funds would be used to buy turbines and other components made in a Chinese plant.

Well, yesterday we found out that the turbine manufacturer for this project, A-Power Energy Systems, is now going to build a turbine production facility in the U.S.

Expected to employ about 1,000 U.S. workers, the new plant will produce more than 1,000 megawatts per year.

I realize there will still be some folks upset over the fact that a U.S. turbine manufacturer is not being used for this project. But if the Chinese are willing to come here and do something we could've started doing years ago - so be it.

That being said, it should also be noted that according to Energy Secretary Steven Chu, companies that have supplied turbines to funded farms had U.S. plants and the farms are in the U.S. - thereby creating local installation jobs and tax revenue. He also cited an industry statistic that indicated 53% of the value of turbine parts installed under the stimulus program were American-made.

Jeff

Green Building Jobs

I'm not typically one to debate the merits of green jobs because I see the value of green job creation every single day.

Sure, there are a number of studies out there that question the validity of some green jobs or seek to find a more precise definition of what a green job is. And this is all relevant stuff.

But there are also studies that I have to call out as being nothing more than politically-charged rhetoric.

Like the "7 Myths About Green Jobs" study that came out earlier this year.

I won't get into the nuts and bolts, but despite what seemed like an honest approach to a valid question: How do special interest groups calculate how many green jobs new energy policies would create? I quickly found myself reading what hinted at some questionable intentions hiding behind the guise of academic research.

I agree completely with the notion that an honest examination of methodologies used to calculate these green jobs is important.

But the authors of this study lost me when they stated that ". . . green job estimates often include huge numbers of clerical, bureaucratic and administrative positions that do not produce goods or serves for consumption; and that problematic assumptions are made about economic predictions, prices and technology advancements leading some to ultimately favor mandates over free market realities."

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Well, I'm not an economics professor. . . but when unemployment is at 10.2 percent, and a solar company hires an administrative assistant, I think that's completely relevant and should not be trivialized because it may or may not fit into a safe definition scribbled on a bluebook in a college classroom.

And if these guys were really all that concerned about the government favoring mandates over free market realities, than they would've kicked and screamed about the trillions of dollars we shell out in fossil fuel subsidies every year.

But there's no need to spend any more time on this one. The fact is, this particular study has already been picked apart and called out for exactly what it is: a hack piece.

Besides, we have some fantastic new green job numbers to report on today — thanks to a new Green Jobs study from the U.S. Green Building Council (USGBC) and Booz Allen Hamilton.

Green Building Supports 7.9 Million U.S. Jobs

According to this latest Green Jobs study, green building will support 7.9 million U.S. jobs and pump $554 billion into the American economy — including $396 billion in wages — from 2009 to 2013. The study also found that green construction spending currently supports more than 2 million American jobs and generates more than $100 billion in GDP and wages.

Of course, we've been singing the praises of green building for years.

In fact, I can remember back in 2005 when I told Green Chip readers about the "latest" numbers from McGraw Hill, which put the total value of green construction at $10 billion!

In 2008, that skyrocketed to between $36 and $49 billion. And according to McGraw Hill, 2013 estimates put this market at between $96 and $140 billion.

My friends, not only are we talking about enabling very necessary job creation, but we're also talking about the kind of growth that enables huge opportunities for investors.

Since we launched Green Chip, we've covered (and profited from) green building plays in:

Solar
LED Lighting Systems
Energy Efficiency and Conservation
Water Reclamation
Environmentally-friendly Paints, Coatings and Sealants
Sustainable Building Materials

And as the green building movement continues to grow, so will our opportunities.

To a new way of life, and a new generation of wealth. . .

Jeff

P.S. As an interesting side note, this new Green Jobs study also found that from 2000-2008, the green construction market realized $1.3 billion in energy savings. Energy savings forecasts for 2009-2013 come in at $6 billion.

P.P.S. Nick will be in California this week, checking out GreenBeat 2009. In addition to Al Gore and Vinod Khosla, Nick will be meeting with plenty of smart grid executives. . . getting the inside scoop on the smart grid so he can deliver even more profits for his readers.

Suntech Solar Arizona

So it looks like Arizona has been chosen as the location for Suntech's first U.S. manufacturing plant.

Located in Phoenix, initial production capacity will come in at 30 megawatts. Production is expected to start in Q3, 2010.

