In a three-way interview with host Neil Cavuto, Chris and environmental analyst Yusef Robb gave their take on what to do with petroleum profits that Robb called "obscene."

Over in England this week, oil giant Shell scuttled its stake in a model project where oil company profits feed renewable progress, as it pulled out of a scheme to power thousands of London homes with wind energy.

If you haven't seen the Fox Business interview yet, check it out on YouTube:

http://youtube.com/watch?v=-UdewQcAhQI

As one of the minds behind Profit from the Peak, Chris is more concerned with building up than tearing down. He's really got the Peak Oil scenario covered from every angle, and the overlap with Green Chip Stocks is clear when it comes to the transitional energy economy.

Cavuto clearly had issues with Robb in the TV clip, and probably would've preferred more insights from Chris. Why?

Because his observations and suggestions are pure logic. Logic might also explain why Europe is beating America to the punch in moving things forward.

Oil companies like Norwegian operator StatoilHydro (NYSE:STO) and Royal Dutch Shell (NYSE:RDS.A) have been probing North Sea fields for decades, and now those hydrocarbon traps are in irreversible decline since a 1999 peak.

When I ventured to the North Sea coast of Scotland in 2006, I was there to check out transitional energy opportunities being exploited by Canadian firm Talisman Energy (NYSE:TLM).

Beatrice, as the pilot project just outside Edinburgh is known, is a team effort that combines old and new energy ideas and experts.

With the help of Norwegian rig engineering legend Gunnar Foss, Talisman hooked up an aging oil rig to wind turbines anchored in deep water, piloting a wind farm project with huge job and energy-creating potential.

Not only did project bosses I spoke to see the potential for wind energy to augment oil infrastructure, they knew that deepwater wind had to have the big-time financing and experience of companies like Talisman and brains like Foss to move forward.

That's the kind of resource allocation Chris Nelder's talking about, stimulating new energy from the relics of the old.

But as you probably know, energy progress can be undone. We're seeing that right now in one major U.K. project...

Shell Wind Energy Out... E.ON Still In

We were disappointed to read in the British press that Shell is pulling out of the London Array wind power project in England, which would supply household power for a quarter of Greater London homes when it is completed.

Shell wants to unload its 33% stake, but Germany's E.ON (OTC:EONGY) is sticking with it.

That angers British politicians like Environment Secretary Hilary Benn, who called Shell's withdrawal "very disappointing."

Oh and guess what? Shell, the biggest European energy company in market cap terms, crushed analyst estimates for first-quarter earnings by about a billion dollars...

Even though production only increased by 1 percent!

Those who think oil, or ethanol, or wind, is the only answer to our energy woes... should think again.

We are already seeing a combination of competitive technology and some interesting pairings—like oil companies and wind projects—to create lasting solutions.

And though Shell may have set Greater London renewables back a bit, E.ON is in for the long haul and we could very well see another company come in to fill Shell's space.

Focusing on a proper mix of forward-looking energy supply, government direction and market forces will combine to keep us away from catastrophe. Shell, BP, and smaller companies like Talisman will ensure their long term health by using windfall oil profits to pad against major supply drops.

And investors who play renewable stocks while keeping an eye on forward-thinking oil companies will remain in the green.

Regards,

Sam Hopkins
Green Chip International

This is what many researchers are looking to as the next evolution of solar.

But after attending the Organic Photovoltaics conference in Philadelphia last week, I suspect it might be some time before we see any solid plays in this area.

Organic photovoltaics (OPV) offers the promise of significant disruption in pricing and aesthetics, as well as impressive efficiencies in low light conditions. OPV materials are also flexible and form-fitting. This stuff can potentially be wrapped around or even painted onto various materials.

But in order for OPV companies to even consider competing, they have to at least measure up to the efficiency we see in current thin-film, where we've now seen levels at around 9% commercially, and 19.5% in the lab.

Today, based on assessments from the Department of Energy, and information both Nick Hodge and I have picked up while attending OPV conferences in 2007 and 2008, we're currently looking at OPV efficiencies at between 5% and 6.25%.

This stuff is not ready for prime-time power generation, as it simply cannot compete with other forms of solar power generation or even conventional forms of power generation.

That being said, we do see one angle that could really help propel OPV in the early stages. And that would be for applications which don't require significant efficiencies.

Organic Photovoltaic Applications

For example, imagine OPV applied to your cell phone.

Unlike conventional solar technologies, under low light conditions, like those in your office, home or conference room setting, OPV could continuously trickle-charge your phone. It could be possible that because of this OPV application, you'd never have to worry about your phone completely losing power.

Or perhaps OPV applied to the roof of a hybrid or plug-in hybrid electric vehicle.

While sitting out in a parking lot all day, or even while you're driving, the system could be charging your lithium-ion battery pack.

These are the kinds of applications that were being discussed at last week's OPV conference.

So at this point, we'll certainly continue to monitor the progress of OPV—but we expect the early investment opportunities to be found in applications like those just mentioned.

Because even though this is not the kind of power generation you can use to power your home...it still has the potential to offer disruptions in other markets.

And quite frankly, we really don't care where the profits come from.

As long as they keep on coming!

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

Jeff

www.greenchipstocks.com

But did you know that with over 10 million residents still off the grid and leaders aiming to maximize gas exports, Russian renewable energy could be a huge boon to the country?

Now we have to convince the Russians—starting with their new president.

Russian Renewable Energy: The OECD Plan

The Organization for Economic Cooperation and Development, is a grouping of the most prosperous nations on the planet. The OECD is a useful reference point to measure relative wealth, social progress, and increasingly it is a barometer for movement towards clean energy standards.

In 2003, OECD researchers prepared a 120-page report called Renewables in Russia: From Opportunity to Reality.

At the time, senior U.S. diplomat William Ramsay told the International Energy Agency, "Russia is the sleeping giant of renewable energy potential."

It may be a giant, but Russia isn't sleeping.

Neither is the Moscow leadership, which is now being shuffled.

Russia's President-elect Dimitri Medvedev takes power May 7, assuming the role of his mentor Vladimir Putin, who in a parliamentary shuffle will become the country's prime minister.

Putin has concentrated on wrangling Russia's traditional energy away from the Oligarchs who bought fossil fuel stakes from Boris Yeltsin's government at super-cheap prices, back in the early-mid 1990s.

Putin's stewardship of Russian oil and gas through national monopolies is credited by Russians and outsiders alike with sparking impressive 7.3% annual economic growth on average from 2003-2007.

But in order to maximize output of natural gas (Russia is the largest exporter and holds the world's biggest reserves), coal (Russia ranks #2 in recoverable reserves) and oil (the country's output often surpasses Saudi Arabia's), renewable energy should be exploited to the fullest extent for domestic use.

And aside from the hydrocarbons, Russian experts say there's plenty of wind, solar, geothermal, and hydroelectric potential there, too.

270 Million Metric Tons of Coal Equivalent

The OECD report cites Russian energy researchers estimates that the amount of economically recoverable comes to over 270 million tonnes (metric) of coal equivalent.

