Weekly Investor Round Up
02/20/2009
SustainableBusiness.com News
BP (NYSE: BP) and Verenium Corporation (Nasdaq: VRNM) announced the formation of a 50-50 joint venture to develop and commercialize cellulosic ethanol beginning with a plant in Highlands County, Florida. Construction on that plant is expected to begin next year for completion in 2012. It is expected to produce 36 million gallon-per-year of ethanol from agricultural waste.
Fluor Corporation (NYSE: FLR) and Airtricity, the renewable energy division of Scottish and Southern Energy (SSE.L) have been granted an exclusivity award by Britain's Crown Estate to develop an offshore wind farm at Bell Rock off Scotland's Angus coastline. The proposed wind farm could have a total capacity of up to 700 megawatts (MW). The two companies previously collaborated on the develpment of the Greater Gabbard Offshore Wind Farm off the coast of Suffolk in England. Planned at 500 megawatts (MW) that project is the largest offshore wind farm currently under construction.
A new investment fund created by XShares Advisors gives exposure to the carbon market by holding futures contracts for European Union Allowances (EUAs). It's called the AirShares EU Carbon Allowances Fund (NYSE Arca: ASO). Although global economic downturn has slowed the growth of the carbon allowances market it grew roughly 80% last year to $100 billion dollars, and could skyrocket in the years ahead, if the U.S. institutes a cap-and-trade program for carbon emissions.
Two U.S. utilities announced the creation of solar programs. Western Massachusetts Electric Company (WMECO) filed a plan with regulators to begin developing up to 12 MW of solar power by 2012. Under Massachusetts' Green Communities Act, passed in 2008, utilities allowed to own up to 50 MW.
In Texas, major utility Oncor launched its Take a Load Off program, which offers cash incentives for homeowners, businesses and governments to add solar photovoltaic power systems. Oncor will pay an incentive of $2.46 per DC watt up to a maximum of $24,600 for each residential installation and up to $246,000 for all other installations.
Chinese solar company Suntech Power Holdings (NYSE: STP) verified a quarterly loss this week after warning last month that demand and prices for the company's products were falling. The company posted a loss of US$65.9 million, or $0.42 cents per American depositary share (ADS), compared with a profit of $50.6 million, or $0.29 cents per ADS a year ago.
Suntech also announced the acquisition of a minority stake in silicon producer Asia Silicon Co., Ltd. for approximately $8.1 million. In addition to securing supplies of the raw material for solar cell production, the move also reflects the opinion of some analysts that upstream companies in the solar industry--the makers of polysilicon and solar wafers--will fare better as the industry continues to be affected by dropping prices.
The quarterly report of wafer producer Renewable Energy Corporation ASA (REC.OL) provides further evidence of this trend in its 4Q report. The Norwegian company nearly tripled its year-over-year profits before taxes to US$224 million. This corresponded with a 27% increase in revenue approximately US$338 million for the quarter.
Fuel cell pioneer Ballard Power Systems (Nasdaq: BLDP) expects to turn a profit soon, the company's CEO told a group of investors on Wednesday. Ballard has forecast a 15% to 30% increase in 2009 revenue. The company has found a market for its products in India where they are being used to supply backup power to the nation's fickle electric grid.