This particular plant is expected to employ 75 full-time workers.

Also in solar, industry research firm iSupply updated its forecast on the oversupply of solar panels, stating that the glut could be resolved next year. Initially iSupply forecast the oversupply to last throughout 2010.

Of course, based on strong demand in Germany, and new subsidy-driven demand in the U.S. and China, we're not surprised. It doesn't take a rocket scientist to look at the subsidies in the U.S. and China and realize that any solar glut will be short-lived.

And finally, the Spanish government announced on Friday that it plans to bring 8.8 gigawatts of renewable energy generating capacity online by 2012. 5.3 gigawatts will come from wind, and 1.5 gigawatts will come from solar.

Jeff

IEA Climate Change

For those who oppose any kind of meaningful action on global climate change, consider the latest findings on the cost of inaction.

According to the International Energy Agency (IEA), the world will have to spend an extra $500 billion to cut carbon emissions for each year it delays implementing serious action on global warming. This would be on top of the $10.5 trillion investment needed from 2010 to 2030 to boost renewable energy development and improve energy efficiency.

Of that $10.5 trillion, the IEA states that about 45 percent, or $4.7 trillion in investment will be in transportation. Just one more reason we continue to remain so bullish on the electrification of our transportation infrastructure, mass transit and high speed rail.

The IEA report also pointed out that to continue current trends of energy demand and burning fossil fuels would lead almost certainly to massive climate change and irreparable damage to the planet.

Of course, if the international community does take significant and decisive action on climate change, the IEA scenario shows that - in regards to transportation - by 2030, conventional internal combustion engines will represent only about 40 percent of vehicle sales, with hybrids taking up 30 percent, and the rest being taken up by plug-in hybrids and electric vehicles.

We remain bullish on the premise that the international community does move forward - despite heavy lobbying that seeks to deter or at least slow progress on climate change legislation. There's too much at stake - politically, environmentally and economically - to assume otherwise.

Jeff

Sanyo Solar

The California Public Utilities Commission (CPUC) has issued its quarterly staff report on California's Renewable Portfolio Standard (RPS).

According to the report, more renewable energy generation came online in 2008 than in the entire 2003-2007 time period. And forecasts show that new installed capacity in 2009 will almost match the amount that came online in 2008.

And Sanyo announced yesterday that it's planning to increase investment in its battery and solar business. This news comes as the company moves closer to being acquired by Panasonic.

With the completion of this expected takeover, Panasonic could become a major player in hybrid car batteries and solar power.

Meanwhile, now that Sanyo is making more of its own silicon and initiating other strategic moves, the company could be able to cut the cost of its solar panels by as much as 33 percent by the end of next year.

Jeff

Wind Energy Stimulus

Earlier this week I told you that China marched into the Lone Star State with $1.5 billion for a 600+ megawatt wind farm. The project is actually a joint venture with Cielo Wind Power, U.S. Renewable Energy Group, and Shenyang Power Group. When completed, it will supply enough power for about 180,000 homes.

Well, now it looks like Senator Charles Schumer (D-N.Y.), wants the Obama administration to reject an expected request for stimulus funding for this particular wind project because it could end up generating Chinese jobs - not U.S. jobs. According to the Senator, if approved, the funds would be used to buy turbines and other components made in a Chinese plant.

Certainly I agree that stimulus money should be provided for projects that create domestic jobs (especially in the manufacturing sector). But it will be interesting to see how this one plays out.

I suspect that part of the whole deal hinged on Chinese manufacturer, A-Power Generation Systems providing the turbines. And I can't imagine the Chinese will set up manufacturing facilities in the U.S. just for this one project.

It's actually quite frustrating when you think about it. After all, we have fantastic wind resources in Texas, yet at this point, the only folks willing to pony up the cash to develop this particular project are in China.

Don't get me wrong. If China wants to invest in these projects (and make huge profits) because we can't seem to get it done - so be it. Because the bottom line is that we need to build out our renewable energy mix and strengthen our electric infrastructure now. Not tomorrow. And if China's willing to step in because we won't - well, that's on us.

And don't kid yourself. China already has a huge stake in all of this anyway. Whether through turbines, solar panels and batteries or the rare earth elements that are necessary to build these things - China's influence on OUR energy economy is real...and it's massive.