That's just below the 314 million tonnes of raw coal actually produced there, and due to the fact that fossil fuel prices have skyrocketed since the original report in 2003, we can assume that "economically recoverable" renewable potential has shot up when seen through the prism of fossil fuel.

What's more, OECD figures point out the irony of an actual energy deficit in East Siberia and the Russian Far East, incredibly energy-rich regions that end up exporting so much they are not even self-sufficient.

In some of these regions, where poverty is widespread, half of regional budgets are spent on fuel, leaving little to spread around sorely needed services and infrastructure.

So the task for international renewable energy investors is to find the companies capitalizing on the renewable energy progress Russia has made to date, and the ones pushing Medvedev and Putin forward with cooperation and market-based incentives.

Denmark's Vestas, the world's largest wind turbine manufacturer, is one of the companies nudging Moscow.

Interestingly, it's not in the far reaches of Siberia but the isolated Kaliningrad region (formerly East Prussia) on the Baltic Sea where Russian-Danish cooperation has taken hold.

There are already around two dozen wind turbines operating both onshore and off the region's coast, and Vestas has the jump as Copenhagen and Moscow officials frame this market opportunity in terms of binational energy assistance.

After all, it doesn't hurt Denmark to make friends with the Russian gas giant.

From a green standpoint, though, we're keeping an eye on developments in Russia. In fact we have contacts on the ground there who say recognition of clean energy is spreading from Europe into Russia's big cities, meaning there are more market opportunities on the way.

You'll hear first when the time to capitalize on Russian renewables is here.

Regards,

Sam Hopkins

The flooding was so bad it forced the shutdown of a subway station and several major restaurants in the area.

Water even entered a major natural gas main, causing nearly 1,000 people to be without gas and hot water.

The flood was not caused by some freak meteorological event. It wasn't even raining in Boston on Saturday.

So what caused this freak flooding of Beantown?

It was a water main break. And a fairly large one.

I'll get into the lucrative investment potential associated with water infrastructure stocks in a minute. But first, it's important to get a grasp on what's going on with all those pipes beneath the surface.

Water Infrastructure Breakdowns

The pre-dawn rupture occurred in a 12-inch water main in Boston's financial district.

And I'm guessing this incident only garnered so much attention because of the location in which it occurred.

You see, water main breaks have become commonplace lately.

In fact, just this week, water mains in London, Austin, Toronto and San Diego have endured similar plights. And those are just the incidents in cities large enough to be mentioned by just one name.

Small towns like Windsor, North Carolina and Parker, Colorado have also experienced water infrastructure breakdowns this week.

Oftentimes—and I'm quoting stories from multiple instances: "The cause of the water main break was unknown, officials said."

That's nonsense.

Even I know the reason for the water main breaks. They're old.

While being old may not be the technical term for water main failure, it is certainly the main driver behind most water main issues.

Technically speaking, water mains fail for one of four main reasons:

• tuberculation (the accumulation of rust, minerals, etc.)

• faulty or deteriorated joints

• inadequate hydraulic capacity

• internal/external corrosion

But no matter the cause for water main failure, the result is always the same. They need fixed or replaced.

Water Main Replacement: A Boon to Water Infrastructure Stocks

In fact, the Environmental Protection Agency (EPA) recently estimated that $374 billion will be needed over the next 20 years for water main replacement and renewal. That works out to about $18 billion per year.

The problem: we currently only spend about $1.1 billion per year.

But that spending is growing at a 25% annual clip and is expected to continue to do so for the immediate future.

This is clearly going to create a bull market in the water main replacement and refurbishment industry. The only thing left to know is how to play it.

The way I see it, there are a few ways to go about it.

The most obvious way is to invest in pipe manufacturers.

Two of my favorites in the space are Northwest Pipe Company (NASDAQ: NWPX) and Ameron International Corporation (NYSE: AMN).

Both of those companies offer broad exposure to the pipe market and will see increased business as a result of water main replacement.

The second way to play this phenomenon is through pipe refurbishment and maintenance companies.

A company called LB Foster Co. (NASDAQ: FSTR), through its Tubular Products division, offers various preventative and repair products for water transmission systems, including specialty coatings for corrosion protection.

All three of those companies are well-established and the stocks should offer great upside potential as evidence of a real water infrastructure crisis continues to emerge and accumulate.

Call it like you see it,

Nick

P.S. Now that the Green Chip Water Index is a success—it's up 32% since 2007—I've decided to recommend water-related companies in my new service, Alternative Energy Speculator. Besides the companies mentioned above, I've got my eye on a company that can replace water mains without even digging them up by using trenchless technology. You don't want to miss this recommendation.

Not that I want to turn higher education into any more of a business than it already is, but tell me, is there any more appetizing way to help develop the ideas that move renewable energy advancements?

Colleges across this country, from North Carolina's Appalachian State to the Massachusetts Institute of Technology have their act together, creating laboratories and conducting research that keeps them on the leading edge of the transitional energy economy.

I've been especially bullish on Boston-based MIT, not only for its prestigious reputation but because the school is aggressive about putting knowledge into action.

MIT's key role in the Masdar zero-emission city project in the United Arab Emirates really caught my eye...

Masdar, meaning "source" in Arabic, is a plan for 15,000 people to live in an entirely energy-contained community just outside of Abu Dhabi. MIT is in on the ground floor of the project, getting what amounts to be the biggest petri dish on the planet.

Masdar is now under construction with $15 billion in funding from the Abu Dhabi government, making it the largest sustainability initiative ever.

The Masdar Institute, to be constructed on the new city site, will feature MIT faculty and interdisciplinary programs that constantly evaluate and improve the reality of life in town, while extracting lessons for future state and private planners.

However, the construction of Masdar is not expected to finish until 2016... That's a long time to wait, even for a city full of the newest technology, and it's a long way from most of the world.

That's why I'm glad MIT is also moving forward on another front—affordable solar energy.

MIT Solar Project Launches

With a $10 million gift, the Solar Revolution Project at MIT will pioneer material and connection clean energy technology that brings costs down while increasing efficiency.

Capture, conversion, and storage are the three pillars of the planned SRP research, which will in turn, make up part of MIT's broader $100 million Energy Initiative project.

As the Chesonis Family Foundation, which gave the $10 million SRP gift, said in a statement:

By investing in the people at MIT and giving them the freedom to take risks in the lab, we will enable them to be true game-changers-advancing the state of the art to a point where solar power is cheaper and more reliable than electricity from coal.

Of course, MIT is in a place where most companies will never find themselves—they have free money and free rein to hatch ideas and develop them without accounting to shareholders.

Abu Dhabi doesn't have any EPS targets to meet, either, which is why we're looking to the deep pockets of Persian Gulf emirs as an unlikely source for fossil-free energy technology.

Either way, it's clear that IPO companies aren't the only source for solutions. As an investor that may frustrate you, but consider that Abu Dhabi also hosted the first World Future Energy Summit this January, bringing together thousands of participants and hundreds of companies that are licking their lips at a chance to prove their technology in Masdar City.

