Renewable hotties

With the announcement of a Carbon Pricing policy by the Government recently, combined with the formation of ARENA, a $3.2 billion agency to consolidate renewable energy industry support and given that the purpose of MacroBusiness is to give you the bigger picture, here is a (non-exhaustive) list and short summaries of renewable energy companies that are listed on the ASX and are likely to benefit (market price and/or bottom line).

Even before both announcements, the prices of these companies have experiencing substantial gains, as seen in the charts at the bottom of the post.

A more thorough evaluation of these companies will be forthcoming as the new carbon price changes their ability to raise funds and a probable increase in their Return on Equity (ROE) through increased profitability.

Carbon Energy (Code: CNX)
Carbon Energy’s market advantage lies in its proprietary underground coal gasification (UCG) technology, which transforms solid coal into gas in situ and optimises the amount of energy extracted from otherwise stranded coal resources.

Ceramic Fuel Cells (CFU)
Ceramic Fuel Cells Limited (CFCL) has developed solid oxide fuel cell (SOFC) technology to provide reliable, energy efficient, high quality, and low-emission electricity from widely available natural gas and renewable fuels. CFCL is developing SOFC products for small-scale on-site micro combined heat and power (m-CHP) and distributed generation units that co-generate electricity and heat for domestic use.

Enviromission (EVM)
EnviroMission started work on development back in 2001 with a search for the best possible site for the world’s first Solar Tower power station.

 A site was selected at Buronga in the southwest corner of New South Wales, on a former wheat and cattle station known in the district as Tapio Station, 23km north of Mildura. Whilst EnviroMission now expects the first Solar Tower will be developed in the USA, it is felt international development will provide important leverage to increase development prospects in Australia.

Dyesol (DYE)
Dyesol’s technology is based on the DSC, a 3rd generation photovoltaic technology. Compared to conventional silicon based photovoltaic technology, Dyesol’s technology has lower cost and embodied energy in manufacture, it produces electricity more efficiently even in low light conditions and can be directly incorporated into buildings by replacing conventional glass panels rather than taking up roof or extra land area.

Geodynamics (GDY)
Geodynamics Limited was formed solely to focus on developing renewable geothermal energy generation from hot fractured rocks (HFR) in Australia. Extraction of geothermal energy relies on existing technologies and engineering processes.  Geothermal is the only known source of renewable energy with a capacity to carry large base loads.

Petratherm (PTR)
Petratherm Ltd is an Adelaide based leading explorer and developer of geothermal energy actively involved in projects in Australia and overseas, being the first geothermal company to formally develop conventional, EGS and direct heat energy (supplying hot water) projects in Spain.  Most recently, Petratherm entered into a landmark, exclusive agreement with four key Chinese geological/geothermal institutions to undertake a co-operative assessment to identify prospective geothermal projects in China.

Petratherm’s flagship Paralana geothermal energy project site is adjacent to the Mt Painter region of South Australia’s northern Flinders Ranges. Last year, Petratherm and our joint venture partners completed the first of two deep wells required to begin creating a low-impact, fully operational geothermal energy pilot plant in 2011. The project was recently awarded a $62.8 million Federal grant.

Quantum Energy (QTM)
Quantum is one of Australia’s leading manufacturers of advanced renewable solar energy hot water, pool and building heating products.

The Quantum story is based on innovation and the quest to harness renewable energy to produce sustainable hot water. The technology has been progressively developed, and Quantum now  produces hot water heaters, pool heaters as well as residential, commercial and industrial building heaters.

Comparing the four most liquid (sic) listed renewable companies....

Disclosure: The content of this post should not be taken as investment advice or construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The views expressed are the opinion of the author only. The author does have positions in some of the securities mentioned. Any action that you take as a result of information or analysis is ultimately your responsibility. Consult someone who claims to have a qualification before making any investment decisions.

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Comments

  1. Carbon E Coyote

    Just to add to this, with Prince’s disclaimer as well, Australian Cleantech produces an index of all ASX-listed cleantech stocks (75 of them). The Index is dominated by SIMS (which is cleantech due to its recycling business). There’s over 10 listed geothermal companies, plus a range of CO2 offset companies like COZ & CCF. Watch them this morning.

    http://www.auscleantech.com.au/Pages/cleantech.html

    Just had a look at the market; all the Cleantechs are up; general market down.

  2. Montgomery Burns

    One question: Quantum sounds suspiciously like that company that Michael West used to write about back 7-8 years ago.

  3. Thanks Coyote – I’ve had a quick look at the index and its impressive – I wonder if an ETF would help in this regard?

    I’ve added a few constituents to my own watchlist.

    As we wait for the next earnings reports and firmer cashflows based on carbon price changes, a more fundamental look at some of the successful companies is warranted….

      • All legislation can be undone. Only constitutional changes cannot be undone.

        At any rate, even if that were true the Coalition can cancel all grants over night if they want to.

        I’ve added these to a watch list, going to save up and short the c*** out of them when the Coalition take over.

        • seen it coming

          You have already done your dough mate.In 2013 it will just add financially to your current scientific, moral and ethically bankrupt condition.

        • There is a very few reason why the carbon tax will be hard to undo. Firstly, the rise in pension and the tax threshold puts a huge hole in the budget, therefore undoing the tax will either leave a huge gap int he budget, or those benefits have to be rolled back. Running on a platform to rob from the pensioners and give to those who earn over $200K will be difficult.

          Secondly, the Green will still control the balance of power in the Senate, and the law will need to pass both the House and the Senate.

          Lastly, the government will have to buy up all the emission permits which is suddenly worthless. That will be horrendously expensive.

          So once it’s passed,, it’ll be here to stay.

          • At the Liberal Party Victorian State Council meeting in May, Tony Abbott made it quite clear that his agenda was to, in order of preference:

            a) repeal the legislation
            b) negate the impact (cost to $0)
            c) compensate those hit by the tax

            Who knows if he can actually do it, but that’s what he’s been talking about in order to remove the impost it is design to impose on business.

            Sure it’ll be a stretch but it’s not like the economy will be charging along anyways so people may well be paying attention to politicians again by then.

  4. I thought the government wanted to move away from picking winners & losers in the market?

    Yet again we see the government intervening in the market place but even worse creating a false imaginary new market based on science that is still very unproven. For every peer reviewed report you find supporting climate change you can find another equally reputable report contradicting the others results.

    • “For every peer reviewed report you find supporting climate change you can find another equally reputable report contradicting the others results.”

      Do you have a source to back this up? I have one that says otherwise from 2010.

      “Here, we use an extensive dataset of 1,372 climate researchers and their publication and citation data to show that (i) 97–98% of the climate researchers most actively publishing in the field support the tenets of ACC outlined by the Intergovernmental Panel on Climate Change, and (ii) the relative climate expertise and scientific prominence of the researchers unconvinced of ACC are substantially below that of the convinced researchers.”

      From the National Academy of Sciences of the USA: http://www.pnas.org/content/early/2010/06/04/1003187107.abstract

    • Folks, this post is about renewable energy companies and the effect of the carbon price policy, not about climate change/politics/etc.

      This is about how to position yourself financially – leave the ideology in another thread.