Of course, it's no secret that the opportunity for renewable energy development in the U.S. is huge. And if a Chinese company wants to invest in a Texas wind farm or set up shop here in the United States, and use domestic workers to manufacture this stuff - I'm all for it. Certainly that's what companies like Vestas, Gamesa and Siemens have done.

But with unemployment likely to remain at unacceptable levels for years to come, we can't afford to lose out on a single job.

That being said, if we don't get our act together soon and start getting aggressive on providing the necessary funding and manufacturing for our own renewable energy development - rest assured, someone else will. With or without stimulus funds.

Jeff

Climate Change Debate

Well, I can't say I'm surprised.

Climate Change legislation on the Hill has proven to be exactly what we should have expected all along - a partisan bickering match comparable to playground scuffles I recall from my elementary school days.

On cue, the Republicans moved to boycott this week's work session on a climate change bill, stating that they want more time to study the EPA's economic analysis. Interestingly enough, these folks had nothing to say when the Bush Administration used the EPA as a pawn in the game of delaying serious climate change debate. But you know how it is - it's all politics.

Certainly we saw much of this kind of behavior from the Democrats during the Bush years. It's really not much different.

That being said, the request for more time to review the EPA's economic analysis is nothing more than a stall tactic. There has been plenty of time for everyone to review the EPA's findings. They're just not happy with the results because the results further erode the argument that climate change initiatives will put us in the poor house. It's not true, and anyone who wants to be honest about this, knows it's not true.

Of course, I won't lie. This whole cap and trade concept plays out as a very complex system that seeks to achieve a goal which can be achieved without it.

The best way to reduce greenhouse gas emissions is to go full force on renewable energy and transportation alternatives (like electric vehicles and rail), cut all subsidies for the petroleum industry (don't think for a second that what you're paying at the pump is the appropriate price for that gasoline) and figure in ALL environmental costs in any type of power production. Some folks want to roll their eyes at that one. So come talk to me after the last bit of remaining fresh water we have has been polluted by tar sands operations and mercury pollution from coal-fired power plants.

Listen: We can sit here all day and debate energy costs. But when the air's toxic and the water is no longer safe to drink - debate on energy costs will be irrelevant. Just ask the Chinese. Not only are they pouring billions into renewable energy development, but they're also funding new renewable energy operations here in the U.S.

And what are we doing? Oh, we're playing partisan games, telling folks that requiring utilities to cut their carbon emissions will hurt the economy.

No my friends. What hurts the economy is our continued reliance on oil, the never-ending environmental costs involved with our reliance on coal-fired power, and the continued utilization of a crumbling infrastructure.

And let's not back away from the real issue here. Any costs related to any kind of pollution stemming from power production should be considered operational costs anyway. If you make a mess, you clean it up. If it ends up costing the consumer more. . .well guess what - that's the price of power.

We've become dangerously accustomed to insanely cheap power because for far too long these costs have been externalized. But they still exist. They didn't just disappear because some politician handed off the problem to someone else. And maybe it's about time we pay the REAL cost for power production, anyway. After all, this would certainly encourage alternatives. And in the long run, we'll all be better off economically.

Think about it: The costs of producing and burning fossil fuels will only continue to go up. But the costs for renewable energy will continue to fall for decades.

It's about investing in the future, folks. It's about not being OK with complacency and handing off this burden to future generations.

Enough with partisan dust storms. Enough with misinformation campaigns and political prejudices. Enough with denials.

The future is going to be powered by renewables. Conventional fossil fuels are extreme environmental and economic strains. And anyone who's willing to look at this honestly - without the influence of political motives - knows this is true.

So the choice is ours. Continue walking down the path of complacency while the rest of the world embraces progress, or take a stand for future economic and environmental prosperity. But make no mistake, if we miss this opportunity, we're dead in the water in twenty years. A second-rate nation with a great history of accomplishments, but one major, game-changing regret.

Jeff

Top Wind Energy Companies

Last year, I sat on a panel at an energy conference where someone asked me my thoughts on China's impact on the renewable energy sector.

My response was simple, upset a lot of people, and has since proven to be pretty accurate. . .

"They're going to bury us!"

I don't say this to disregard all the progress we've made here in the United States. Certainly, we've come a long way over the past few years. And there are some excellent renewable energy companies operating domestically.