And MIT? Well, campus press says that school alone is responsible for thousands of patents that have been licensed to companies since 1980. The school's innovations are estimated to add close to $1 billion to the economy, or about $1 million per patent per year.

There is plenty of business to be done.

Kind regards,

Sam Hopkins

By the way... I'm partial to profits, and I'm not content to sit on the sidelines waiting for Masdar to finish or wait for a new American revolution to launch in Boston. That's why your Green Chip editors are scouring the world for TODAY's energy profits, and delivering big-time gains with Green Chip International. In fact, our two most recent picks are up big, and the rest of the portfolio is ready to break out. To learn more, click here.

So here we are, April 22, and all the headlines are screaming green in an effort to spread the Earth Day message.

There will be Earth Day rallies, festivals and dozens of local television news stories - on location - jumping on that green bandwagon and speaking volumes about something most know nothing about.

But hey, it's publicity, right?

And the more folks who go green, the more money we make.

Though the reality is, no matter how eco-friendly our society becomes, it's really the fundamentals of supply and demand that dictate the success of renewable energy markets.

Especially when it comes to oil.

Let's be serious. Do you really believe that every person who owns a hybrid is some kind of outspoken environmentalist?

No way!

It's a dollars and cents game, folks.

Oil flew past $117 on Monday. Gas is moving closer to $4.00 a gallon. Food prices are skyrocketing because of diesel cost increases. Some truck drivers are actually paying about $1,000 for one fill-up at a service station.

I'm not saying biofuel prices aren't affecting the cost of food, but don't be so quick to dismiss a $1,000 fill-up. In 2006, that same fill-up was costing about $300!

Yes, my friends - those high fuel costs are the real culprit.

And they're not going away either.

So it's really no surprise that the flow of capital into alternative transportation technologies continues to increase at a record pace.

Whether its high-performance batteries for Plug-In Hybrid Electric Vehicles or pretreatment technologies for cellulosic ethanol production (a process that won't add to the overall cost of wheat, corn, and soy) - the smart money is staking its claim now.

Because the next stop is NOT $4.00 a gallon.

In fact, a year from now we'll be wishing for $4.00 a gallon.

Mark my words, this is not a trend that's likely to end any time soon...if ever.

Peak oil is upon us. And investors have two choices: Embrace the future, or fall victim to it.

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

Jeff

This week, as promised, we'll take a look at some of the new silicon suppliers that have entered and will be entering the market, as well as the solar companies that are bringing part of the silicon supply chain in-house.

We'll get there by first diving into a Trina Solar Limited (NYSE: TSL) story that broke just yesterday.

Trina Nixes Poly Plant

Yesterday, before the market even opened, Trina announced the cancellation of a plan to build a $1 billion polysilicon production plant.

In a solar environment with a lingering silicon shortage, I naturally thought this was bad news. But to my surprise the shares were actually trading up in premarket, and then went on to touch a three-month high.

Here's why.

The plant wasn't cancelled for a lack of funding or sagging business. Instead, the company sited a "favorable change in the polysilicon environment" which has led it to "believe it has greater access to polysilicon feedstock to support its growth objectives."

The Street took that as a good sign. And taking into consideration Trina announced an eight-year contract to buy (rather than produce) polysilicon earlier this month, shares went on to gain 9%.

The cancelled plant was expected to have a capacity of 10,000 tons per year, which leads us naturally to our next topic.

Tons of Silicon from New Suppliers

Last week I hinted at vertical integration from panel manufacturers trying to bring silicon production in-house.

Like clockwork, Arise Technologies Corporation (TSX: APV) announced intentions to establish a high-purity silicon plant in Canada in 2011, with an eventual output rate of 10,000 metric tons per year--the same amount Trina was planning on producing from a company with less than one tenth the share price.

That's in addition to the company's Waterloo, Ontario plant, which has a target capacity of 50 tons per year beginning in 2009, going to 400 tons in 2010.

Arise will use the new silicon output to supply their growing solar cell production facility in Germany and to sell to other companies.

LDK Solar (NYSE: LDK) is also expanding its presence in the polysilicon sector. A solar wafer manufacturer by its own admission, LDK has recently contracted with Fluor (NYSE: FLR) to build the world's largest polysilicon plant.

When complete, the plant will produce up to 15,000 tons of polysilicon per year. Construction began in fall 2007 and the first production line is expected to be finished by the end of this year. The remaining two lines will be finished by summer 2009.

This is a fairly important announcement. An annual capacity of 15,000 tons is on par with output estimates from the world's biggest polysilicon producers--Wacker Chemie (XETRA: WCH) and Hemlock--as far out as 2010.

Investing in New Polysilicon Suppliers

There are simply too many new entrants in this market to cover in one article, but I'll do my best to paint a clear picture of what's going on.

Hoku Scientific (NASDAQ: HOKU) has obviously been the most well-covered company operating in this space.

Last fall, information came my way predicting Hoku would produce 1,000 tons in 2009, doubling capacity to 2,000 tons in 2010.

At a conference in February, CEO Dustin Shindo indicated a capacity of 3,500 tons in 2009, ramping to 8,000 tons by mid-2010.

Now don't get me wrong, I like this company. And I think the share price will benefit nicely once they begin shipping polysilicon.

But per an announcement last week, Hoku's Idaho plant isn't scheduled to be completed until September 2009, which will make it tough to reach their 3,500 ton stated output for that year. So share price may stagnate for a while, but it will certainly be worth more than the current price under $9 when the plant comes online.

Other new suppliers worth taking note of, with their predicted 2008 capacity:

· DC Chemical (SEO: 010060), 1,000 tons

· M. Setek, 2,800 tons

· SolarWorld (XETRA: SWV), 1,500 tons

· Nitol, 500 tons

· Elkem, a division of Orkla (OSL: ORK), 1,667 tons

There are a few other companies, both domestic and abroad, that are entering this space as well.

The Alternative Energy Speculator has already banked 180% on one of these companies. And I plan on taking additional gains from the polysilicon supply side of things going forward.

If you're interested in playing these unique angles of the alternative energy markets, click here to become a member today.

Call it like you see it,

Nick

Green Chip Stocks

This week, Democrats are vowing to indefinitely stall the free trade agreement with Colombia to gain leverage on presidential economic power, and Republicans are lamenting what may be the end of the FTA era.

But more than anything, it's really the end of the oil age, and stimulation of biofuel production in South America's northern reaches is pivotal for U.S. economic health and regional influence.

Colombia's Biofuel Production Hurdles

In spring 2007, I sat just feet away from the Colombian Minister of Mines and Energy, Hernan Martinez as he addressed the Biofuels Americas conference in the coastal city of Cartagena.

The minister's take on the dual challenges of energy security and safety from Colombia's drug scourge opened my eyes.

As a country plagued by the narcotics trade, Colombia's agricultural industry is essentially held hostage by narcoterrorism.

As Minister Martinez spoke, he emphasized the importance of biofuel development in the face of the drug thugs who control much of the country's cultivable land.

