President Barack Obama and Green Technology Investment

1. Wind Power

Well, I don't believe that climate change is just an issue that's convenient to bring up during a campaign. I believe it's one of the greatest moral challenges of our generation.
- Barack Obama (2007)

If elected, Barack Obama will be the greenest president ever in the White House. His policies include:

1. Invest $150 billion over 10 years in clean energy.

2. Reduce carbon emissions 80 per cent by 2050.

3. Double energy research and development funding.

4. Create a Clean Technologies Venture Capital Fund, funded at $10 billion per year for five years.

5. Require that 25 per cent of electricity be from renewable sources by 2025.

Here, over several parts, is a brief guide to the investment implications for the cleantech sector.

Wind Power

Wind power is already seeing enormous gains in the US, and it is one of the sectors poised to make further big advances in the event of an Obama victory.

For example, a new report from US Department of Energy, "20% Wind Energy by 2030", presents a scenario whereby wind energy could provide 20 per cent of US electricity by 2030. In essence, wind power capacity in the US would need to grow from 11.6 gigawatts at present to more than 300 GW, at a cost of well over $2 trillion.

Oilman T. Boone Pickens has already announced plans for a massive wind farm in Texas, costing $10 billion to $12 billion, to be completed by 2014, and capable of supplying power to more than 1.3 million homes.

The leading US wind energy stock is General Electric, with 2007 revenues of more than $4 billion for this business, an eight-fold increase since 2002. The company is a world leader, and it is the dominant supplier in the US, which has become the world's fastest-growing market.

In 2007 it installed 2,342 MW of new capacity in the US - double the amount of the previous year - which was 45 per cent of the US total for that year. In the January-March 2008 quarter it supplied 442.5 MW of the total 1,400 MW of new capacity that was installed in America.

Some other stocks that stand to gain include:

American Superconductor has developed a variety of high-tech applications for the energy industry, and it has achieved particular success with its D-VAR technology for connecting wind farms to power grids.

Broadwind Energy manufactures components and equipment for the wind power industry through its subsidiary Tower Tech Systems.

Clipper Windpower manufactures wind turbines in Iowa and is also involved in promoting wind energy projects in Europe and America.

Composite Technology Corporation manufactures wind power turbines through its subsidiary DeWind Inc.

FPL Group is a giant Florida-based power utility, and the US leader in wind energy generation.

Kaydon Corporation, a manufacturer of specialized components for a variety of industries, with fast-growing demand from wind turbine companies.

Mass Megawatts Wind Power manufactures the MultiAxis Turbosystem, a wind power system that it claims enables power output at relatively low wind speeds.

June 18th, 2008