But the fact is China's desperate need for more domestically-produced power that doesn't further degrade their dwindling water supplies or pollute their air — which will give your eyes and lungs a good burn on a stagnant day — is a major catalyst for renewable energy growth in the Middle Kingdom.

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This is why the Chinese government is ponying up billions in support for solar, wind, and electric vehicles. Because without these things, future growth will absolutely be stalled. They know it. . . the big money knows it. . . and if you're a long-time reader of these pages, you know it, too. . .

In the meantime, the Chinese continue to pump out solar modules cheaper than anyone else; their largest wind turbine manufacturer, Sinovel, will likely become one of the world's largest wind turbine manufacturers; and — as we're finding now — if you need billions in financing for a wind farm, China may be more than willing to provide that, too.

Laying the Groundwork for Alternative Energy Development

Last Thursday, China marched into the Lone Star State with $1.5 billion for a 600+ megawatt wind farm.

The project is actually a joint venture with Cielo Wind Power, U.S. Renewable Energy Group, and Shenyang Power Group. When completed, it will provide enough power for about 180,000 homes. Chinese turbine manufacturer A-Power Energy will be supplying the turbines.

Here's what Jinxiang Lu, Shenyang Power Group's CEO had to say about the project: "With a long track record for building some of the world's biggest wind farms, the U.S. is an ideal target for foreign alternative energy investment."

And he's right.

But this is no secret. . .

Sure, it was just last week when Energy Secretary Steven Chu told reporters that the U.S. was falling behind China and others in alternative energy investment.

But we've been reporting on this for years.

And let me tell you, you don't have to be the Energy Secretary to know that foreign corporations have been aggressively laying the groundwork for alternative energy development in the U.S.

Heck, just over the past two years, Spanish wind energy powerhouse Gamesa (MCE: GAM) has built four new wind turbine production facilities in the States. Siemens (NYSE: SI) has a rotor blade manufacturing facility in Iowa and they are currently building a turbine production facility in Kansas. And Denmark-based Vestas (CO: VWS) is now building two new manufacturing facilities in Colorado.

My friends, companies like these don't throw down hundreds of millions of dollars to build out manufacturing in the U.S. without some certainty that there's a big pay day involved. . .

And investors who ignore this fact will continue to miss out on one of the greatest investment opportunities of the 21st century.

Like our latest wind play, for instance. This one could be an easy double in six to eight months.

It's a wind energy developer based in California that could get a huge boost in about eight weeks, after California's new renewable energy mandate goes into effect.

You can read more about this wind company here.

To a new way of life, and a new generation of wealth. . .

Jeff

Solar Rights

Yesterday afternoon at the Solar Power International Conference, Solar Energy Industries Association CEO Rhone Resch, announced a Solar Bill of Rights. I thought it was exceptional, so I decided to pass it along to you today.

Here's what Resch delivered. . .

"We declare these rights not on behalf of our companies, but on behalf of our customers and our country. We seek no more than the freedom to compete on equal terms and no more than the liberty for consumers to choose the energy source they think best."

1. Americans have the right to put solar on their homes or businesses Restrictive covenants, onerous connection rules, and excessive permitting and inspections fees prevent many American homes and businesses from going solar.

2. Americans have the right to connect their solar energy system to the grid with uniform national standards. This should be as simple as connecting a telephone or appliance. No matter where they live, consumers should expect a single standard for connecting their system to the electric grid.

3. Americans have the right to Net Meter and be compensated at the very least with full retail electricity rates. When customers generate excess solar power utilities should pay them consumer at least the retail value of that power.

4. The solar industry has the right to a fair competitive environment. The highly profitable fossil fuel industries have received tens of billions of dollars for decades. The solar energy expects a fair playing field, especially since the American public overwhelmingly supports the development and use of solar.

5. The solar industry has the right to equal access to public lands. America has the best solar resources in the world, yet solar companies have zero access to public lands compared to the 45 million acres used by oil and natural gas companies.

6. The solar industry has the right to interconnect and build new transmission lines. When America updates its electric grid, it must connect the vast solar resources in the Southwest to population centers across the nation.

7. Americans have the right to buy solar electricity from their utility. Consumers have no choice to buy clean, reliable solar energy from their utilities instead of the dirty fossil fuels of the past.