Martinez did not qualify the enemy of Colombia's progress with a prefix. He called narcoterrorism simply "terrorismo."

For Colombians, al-Qaeda is not the most immediate threat. Though global trouble figures heavily in oil prices and each nation's subsequent desire for energy independence, the interplay between agriculture, jobs, fuel, and international standing is intricate in Colombia.

It is "especially important for our country," Martinez told us, to use biofuel development as a counterbalance to the "cultivation of illicit crops."

Martinez, a businessman who used to work with Exxon, was echoed in his comments by Jorge Cardenas, head of the Colombian industry group Fedebiocombustibles (biocombustibles means "biofuels" in Spanish).

Cardenas said that 300,000 people would eventually be employed directly and indirectly by the Colombian biofuel industry, many of them agricultural types whose livelihoods are currently too easily swayed towards the unsavory reliance on illicit substances cultivation.

Colombian Biofuels: Will They Reach the Energy Market?

Colombia has already put laws on the books that stipulate that Colombian gasoline must be 10% ethanol by 2009, heading up to 25% by 2025.

This will be sugar-based ethanol, coming from more than 30 cane-processing plants in 17 provinces.

Biodiesel options are also being considered, mainly from the African palm tree which grows well in Colombia's climate.

Unfortunately, the Office of the United States Trade Representative, the executive agency in charge of drafting and promoting the Colombia FTA and others, doesn't even include energy in its executive summary, let alone biofuels.

Even with 300,000 jobs at stake in a country that sorely needs them, the deadlock over the Colombia FTA may go down as yet another in a series of missed opportunities to use new energy sources to fuel more than just cars.

Regards,

Sam Hopkins, Green Chip International

PS. The Green Chip International portfolio is already positioned to take full advantage of the South American biofuels boom. The company in our portfolio is primed to sell sugar-based ethanol to other South American countries as well as to the U.S. To get access to the company and all of the other winning international renewables companies in the portfolio, click here.

But before we get into investing in silicon... specifically in the ongoing silicon supply crunch and the many companies that produce it, let's first go over how silicon becomes a solar panel.

Here's how it works:

1. oxygen is stripped from the silicon (usually found in sand) to form polysilicon
2. polycrystalline silicon (polysilicon, poly-Si or poly) remains and is formed into single (mono) or polycrystalline (multi) ingots or ribbons
3. ingots are formed and pressed into wafers
4. wafers are deposited on substrates (usually glass) to become cells
5. multiple cells are placed together on a panel to form a module

Of course, that is the extremely short version. And many companies have made their mark by altering or improving one or more steps in that process.

Other producers have found success by using entirely different feedstocks. The most successful, of course, has been First Solar Inc. (NASDAQ: FSLR) and their cadmium telluride solar energy technology.

But the solar industry is still (and will continue to be) dominated by silicon-based modules. And there is plenty of money to be made by playing the suppliers of silicon in addition to the makers of cells.

Who are the Silicon Suppliers?

Last week, Munich played host to one of the largest and most influential events in solar, Photon's Photovoltaic Technology Show.

Germany, as you may know, is mother of the modern solar industry and by far the world's largest market. So what happens there is taken into consideration by solar companies operating all over the globe.

Although not personally in attendance, the word on The Street is that silicon for solar supply continued to be a contentious issue at the conference, with industry insiders examining when, exactly, the prolonged crunch would be over.

The general consensus is that late 2009 (heading into 2010) will be when the supply crunch wanes. The reasons being the expanded production of a number of silicon manufacturers and the entry of new producers.

Here's what the big foreign producers have announced:

• Hemlock Semiconductor Corp. growing production to 36,000 metric tons by 2011
• Wacker Chemie (FRA: WCH) will reach 21,000 metric tons in 2010
• Renewable Energy Corporation (OSL: REC) will reach 7,000 tons this year

It is important to note the previous projections of these companies (put out in the third-quarter of 2007) were much lower, indicating that new supply is coming online.

Yet the world's fourth largest producer of solar grade silicon, MEMC Electronic Materials (NYSE: WFR) has lowered its first-quarter revenue outlook, which Piper Jaffray analyst Jesse Pichel attributes to production issues and low output. Their revenue outlook was trimmed to $500 million from $560 million and their gross margin was trimmed two percentage points to 52%--still notably higher than the 30% most module manufacturers are striving for.

Rounding out the rest of the world's top current producers are Japan's Tokuyama, Mitsubishi and Sumitomo, which all trade on foreign exchanges. Tokuyama seems to be the best in breed of that group.

But some new players are entering the game.

Investing in Silicon Suppliers

If you missed the meteoric rise of the founding fathers of the silicon industry--MEMC is up over 550% in five years--there is still time to get in.

Obviously, supply and demand are dictating the opportunities in this industry. With demand currently outpacing supply, some new entrants were bound to enter the market. And not only that, some solar manufacturers are vertically integrating to bring silicon refining in-house.

The most exciting and clandestine opportunity in this space just might be Silicium Becanour, which was one of the first new companies to actually deliver silicon back in 2006.

The reason for the obscurity is the company was actually acquired in 2004, but continued to operate under its old name. The company that bought it was Timminco LTD. (TSX: TIM), and their share price has benefited handsomely from acquiring one of North America's largest producers of silicon. Take a look:

Since coming online with 150 tons in 2006, Timminco (Silicium Becanour) quickly ramped up production to 1,050 tons in 2007and is projecting 3,600 tons by 2010.

I'm liking this one as the next MEMC. But wait until it comes off its highs a little bit before jumping in.

Next week we'll take a look at some of the new silicon suppliers that have entered and will be entering the market, as well as the solar companies that are bringing part of the silicon supply chaing in-house.

Until next time,

Nick

PS. The Alternative Energy Trader's last solar play is up 64% in three short weeks. And even bigger gains are going to be made on the silicon supply side. These are cleantech stocks you don't want to miss. Become a member today and take advantage of the special Green Chip discount!

www.greenchipstocks.com

Geographically, it seems like a silly thing to say, but tectonic shifts in energy policy in places like India and Germany are pushing emerging Asian countries and old European industrial powers closer by the day.

In India, the government has set the goal of deriving 10% of the nation's power needs from renewable energy sources like solar photovoltaic cells by 2012.

That plan has drawn billions of dollars in investment to this country where 8% yearly GDP growth has brought huge energy shortfalls.

Internationally, the market for PV cells is expected to hit $40 billion in value just two years from now. In India, companies are jockeying to fulfill not only India's urban power needs but also to serve the developing country phenomenon of "leapfrogging," where rural areas skip fossil fuel power altogether and gain their first electricity from zero-carbon sources.

No fewer than 19 solar cell manufacturers are now operating in India, and many of them won't get off the ground to the level where investors can take profits.

But from across the world, one company is making steady advances into the Indian market, bringing along proven technology and unmatched expertise at implementing large-scale PV production.

They are engaged in the development, production and sale of both monocrystalline and polycrystalline PV cells, as well as "thin film" modules that can be produced through a similar process to a DVD.

