Jeff Siegel - Angel Publishing

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

Alternative Energy Funding

On October 20, 2008, The New York Times ran an article titled "Alternative Energy Suddenly Faces Headwinds."

According to the piece:

"For all the support that the presidential candidates are expressing for renewable energy, alternative energies like wind and solar are facing big new challenges because of the credit freeze...

‘Everyone is in shock about what the new world is going to be,' said V. John White, executive director of the Center for Energy Efficiency and Renewable Technology, a California advocacy group. ‘Surely, renewable energy projects and new technologies are at risk because of their capital intensity.'"

It's been almost a year since that article ran, and I can tell you, small alternative energy companies — both public and private — are still finding it difficult to raise capital or to get credit lines from banks.

Sure, if you're a high-profile electric car company with big backers, like Fisker Automotive, you can get hundreds of millions of dollars in funding rather easily.

Fisker's top investors include Kleiner Perkins Caufield & Byers, a veteran Silicon Valley venture-capital firm of which Al Gore is a partner.

Last week Fisker received a $529 million loan from the US Department of Energy.

But for every Fisker out there getting the capital they need to be successful, there are 25 companies hitting brick walls because banks have literally frozen their credit lines.

In fact, I can't tell you how many times in the past six months I've been approached at a conference by a small alternative energy company seeking funding.

And being a lifelong green energy advocate, it kills me to have to turn them down. By all accounts, many of these companies have great technology, savvy management and a solid business plan to bring their product to market. These companies are the future!

But the one thing they lack is money.

The last straw for me came a few months back, when I spoke to a standing room-only crowd at an alternative energy investment forum.

The excitement and attendance was triple that from two years prior. But all the excitement was dampened by an overriding concern for most of the alternative energy companies in attendance: Funding.

"Jeff, I need just a year's worth of capital... and I can bring this product to market. Guaranteed." That was the general theme I heard time and time again at this conference.

I really was staring at a sort of crisis situation.

The fact is, for quite a few quality alternative energy operations — venture capital had dried up. . . and banks had stopped lending money.

So when I returned to Baltimore I knew I had to do something about it. I wasn't going to stop until I found the solution. After all, this was my life's work. I spent nearly two years writing a book on it. And I wasn't about to sit by and let great ideas and businesses wither on the vine.

You see, whether it's energy independence from Mideast oil or the preservation of natural capital or jobs, the alternative energy sector is just too important to the security and economic stability of this country. Period. End of discussion.

And because of my position and contacts in the renewable energy space, I knew I could be the bridge between companies seeking capital and venture capitalists and angel investors seeking green companies to invest in.

It didn't take me long to find the solution. . .

Introducing Harbor Energy Capital

A few weeks ago I had dinner with John and Ted Venners of Harbor Energy Capital at Kali's Court in historic Fells Point, Baltimore.

Born and raised in the rough and tumble state of South Dakota, John and Ted have spent nearly seven decades combined dealing with energy executives, negotiating energy deals and successfully navigating the Department of Energy and the Washington, D.C. crowd.

In addition, they know how to strategically add to shareholder value, taking their own Wyoming clean coal company to a $1.5 billion market cap.

Now when I first sat down to dinner with them, I didn't know exactly how we could help each other. But I soon found out.

They have a simple, but brilliant idea: Help cash-strapped alternative energy companies get funding from private investors. . . as well as help them get a piece of the federal government's multi-billion dollar stimulus package set aside for green companies.

By the way, if you're ever in Fells Point, go to Kali's Court for dinner and get the crab cakes — giant lump crab held together with little more than a prayer. It's all crab, all the time. Delicious.

Now, after the waitress cleared the table, John and Ted explained to me that they have assembled a team of investment bankers, Wall Street players (including Ayuda Funding, which has loaned over $500 million to various companies in the past 10 years), and federal government grant and loan experts and writers.

The entire goal of the team is to get alternative energy companies the money they need to get their products developed and to the market. In fact, with Ayuda Funding part of the team, bridge financing is immediately available for alternative energy companies.

As I listened to them, I realized they were true D.C. "insiders." Sure, that term has its own negative connotations, but they know exactly who to talk to in order to get the job done. They know how to get that green stimulus money for alternative energy companies.

So needless to say, I knew I had to pass this along to you.

Bottom line: If you have a small alternative energy company — either public or private — and you're still finding it difficult to raise necessary capital or get credit lines from banks, contact Harbor Energy Capital at 703-224-8108; email ccgrillo@harborenergycapital.com.

We have the opportunity today to use capitalism as a catalyst for real change. We can make the world a cleaner, safer place for future generations. And we can also create a new generation of wealth in the process.

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

It's not just some random catch phrase.

It's a reality.