8. Americans have the right, and should expect, the highest ethical treatment from the solar industry. Consumers should expect the solar energy industry to minimize its environmental impact, provide systems that work better than advertised, and communicate incentives clearly and accurately.

This is great stuff!!!

Jeff

Smart Grid Development

So it looks like the government is going to pony up $3.4 billion in grants for smart grid development.

In an effort to help consumers save money on electric bills, reduce blackouts and move a wealth of new wind and solar, these grants will go to 100 companies, utilities, manufacturers, cities and various other partners in 49 states.

The winning companies have also secured another $4.7 billion in private investment, bringing the total to $8.1 billion in total smart grid investments.

And in wind news, SeaEnergy announced today that it's looking to build offshore wind farms in Taiwan with energy project developer, Taiwan Generations Corporation.

The two companies will start with an offshore wind farm on the west coast of Taiwan, which will have a capacity of up to 600 megawatts.

Taiwan currently has a renewable energy target of 15 percent by 2025.

Jeff

Bulgaria Wind Energy

N-Vision Energy has announced it will invest up to $210.5 million to build a 100 MW wind farm in Bulgaria.

The wind farm, which will be the second largest in Bulgaria (the largest is a 156 MW farm on the northern Black Sea coast), is going to be built about 42 miles south of Sofia. Operations are expected to begin in 2011.

And in solar news, the ENN Group has signed an agreement with Duke Energy to register a joint venture with the goal of becoming a PV systems provider in the U.S. The JV will focus on utility-scale solar farms and commercial distributed generation projects.

ENN operates China's first silicon thin-film photovoltaic module production line. The company's capacity has reached 70 megawatts, although expansion plans are expected to take capacity to 500 megawatts over the next two years.

Jeff

Novera Wind Energy

Novera Energy (LON:NVE)announced today that Lloyds and BNP Paribas will pony up a 15-year project debt facility for up to $59.5 million so Novera can begin construction of the Glenkerie wind farm in Scotland.

When completed, the wind farm will boast 11 wind turbines with a capacity of up to 27 megawatts - or enough to power roughly 15,000 homes. The wind farm is expected to become operational in 2011.

And MEMC Electronic Materials (NYSE:WFR) announced yesterday that it will be acquiring SunEdison for $200 million.

SunEdison develops, finances and operates solar plants all over the world. It's actually the largest solar energy services provider in North America with more than 72 megawatts of photovoltaic solar power plants currently under management. The company also has more than 6 megawatts in Europe.

Under the terms of the agreement, security holders of SunEdison will be paid 70 percent in cash and 30 percent in MEMC stock.

Jeff

Suntech Solar Reliathon

In an effort to expand into the U.S. utility-scale solar market, Suntech Power (NYSE:STP) is launching a new product called Reliathon, which integrates 270-watt solar panels with inverters and other components that can be used for large-scale solar arrays.

According to the company, by using Reliathon, the overall savings for installing a system of at least 10 megawatts could come in at around 10 percent. When you're talking about million-dollar projects, this is a pretty big deal.

Suntech says it plans to start shipping Reliathon in Q2, 2010.

Also in solar news, Mexican restaurant Chipotle (NYSE:CMG) has announced that it is partnering with Standard Renewable Energy to install solar panels on about 75 of its restaurants over the next year. Once completed, the project will make Chipotle the largest direct producer of solar energy in the restaurant industry.

Here's what CEO Steve Ells had to say...

"Our effort to change the way people think about and eat fast food began with our commitment to serving food made with ingredients from more sustainable sources, and that same kind of thinking now influences all areas of our business. Today we're following a similar path in the way we design and build restaurants, looking for more environmentally friendly building materials and systems that make our restaurants more efficient."

Beyond this recent announcement, Chipotle was already the first restaurant to receive LEED Platinum certification - which is the highest level of "green" certification by the U.S. Green Building Council - for its Gurnee, Ill location. And all of Chipotle's new restaurants do include some environmentally friendly materials, including low VOC paints, recycled drywall and stainless steel, and low-E window glass that helps reduce heating and cooling needs.

Chipotle's been a leader in the pursuit of more sustainable building options as an extension of its philosophy which is called "Food with Integrity." The idea being that the company seeks ingredients from more sustainable sources. This has led to Chipotle being the leader in providing more naturally raised meat (from animals raised in a humane way, never given antibiotics or added hormones, and fed a pure vegetarian diet) than any other restaurant company. The company also serves organic and locally-grown produce, and cheese and sour cream made with milk from cows that are never given the synthetic hormone rBGH.