Ease of production is key in India, where notoriously shoddy infrastructure and snail-paced permit processes have meant the death of companies that spread out too far.

Experience is a huge advantage from the get-go, and that's why we're moving on this company now.

This trans-global solar power player is the newest addition to the Green Chip International (GCI) portfolio, and we'll be releasing the company name and a detailed recommendation report exclusively to GCI members on Monday, April 7.

To make sure you don't miss a beat, click here to get in on GCI today.

Kind Regards,

Sam Hopkins
International Editor

Mostly though, we've discussed the various trading schemes being inaugurated and implemented around the globe. We used carbon markets as an indicator for companies that would make additional revenue from the commoditization of carbon.

The logic is that, as the price of carbon goes up, so will the perceived value of renewable energy companies that inherently reduce emissions via their day-to-day activities.

Until recently, I've been hesitant to discuss one of the more direct paths to carbon emission reduction because it involves cleaning up the dirtier side of power generation via fossil fuels.

Now, with the Alternative Energy Speculator well under way, we have an outlet to profit from opportunities that sometimes aren't considered green, but reduce harmful emissions nonetheless.

Plus, the domestic market for carbon credits is rapidly approaching being mandated and regulated. In fact, just last week Environmental Protection Agency Administrator Stephen Johnson said the agency will issue proposed rules "later this spring" on "the specific effects of climate change and potential regulation of greenhouse gas emissions from stationary and mobile sources."

So there's no time to waste. Even if the regulations aren't finalized by the end of Bush's term—which they probably won't be—all three presidential candidates seem to favor a mandated carbon reduction program.

Carbon Reduction Companies

The opportunity I want to cover is a company called CECO Environmental Corp. (NASDAQ: CECE).

CECO brings to the table more than 30 years of pollution control experience, in which they've designed systems to meet numerous OSHA and EPA air quality standards.

The company is attractive because of all the sectors it is capable of serving.

You see, emissions just don't come from power plants. They also come from drywall (gypsum) manufacturing, refining, rubber making and various metal industries, among others. Plus, the technologies used to reduce those emissions go way beyond solely carbon capture and storage.

And CECO works with companies in all of those sectors, in addition to the power generation side of things.

Just yesterday, the company announced 33 new orders, the largest of which was worth $2.5 million. Although the total price of the new orders wasn't disclosed, I put the value at no less than $9 million. Not bad for one day's work.

But new orders aren't the only indication this one is on its way up. Last week CEO Phillip Dezwirek picked up 40,000 shares at about $6.75 per share.

The last time he bought shares was all the way back in September 2005. He sold them less than seven months later for a 200% profit. I'm betting he has the same types of gains in mind this time.

And not only that, CECO recently acquired Fisher-Klosterman, Inc.—another supplier of pollution control equipment.

That acquisition brought with it Fisher-Klosterman's 40,000 sq. ft. sales and manufacturing facility in Shanghai, China. So in addition to cornering the domestic emission reduction market, CECO is now positioning itself for participation in the booming clean-up efforts in the Far East via the Clean Development Mechanism of the Kyoto Protocol.

I don't how high it's going to go. But it's climbed about 25% in the past five days, from $7.40 to about $9.20. Take a look:

The last time the insiders bought, they sold in the $12 range. But this one has seen levels above $15 as recently as last October.

Of course, there are a few more companies operating in this space that I'm following very closely. If they hit their target entry price, they could be entered into the Alternative Energy Speculator portfolio as soon as next week.

A carbon reduction play would be the most recent in a string of companies we've used to generate what we like to call "Clean-Air Cash-Outs," or the profit generated from successfully playing a cleantech company.

If you're interested, follow this link to learn more about "Clean-Air Cash-Outs."

Until next time,

Nick

www.greenchipstocks.com

Spanish wind farms churned out 9,862 megawatts of electricity last Saturday, which combined with lower Easter holiday energy use to give wind a 40.8% share of all national consumption.

No wonder Spain is considered one of the top four markets in the world for wind energy, according to Ernst & Young's Renewable Energy Attractiveness Index. Wind energy is now on par with the country's long-standing hydropower base, with towering turbines equaling dam generation for the first time in 2007.

Spain is zooming towards energy independence, aiming for 29 GW of wind capacity by 2016 and 40 GW by 2020, up from 13 GW today.

As for the Easter week's wind energy record of 40%, consider that the European Union mandate for clean energy grid contribution is 20% . . . by 2020!

Spain just proved that it can double that target from one source, twelve years ahead of time.

European history turned the Spanish crown from the head of a vast empire of international explorers and profiteers into a weakened monarchy beached on the shores of Britain and Ireland in the time of the Spanish Armada.

Today, Spain's new age of international power is starting with renewables.

The Royal Decree for a New Age of Wind Energy in Spain

The Spanish government issued Royal Decree 661 in 2007, letting wind energy system operators choose between a 20-year fixed payment of 7.3 cents per KW/h or a market-linked price that would earn a 2.9 cent premium for a 20-year period, on top of whatever the grid pays.

Madrid's commitment has stimulated a gaggle of companies to invest in wind energy not only in Spain but elsewhere in Europe, and the Madrid Stock Exchange is home to a growing number of publicly-traded Spanish wind pioneers.

In our new Green Chip International portfolio, we're holding two outstanding plays on Spain's strong wind-driven momentum, and we expect double-digit gains on these and upcoming plays in just a matter of months.

Within a few years these early-stage Spanish wind plays will be titans of the European energy scene.

And you can get first crack at them, along with many other global green plays, through Green Chip International. We'll be taking profits from one of the world's fastest growing industries on six of the seven continents. Follow this link to learn more.

Now, with light seemingly starting to shine at the end of the tunnel, it's time to revisit these funds that offer blanket coverage of an entire sector.

Last year, of course, clean energy exchange traded funds performed beautifully. Just take a look at a handful of funds along with their 2007 returns:

• PowerShares WilderHill Clean Energy (AMEX: PBW) — 58%
• First Trust NASDAQ Clean Edge US (NASDAQ: QCLN) — 48%
• Market Vectors Global Alternative Energy (NYSE: GEX) — 45%
• PowerShares Cleantech Portfolio (AMEX: PZD) — 43%
• PowerShares Global Clean Energy Portfolio (AMEX: PBD) — 26%

In 2007, the Dow Jones Industrial Average (DJI) returned just 6%.

This year, however, clean energy ETFs and the Dow have undergone a complete role reversal. The Dow has lost about 4%. The previously mentioned ETFs have lost anywhere from 14% to 31%.

But with credit worries beginning to ease—if only briefly—it may be time for these funds to take off again.

Holdings of Clean Energy ETFs

With clean energy technology rapidly developing, there is a plethora of angles to play. For the retail investor it may be hard to pick, with any degree of certainty, the winners in sectors diverse as solar, wind, geothermal, biomass, biofuel, green electronics, etc.

An ETF allows an investor to get broad exposure to a certain market.