Jeff

P.S. John is developing an algae plant on the island of Oahu in Hawaii. As you know, algae can be used as a feedstock for biodiesel. It grows faster than any other feedstock, can be used to capture carbon (it can "eat" carbon and use it to grow), and has a higher oil content than any other biodiesel feedstock

It's early in the game, but the potential is huge.

I was in Oahu in July. . . and that place is paradise. In the future I'm going to take a group of green investors to Oahu to check out the algae production. I'll let you know when I'm planning the trip. In the meantime, check out Harbor Energy Capital's website: www.harborenergycapital.com/

Google Electric Cars

I love how we've gone from questioning the reality of plug-in hybrid vehicle integration to figuring out how to best accommodate plug-in hybrids into our electric infrastructure.

According to reports, Google is now in the early stages of developing a process to write software that would integrate plug-ins to the grid while minimizing strain on the grid and assisting utilities in the management of vehicle charging.

Google has already been active in developing technology that would allow plug-ins to work as back-up power sources - enabling the parked vehicles to actually send power to the grid during peak hours.

Back in 2007, the company launched its RechargeIT initiative, which was designed to reduce CO2 emissions, cut oil use and stabilize the grid by accelerating the adoption of plug-ins. Utilizing their own plug-in vehicles, early data has shown these vehicles delivering as much as 93 miles per gallon across all trips, and 115 miles per gallon for city trips.

You can see the results here.

Jeff

Exelon Climate Change

Just one week after PG&E announced it would defect from the U.S. Chamber of Commerce in protest over the organization's "extreme" climate change position, Exelon Corporation announced that it will also now leave the organization.

John Rowe of Exelon said in a speech on Monday that inaction on climate is not an option.

Exelon is the largest nuclear power operator in the nation.

And while the U.S. Chamber of Commerce continues to fall victim to the future - instead of embracing it - the investment community continues to move forward.

According to a new report from Greentech Media, cleantech investments climbed to $1.9 billion during the third quarter. More than half of the new investment was funneled into solar and a combined category of biofuels, gasification and cleaner coal. For the sake of clarification, it should be understood that even with carbon sequestration, coal still carries other environmental burdens.

The fact is, a typical 500MW coal plant. . .

Draws about 2.2 billion gallons of water each year from nearby lakes and rivers. (That's enough water to support a city of approximately 250,000 people)
Generates 170 pounds of mercury. And it only takes 1/70^th of a teaspoon in a 25-acre lake to make fish unsafe to eat.
Relies on the transportation of coal - which requires diesel for trucks and rail, and bunker fuel for ships.

And let us not forget the massive coal ash spill that hit Kingston, TN last year. Certainly the residents of that area haven't. That's going to be a 3-year, $1 billion clean up effort, according to the environmental cleanup expert from the DOE.

Just something to keep in mind if you're analyzing the long-term potential of cleaner coal investing.

Jeff

Electric Car Fleets

Duke Energy Corp and FPL Group announced today that both will convert all of their company vehicles to electric or plug-in electric by 2020.

Combined, this will be a $600 million investment.

The conversion is expected to reduce greenhouse gas emissions by more than 125,000 metric tons over the next ten years.

This news comes just days after PG&E announced it would leave the U.S. Chamber of Commerce in protest over the organization's "extreme" climate change position. The U.S. Chamber of Commerce has consistently tried to thwart congressional efforts to pass climate change legislation.

Of course, while many utilities are starting to embrace necessary transitions in an effort to reduce their greenhouse gas emissions, there are some in Washington who believe it is wise to continue with questionable stall tactics. Like Senator Lisa Murkowski, who today is backing an amendment that would prohibit the EPA from regulating CO2 from stationary sources for one year.

It is unlikely that special interests have nothing to do with this.

Nonetheless, greenhouse gas reduction momentum does continue. And as a result, so does alternative energy momentum.

Jeff

Fisker Automotive Loan

The DOE announced yesterday that it would be awarding a $529.7 million loan to Fisker Automotive for the development of two plug-in hybrid vehicles.

The first, and probably the most well-known to those familiar with Fisker, is the Karma. This vehicle delivers 50 miles in all-electric mode with a top speed of 125 mph.

The second plug-in - called Project NINA - is Fisker's next model that's expected to come in at a price (including tax credits) of about $40,000. The company has estimated the production of between 75,000 and 100,000, starting in 2012.

Plutonic Power Corporation announced today that it and GE Energy Financial Services will be purchasing the Dokie Ridge wind project in western Canada. This is actually an uncompleted project (144 megawatts) passed along from EarthFirst Canada.

The acquisition is expected to take place in November, and construction is expected to be completed in 2011.

According to earlier estimates, the Dokie project will generate enough electricity to meet the annual needs of 34,000 homes.

Jeff