Jeff

Honda Electric Cars

Despite being one of the strongest advocates for hydrogen fuel-cell vehicles, Honda is now considering launching electric cars in Europe, Japan and the United States.

According to reports, slow progress in setting up hydrogen fueling stations could limit the sale of the company's fuel-cell vehicles. This is something we've been saying for years. While fuel-cell vehicles do offer the promise of zero or very low emissions, the infrastructure issue continues to make it unrealistic on an economic and logistical basis. Electric vehicles, on the other hand, already have the necessary infrastructure in place. And according to a report issued by the DOE's Pacific Northwest National Laboratory, off-peak electricity production and transmission capacity could fuel 84 percent of the country's 220 million vehicles if they were plug-in hybrid electric vehicles.

Of course, as we continue to move forward with the electrification of our personal transportation, battery advancements will also be necessary. But we're seeing that already. In fact, just a few weeks ago, researchers at Japan's National Institute of Advanced Industrial Science and Technology developed the first Nickel-Lithium battery that can hold more than 3.5 times the energy of a normal Lithium-Ion battery.

When you're talking about an all-electric range of anywhere between 40 and 200 miles - that's a pretty big deal. Especially at the upper end, where this kind of technology can actually bring the all-electric range to a typical range for a gas-powered vehicle today.

Point is - and as we've been saying for years - electric vehicles really do represent the next logical evolution in vehicle development. And as you probably know by now, the major automakers are proving it - as nearly every one of them now has an electric or plug-in hybrid electric vehicle in development.

Jeff

Siemens Wind Turbines

Siemens AG (NYSE:SI) announced today that it has been awarded six new wind turbine orders in North America, totaling more than 565 megawatts.

About 25 percent of the 250 turbines are headed to Ontario, with the rest destined for California, Oklahoma, Washington State and Wyoming. Combined, these wind farms will have the potential to provide enough power for 170,000 North American homes.

Valued at around $888 million, these orders further solidify Siemens' position as a leading turbine supplier.

In an effort to meet the increasing demand for wind power in North America, Siemens actually broke ground in Hutchinson, KS last month for its new wind turbine assembly facility. Once operational, the new facility is expected to employ about 400 green-collar workers.

Jeff

Green Job Creation

According to a new study released by University of California economist David Roland-Holst, California's goal of reducing greenhouse gas emissions will boost the state's economy and preserve hundreds of thousands of jobs that are now at risk due to rising energy costs.

The study indicates that rising fossil fuel prices could cut state economic output by $84 billion and slash 626,000 jobs from California's payrolls in 2020. But with a 33% renewable portfolio standard enforced, output would instead rise $20 billion and create 112,000 jobs.

And in the Midwest, governors from seven Midwestern states gathered in Detroit on Wednesday and adopted new jobs and infrastructure agreements that support training programs in the areas of renewable energy, energy efficiency and biofuels.

The governors also indicated the necessity to work together in an effort to develop a network of high-voltage power lines that can move wind power from the windiest parts of Iowa, Minnesota and the Dakotas to Midwestern cities that consume large amounts of electricity.

Here's what Wisconsin Governor Jim Doyle had to say. . .

"If we don't move to renewable energy, we are going to see jobs not only lost, but jobs gained in other parts of the country and other parts of the world. This is where the world is moving, and Wisconsin has a lot of advantages that we had better build on. If we don't seize this opportunity, it is going to be bad for jobs."

We couldn't agree more!

Jeff

Apple Climate Change

The dash for the door continues over at the U.S. Chamber of Commerce.

Apple announced on Monday that it is leaving the Chamber because of the business group's climate change policy.

VP of Government Affairs Catherine Novelli wrote. . .

"We would prefer that the chamber take a more progressive stance on this critical issue and play a constructive role in addressing the climate crisis,"

Apple's departure follows Exelon Corporation, PG&E, and Nike (which didn't leave the Chamber, but did resign its position on the board of directors of the Chamber).

Also in the news, President Obama ordered federal agencies to set a greenhouse gas reduction goal within the next 90 days. This executive order requires all federal agencies to measure, manage and reduce greenhouse gas emissions toward agency-defined targets by 2020.