The First Trust NASDAQ Clean Edge US Liquid Fund, for example, holds Cree Inc. (NASDAQ: CREE), First Solar, Inc. (NASDAQ: FSLR), Itron Inc. (NASDAQ: ITRI) and MEMC Electronic Materials (NYSE: WFR), among others.

So owning shares of that ETF will give you exposure to LED lighting, thin film solar, silicon supply, advanced meters and even water.

Of course, each fund offers different levels of exposure. The PowerShares WilderHill fund includes wind, geothermal and biofuel plays.

And the global funds will give you exposure to the big European wind and solar companies like Vestas (Copenhagen: VWS), Q-Cells (XETRA: QCE.DE) and Gamesa (MCE: GAM).

So if you're looking to get your feet wet in cleantech investments, an ETF could be right for you. The long-term upside is looking extremely strong, but you'll first have to figure out which ETF best suits your investment style.

But ETFs aren't for everyone. The same attributes that make them attractive to some can make them unattractive to others.

Here's what I mean.

ETF Drawbacks

Because they broadly track a specific market, ETFs are sometimes susceptible to overall market conditions.

So if wind-related stocks have a great week but solar stocks are down, your gains can sometimes be negated.

That's why Green Chip recommends going after individual companies. The upside, both in the short and long term, is significantly higher. And when you follow our recommendations, the higher risk that is associated with individual stocks is often negated, because we do the due diligence for you.

With Green Chip you get the gains of companies that are doing well without having to deal with the ones that aren't—because we've already weeded them out.

Naturally, some of the stocks we recommend are held by clean energy ETFs. But the point is, with us you only get the good ones.

While most sectors—and certainly the Dow—are down for the year, check out just a few of the companies that call (or have called) one of the Green Chip portfolios home:

• Applied Materials Inc. (NASDAQ: AMAT) — up 17% YTD
• Capstone Turbine Corp. (NASDAQ: CPST) — up 25% YTD

And the Alternative Energy Speculator has been on fire lately.

Take a look at Arise Technologies Corp. (TORONTO: APV), which has risen 62% in the past three days:

Or a Chinese solar company, my most recent recommendation, up 21% since last week.

Bottom line: As an investor, you have to decide what matters most to you. If you're happy with a diverse approach to the market with decent gains in the long term, then an ETF may be right for you. Just make sure you look at their holdings and how heavily vested the fund is in each stock.

But if you want explosive gains in the short to medium term with specific stocks that have already been researched and evaluated, then one of Green Chip's services may be what you're looking for.

To get a peek at the kinds of profits that could be awaiting you, I encourage you to read this report. It chronicles what is shaping up to be a massive profit-taking opportunity stemming from California's clean initiatives.

Until next time,

Nick

www.greenchipstocks.com

As the world's most vibrant and energy-intensive emerging market, but also one of the most politically repressive places on earth, the development of renewable energy in China presents a quandary for green energy investors.

You may not be a tree-hugger, but people who would prefer to place bets on over-the-counter renewable energy stocks over, say, a junior resource company of similar market cap often make their choices with a dose of idealism.

The same goes for government-led financial choices. As of Wednesday, German officials have broken off talks on renewable energy financing that were to take place in Beijing in May. According to German Development Minister Heidemarie Wieczorek-Zeul, "The two sides can only arrive at a solution through dialogue. Under these conditions, it's hardly possible to conduct government negotiations."

In 2007, Germany promised a 65.7 million euro ($105 million) loan to China for investment in renewable energy and efficiency improvements. Germany, which has become a clean energy dynamo in recent years with the world's largest market for solar energy, is a country China needs on its side financially and technologically.

Now the question for private investors is, to what extent will the Tibetan situation affect Chinese energy stocks?

All over the globe countries and companies are racing to reduce their emissions. So much so that carbon and other emissions now come with a price. In lieu of paying hefty fines or splurging for carbon credits, many companies are simply finding it more feasible to pony up the money and clean up their operations. And those massive clean-up efforts have stimulated billions--if not trillions--of cleantech spending. We've discovered one small company that is using the clean air to cash out.

Learn more.

German Financing Cut; Will Stocks Suffer?

Out of China in recent years we've gotten the stock offerings of several clean energy companies like Trina Solar, Yingli Green Energy and LDK Solar. The executives and bankers who brought those firms public were able to tap so much interest in drawing China away from coal-fired power that a slew of them went straight to the New York "big boards," listing on the NYSE and NASDAQ instead of messing with the over-the-counter bulletin boards and pink sheets.

As the Chinese economy has become the global investing story of the decade, the situation on the ground still has its independent ebbs and flows.

Those of us who have spent time in China's western reaches, which are historically dominated by some of China's fifty-plus ethnic minority groups, have waited with bated breath for events like this week's Tibetan uprising.

When embarking on the entirely worthwhile venture to become a globally-minded investor, political risk is foremost in the mind. You're banking on the management skills and market prowess of strangers in faraway lands, instead of strangers in your own country who may make you slightly more comfortable by conducting conference calls in your native tongue.

One thing is certain with regards to the current turmoil in China, which spreads beyond the Tibetan Autonomous Region into the provinces of Sichuan, Gansu and Qinghai, where I spent a month in 2005--Chinese solar companies are thousands of miles away.

China's industrial heartland is in the east, where pollution is so heavy and population is so concentrated that the Beijing government has been encouraging denizens of eastern provinces to pack their bags. They've launched a "Go West" campaign and built the world's highest-elevation railroad to traverse the Tibetan Plateau, among other things.

In fact, these measures and the steady influx of Han (ethnic Chinese) into formerly Tibetan-majority areas is a large part of the simmering resentment that is now boiling over in Lhasa and elsewhere.

Tibetans Need Renewable Energy

If anything, seeing subsistence farmers in huts and roadside encampments across the Tibetan countryside washing clothes in the river and burning noxious coal to power radio sets and cook food has made me more bullish on Chinese renewable energy.

It is Tibetans, Uyghurs, Monguors, Salars and dozens of other groups who stand to gain the most from solar energy and water procurement technology. They have the potential to leapfrog coal-based power systems, turning small villages into self-sufficient showcases of off-grid power.

And, like it or not, well-connected Chinese businessmen in faraway cities like Shanghai are in the best position to put China's far-flung minorities in the world's energy avant-garde.

We're watching this situation carefully for investment decisions in our Green Chip International service to see how Chinese solar energy companies will be affected. Stay tuned for the latest.

Kind regards,

Sam Hopkins

And so it went for the next few years. Whenever oil prices spiked, the stock prices of cleantech companies followed soon after.

It makes sense--at least initially. Oil was one of the cheapest energy resources on the planet, dwarfed by the cost of renewable energy technologies at the time.

So when oil prices went up, newer energy sources became all the more competitive. Simple.

The mistake, however, was using "energy" as a blanket category.

Now, with a more developed cleantech sector that is highly fragmented, is oil still the main indicator of the value of clean energy?

Oil Prices and Clean Energy

I'll take the copout and say to some extent.

This is because oil, as ubiquitous as it is, isn't a synonym for energy. For example, oil gets us to work, but it doesn't keep the lights on in the building.

By that metric, the price of oil can be used as a barometer for the value of biofuels, but not for the value of electricity-producing technologies like solar and geothermal.

Yet that doesn't seem to be the case either, because we've seen a meteoric rise in oil prices lately--68.5% just in 2007--but biofuel stocks haven't basked in the same glory. In fact, they've recently been in a downtrend.

So where does the notion that oil's price indicates the viability of other energy industries stem from?

Frankly, from a simpler time in the world's energy history. A time when the price of oil was even used to determine the economic viability of coal-fired power plants. A time when the dollar was still strong. A time free of the mortgage and credit crisis. And a time when cleantech was still nascent.

A Maturing Cleantech Industry

Before world markets entered this time of disarray, oil prices rose for a reason--like supply constraints or geopolitical tensions. Now we see oil rising for reasons like a weak dollar.

This simple observation lets us know that oil's price is currently experiencing a disconnect with its primary fundamentals. Those who sell oil have to charge a higher price to offset the ongoing devaluation of our domestic currency.

But, more importantly, many cleantech sectors have now graduated from nascence to adolescence. And as adolescents, they have indicators of their own, beyond the price of oil.

Solar's viability, for example, is contingent upon cost per watt, which depends on silicon prices and the technologies that are used to produce modules. Wind's feasibility, meanwhile, relies on the terrain and wind speeds of a proposed site.

What this all boils down to is the maturation of a new energy industry--one that is not subject to the arbitrary whims of floor traders.

We now have a renewables industry ready to take the training wheels off. Biofuels, wind power and solar each surpassed $20 billion in revenue last year. And each will at least double that total again in the next decade.

Plus, we're now seeing certain types of renewable energy capable of providing base-load power in some areas through major achievements in battery and advanced electronic technologies.

But despite the growing maturity of the cleantech industry, the perceived value of oil will still be used--to some extent--as a broad economic indicator for the entire energy sector. This can be attributed to oil's long-time reign as energy king.

Those in the know, however, realize that oil's days are numbered. Because no matter how many times oil breaks intraday price trading records, its prices, as well as its overall production, will peak eventually.

Ultimately, it will be oil's availability, not its price, that will have bearing on the deployment of clean technologies.

In the meantime, the value of renewables will rise for a litany of other reasons besides the price of oil.  And those that have the insight to invest in cleantech will profit handsomely.

Until next time,

Nick

www.greenchipstocks.com 

As Gates puts it, "Traditionally, the U.S. — because it's so attractive — has had this huge advantage that other countries bemoan. … Now, they celebrate the fact that we're kicking them out after giving them the world's best education."  With 60% of the students in the nation's leading computer science schools foreign-born, Gates has part of the picture figured out.

But the Silicon Valley lobbying group TechNet also put its yearly suggestions to Congress this week, with members like Cisco and Intel CEOs as well as financial heavy-hitters from JP Morgan listing clean energy technology as a top concern in this period of $110 oil.

Though the immigration issue was also on TechNet's wish list, green technology won the first spot.

In its "2008 Innovation Policy Agenda," TechNet asks Congress for a major national push with a Green Technologies Initiative.

TechNet's Green Technologies Initiative

Promote and highlight new technologies and innovation as a critical part of the solution to national security, economic competitiveness and global energy and environmental challenges and encourage a national commitment for investment in and adoption of innovative green technologies. In addition, encourage public policies, best practices and initiatives to spur the development and adoption of new technologies to enhance energy efficiency, encourage use of renewable energy and protect the environment.

Oftentimes, we find that some of the most arduous hills in the race for fossil-free energy are the very same ones that computer geeks have become experts at climbing.

The truth is, Silicon Valley is already solving energy problems.

In wind energy, for example, storage capacity is a huge issue, as we still have a long way to evolve in building efficient turbine units and grid mechanisms that can meter out capacity like locks on a canal.

It's a good thing then, that today's household devices use the smallest power generation and storage systems ever known to man.

Solar cells present another problem, as they're largely dependent on the supply of silicon, which of course puts solar energy in direct competition with the computer chip industry.

Thank God companies like AMD and Intel have been making smaller and more powerful microprocessors as a matter of course for 40 years now, cutting back on material use while enabling tiny chips to manage major energy applications.

So when Bill Gates asks for looser H-1B limits (now around 100,000 a year including exemptions), he should think of computer comrades of his own like Shai Agassi, the Israeli tech wizard who left the head of software development at German tech giant SAP to found Project Better Place.

Project Better Place is the nerve center of an ambitious and heavily-funded scheme to get 100,000 electric cars on the road in Israel by the end of 2011. The project is being subsidized and promoted by the Israeli government, but can you guess where it's headquartered?

Silicon Valley.

Twin International Bull Markets in IT and Clean Energy

There are already tens of thousands of IT professionals from foreign countries working in northern California and elsewhere in the United States.

When he acts as the mouthpiece of the nation's technology elite, Bill Gates has to address the fact that we are now in the throes of twin bull markets in energy and energy technology, and that the trends driving future profits are international in nature.

Here's a perfect example: This month, the San Francisco-based Cleantech Forum awarded its "Cleantech Leader of the Year" award to Persian Gulf monarchy Abu Dhabi's Masdar clean energy initiative, a city-scale zero-emissions plan being carried out in the desert with the help of MIT and other American tech stalwarts.

To advance the IT industry, clean energy technology must be a central element to any proposal, and cross-border endeavors like Project Better Place and Masdar should be strongly encouraged.

With proper planning we'll get competitive technologies and more profit plays as green energy technology moves forward.

Regards,

Sam Hopkins

Green Chip International

Once thought of as a way for the coal industry to mask its polluting nature, carbon capture is rapidly emerging as a viable technology. And as such, it's beginning to attract serious investment and could have implications that affect much of the energy sector.

In fact, an upcoming International Energy Agency (IEA) report estimating the costs that energy companies will have to pay to cut greenhouse gas emissions 50% by 2050 will cite carbon capture and storage (CCS) as the most important technology for emission cuts.

That preview of the report's finding was issued by IEA Executive Director Nobuo Tanaka to Reuters on Monday.

Of course, I'm still gung-ho on the advancement of renewable energy, but it's easy to see why CCS will have to play a large role in cleaning up the energy sector in the near- to mid-term. After all, the world still uses coal to provide about 40% of its electricity.

And that level is even higher in developing countries like China.

Carbon Capture and Storage

Until recently, CCS was dubbed unproved and too expensive. And I'll admit that I was one of the analysts who prematurely lumped it into those categories.

But costs are falling, and are now down to around $50 per metric ton of carbon captured and stored. At that level, the economic viability of CCS is held hostage by the going rate for a tonne of carbon, which is determined by carbon markets, like the EU ETS, that stemmed from the Kyoto Protocol.

Obviously, the future price of carbon is contingent upon the successful negotiation of successor to Kyoto that includes U.S. and Chinese participation. Keeping the cost of emissions high is vital to both the renewable energy and CCS industries.