Operating more than 600,000 vehicles and occupying almost half a million buildings, the federal government is the largest energy consumer in the U.S. So certainly this is great news for renewable energy, electric vehicle and energy efficiency/conservation companies.

Jeff

Solar Industry Tariff

Last Wednesday, the New York Times reported that companies importing solar panels to the U.S. are facing up to $70 million in unexpected tariffs.

Because solar panels have become too sophisticated to qualify for duty-free status, the U.S. Customs Agency has stated that they will be treated as electric generators - which are subject to a 2.5% duty.

Now word is, hardly anyone in the industry was even aware of the tariff until last week. I do find this hard to believe. And if they weren't aware of it, they should've been. Such an oversight seems a bit questionable to me.

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Nonetheless, unpaid duties and penalties have been piling up. But it's not just foreign solar manufacturers that are unhappy with the tariff.

The fact is, as a result of an enforced tariff, other countries could impose their own tariffs on U.S. exports. This has caused concern for some domestic manufacturers, as the U.S. has already exported more than a half billion dollars in solar panel equipment this year.

Still, imports do account for nearly half of the solar panels sold in the U.S. So it is likely that we will see foreign and domestic suppliers working together in an effort to negotiate a deal with Customs.

In the meantime, it should be noted that some foreign solar manufacturers are now moving some of their operations to the U.S. Certainly this would allow them to avoid the duty, while also enabling domestic job creation. Cutting out the heavy distribution costs (both environmental and economic) also serves as a bonus.

Moving In

Back in October, 2008, German manufacturer SolarWorld AG (ETR:SWV) opened a solar cell manufacturing plant in Hillsboro, OR. That facility is expected to reach a 500 megawatt capacity by 2011.

And just this past May, Chinese manufacturer Suntech Power (NYSE:STP) announced its plans to establish manufacturing in the U.S.

CEO, Dr. Zhengrong Shi said. . .

"We believe in the outstanding long-term prospects of the solar energy market in the United States, and we will continue to invest in our ability to meet a substantial portion of that potential growth through in-market manufacturing. A number of favorable developments have led us to this decision, including the dramatic growth in utility demand for large-scale wholesale solar projects, the increasing number of states with incentive programs for customer-owned systems and the federal government's recent stimulus package, all of which will drive steady, long-term growth in demand."

According to Reuters, it looks like Suntech will set up shop in either Arizona or Texas.

Still, even with domestic manufacturing credits and the call for more domestic job creation, there's no disputing the fact that China's own tax breaks and labor costs have enabled Chinese manufacturers to cut prices nearly in half.

And while Suntech is building manufacturing in the United States, Dr. Zhengrong said in an interview that in an effort to build market share, his company is actually selling panels on the U.S. market for less than the cost of materials, assembly and shipping.

It's hard to believe that less than a decade ago, solar was cast aside as nothing more than a pipe dream or toy for the wealthy and eccentric.

Yet here we are today, dealing with an industry that's now so lucrative and growing so fast, our heads are spinning with costly tariffs and cut-throat competition.

How times have changed!

So what are your thoughts on all of this?

Should a tariff be enforced?

Can the U.S. effectively compete and create jobs?

I certainly don't have the answers to these questions. But I look forward to reading your responses.

To a new way of life, my friends. . .and a new generation of wealth

Jeff

Nike Climate Change

Yesterday, following requests from a group of investors, Nike resigned its position on the board of directors of the U.S. Chamber of Commerce.

This announcement comes just one week after Pacific Gas & Electric and Exelon announced they were leaving the Chamber in protest over the organization's "extreme" climate position.

Here's what a Nike representative had to say about the decision. . .

"We believe that on the issue of climate change the chamber has not represented the diversity of perspective held by the board of directors. Therefore, we have decided to resign our board of directors position. We will continue our membership to advocate for climate change legislation inside the committee structure and believe that we can better influence policy by being part of the conversation. Moving forward we will continue to evaluate our membership."

And today, FPL Group announced it will buy three wind power projects from Babcock & Brown Power for just over $350 million.

The three projects have a combined capacity of 184.5 megawatts.

Located in Texas, Wisconsin, and South Dakota, more than 80 percent of the output from these facilities has already been sold under long-term power purchase agreements.

Jeff