But before I persuade you to jump on the growing CCS bandwagon, I must point out that not all estimates are as rosy as the IEA's. Royal Dutch Shell, for example, puts a $100 per tonne pricetag on CCS.

Nonetheless, if we're to meet the growing international demand for energy, coal is going to be a part of the mix. And if coal is to be used in a cleaner way, CCS will have to be used.

And getting in now on this nascent technology could provide nice returns to investors willing to take the risk.

That's exactly the aim of my new service, Alternative Energy Speculator. The goal is to take green investing one step further--and with a little more risk--by investing in emerging clean energy technologies and stop-gap technologies--like CCS--that are being used to clean up the fossil side of things. Many of the stocks recommended in this new service will either carry more risk or participate in sectors not covered by Green Chip Stocks.

Investing in Carbon Capture and Storage

Mitsubishi Heavy Industries (MHI) (Tokyo: 7011) is probably the technology leader in this space. They have developed a commercially available, post-combustion flue gas recovery system called the KM-CDR Process.

It was developed to run on natural gas-fired applications, but is in the demonstration phase of applying the technology to coal-fired plants.

In the past five years, MHI has constructed four major CO2 capture plants and they have another four in the pipeline. The original four plants were in Malaysia, Japan and India. The other four are being planned in China, India and the United Arab Emirates.

Of course, MHI isn't a pure CCS play and is already a well-established company the heavy-duty manufacturing industry. And while it could provide nice returns, I'd be on the lookout for a play that calls only the energy industry home.

If you're interested, NRG Energy, Inc. (NYSE: NRG) has partnered with technology company Powerspan to develop a commercial scale CCS facility for a coal power station in Sugar Land, TX, home to one of the largest coal plants in the country

To date, CCS has only been tested on coal plants no bigger than 5 MW. NRG's system would be applied to a plant emitting 125 MW's worth of emissions.

If successful, the NRG/Powerspan technology could evolve into an industry leader.

I also have small, pure-play CCS play well inside my radar. It could turn out to be a profitable play in the Alternative Energy Speculator.

In fact, a number of speculative energy plays are beginning to do fairly well. One concentrating solar power company in the Alternative Energy Speculator even popped as much as 13% in the past two days.

It is for that reason we've decided to take this new service public. To read more about it, follow this link to the Alternative Energy Speculator.

Until next time,

Nick

But with a recent sell-off occurring throughout the entire sector, I thought a broader snapshot of green energy stocks was required to unearth some bargains and to see where the industry is headed.

A Close Look at Three Green Energy Stocks 

The best place to start is probably with the stock that garners the most attention from Wall Street: First Solar, Inc. (NASDAQ: FSLR). In the last three months the stock has seen highs of $281 and lows of $165--a 41% discrepancy.

That 41% sell-off occurred in the four weeks spanning late December to late January. First Solar then traded flat for two weeks before regaining some steam. And since the first week in February the stock has actually gained 25%.

But if you pull the chart out to six months, you'll see the stock is still on a strong uptrend, going from $103.75 to $207.50 for a 100% gain. Take a look:

All of a sudden solar doesn't look so bad. But that's just a façade put on by a stock that gets the most investor and PR love. If you dig deeper you'll see many great companies that, despite good gains from September to late December, have actually traded flat or lost value in the past six months.

The first such case is Suntech Power Holdings Co., Ltd. (NYSE: STP):

And the second is SunPower Corporation (NASDAQ: SPWR):

What this presents is a serious buying opportunity. Suntech recently catapulted to the third largest manufacturer of solar cells in the world--based output numbers for 2007--taking over Japan's Kyocera. And SunPower's cells boast the highest efficiency of any widely available on the market.

Of course, there is a negative as well. SunPower and Suntech use silicon, which is currently in short supply, as a raw material. First Solar does not.

This has led, in my opinion, to a case of investor jitters that is reflected in the recent undervaluation of these companies.

But folks, the silicon supply crunch is a short-term issue that shouldn't and won't be reflected in long-term stock price. New silicon suppliers are coming online and existing suppliers are ramping up production. The shortage, by most estimates, won't outlast 2009 and won't drastically affect output until it's over.

As for the other metrics commonly used evaluate solar companies, including driving down costs, SunPower and Suntech are right on par. Both companies have the executive expertise and manufacturing know-how to lower cost per watt and continue the journey toward grid parity.

If you can stomach the volatility inherent in this type of market, it may be worth taking a look a these two companies. When the solar energy tax credits get passed--and they eventually will--buying these companies at current levels will prove to be a smart investment.

Plus, the solar industry is still expected to enjoy at least 25% annual growth rates through 2012.

More Green Energy Stocks

I told you some time ago that forestry companies would start to see some investment dollars flow their way for the development of cellulosic ethanol. And while we have seen scant evidence of that occurring, the most relevant news in this arena came just last week, when Chevron Corporation (NYSE: CVX) and Weyerhaeuser Company (NYSE: WY) announced the creation of a joint venture to develop ethanol from wood-based feedstocks.

The aim of the 50-50 venture, called Catchlight Energy LLC, is to research and develop cellulosic ethanol and to produce it economically viable way.

We're continuing to see a transition toward cellulosic ethanol as demand for the corn-based variety has perpetually driven up prices for its feedstock. Those rising prices have led to increased food costs and to hard times for livestock ranchers who must purchase the grain to feed their animals.

There's no word yet if Chevron and Weyerhaeuser will take their venture public but, either way, there are plenty of ways to invest in the cellulosic ethanol boom.

Some stalwart corn-based manufacturers are actively researching ways to enter the cellulosic market through university partnerships. And a handful of other smaller companies have been receiving Department of Energy grants to bring cellulosic up to a commercial level with a variety of feedstocks.

Another Emerging Green Energy Play 

Enzyme companies are also emerging as a way to play the green industry because one of the keys to driving down cost is finding an enzyme that can digest multiple types of sugars efficiently.

To date, no such enzyme has been discovered, but I have my eye on a few companies that are getting very close.

If you're interested in these types of speculative renewable energy plays, my new service Alternative Energy Speculator may be just for you. That service, coming out later this month, will take aim at delivering hefty profits from the renewable energy sector for those who have the stomach for a little more risk than we're usually willing to take.

The payoff will be huge, so keep an eye out for that service to debut in the coming weeks.

Until next time,

Nick

Sam Hopkins

The last week, however, has provided some insights about where the industry is heading and how investors like you can position themselves to get a piece of it. Here are the most recent carbon market developments concerning the international and domestic spheres.

Binding U.S. Emissions Targets

Though there was no mention of it on domestic news outlets, James Connaughton and Daniel Price, environmental and economic advisors to President Bush, said in Paris yesterday that the U.S. is ready to approve "binding international obligations" for reducing emissions.

In case you didn't know, we've been obnoxiously opposed to any kind of binding targets--like the Kyoto Protocol--until now.

Of course, U.S. acceptance of binding targets still comes with the caveat that developing nations share at least part of the ‘burden'.

And while getting developing nations to commit to binding emissions r