Investments in Alternative Energy

It is possible to have a portfolio which profitably (that's the key word, is it not?) invests in alternative energy funds. “Green” energy production is expected to be a multi-billion (in today's dollars) industry by 2013.

The most recently developed wind-turbine technologies have brought us wind-produced energy which is more cost efficient as well as more widespread. More state-of-the-art wind energy technologies are typically more market competitive with conventional energy technologies. The newer wind-power technologies don't even kill birds like in days of old! Wind energy production is a growing technology, and companies engaged in it would make up an excellent part of a growth or aggressive growth portfolio.

Next to consider are solar cell, or photovoltaic cell, technologies. These are to be found implemented in pocket calculators, private property lights, US Coast Guard buoys, and other areas. More and more they find their way onto the roofs of housing and commercial buildings and building complexes. Cost is falling. Their energy efficiency (the ratio of the amount of work needed to cause their energy production versus the actual energy production) is steadily on the rise. As an example, the conversion efficiency of silicon cells has increased from a mere four percent in 1982 to over 20% for the latest technologies. Photovoltaic cells create absolute zero pollution as they are generating electrical power. However, photovoltaic cellls are not presently as cost effective as “utility produced” electricity. “PV” cells are not [capable at present for producing industrial-production amounts of electricity due to their present constraints on space. However, areas where photovoltaic cell arrays could be implemented are increasingly available. In sum, costs are going down while efficiency is rising for this alternative fuel technology.

Many alternative energy investment portfolio advisors are confident that alternative energies derived from currents, tidal movement, and temperature differentials are poised to become a new and predominant form of clean energy. The French are actually fairly advanced at hydro power generation, and numerous studies are being made in Scotland and the US along these sames lines. Some concerns center around the problems with the deterioration of metals in salt water, marine growth such as barnacles, and violent storms which have all been disruptions to energy production in the past. However, these problems for the most part seem to be cured through the use of different, better materials. Ocean-produced energy has a huge advantage because the timing of ocean currents and waves are well understood and reliable.

Investments in hydro-electric technology have grown in the last two decades. Hydro-electric power is clean; however, it's also limited by geography. While already prominent as power generation, the large, older dams have had problems with disturbing marine life. Improvements have been made on those dams in order to protect marine life, but these improvements have been expensive. Consequently, more attention is now being paid to low-impact "run-of-the-river" hydro-power plants, which do not have these ecological problems.

The reality is, the energy future is green, and investors would do well to put their money out wisely, with that advice in their minds.

Wind Power as a Viable Solution to Meeting Alternative Energy Needs

Although it is much less expensive to initially get hooked into the local electric company's grid than it is to set up and hook into wind turbines, in the long run one saves money by utilizing the wind for one's energy needs—while also becoming more independent. Not receiving an electric bill while enjoying the advantages of the modern electrically-driven lifestyle is a wondrous feeling.

Electric bills and fuel bills are rising steadily—but the cost of wind turbine energy is zero, and the cost of installing and hooking up a turbine is steadily coming down as demand rises and more commercial success is realized by various companies producing the turbines and researching technologies to make them ever more efficient. In addition, people are moving away from the traditional electric grids and the fossil fuels for personal reasons including desire for greater independence, the desire to live remotely or rurally without having to “go primitive”, political concerns such as fears of terrorist strikes on oil fields or power grids, or concerns about the environment. Again, this motivation to get away from the traditional energy sources is the same one that causes people to seek the power of the wind for their energy, giving more business opportunities to profit from wind turbine production and maintenance, which drives their costs down for the consumers. In nearly thirty states at the time of this wri ting, homeowners who remain on the grid but who still choose to use wind energy (or other alternative forms) are eligible for rebates or tax breaks from the state governments that end up paying for as much as 50% of their total “green” energy systems' costs. In addition, there are 35 states at the time of this writing where these homeowners are allowed to sell their excess energy back to the power company under what are called “net metering laws”. The rates that they are being paid by the local power companies for this energy are standard retail rates—in other words, the homeowners are actually profiting from their own energy production.

Some federal lawmakers are pushing to get the federal government to mandate these tax breaks and other wind power incentives in all 50 states. Japan and Germany already have national incentive programs in place. However, “A lot of this is handled regionally by state law. There wouldn't really be a role for the federal government,” the Energy Department's Craig Stevens says. And as might be imagined, there are power companies who feel that it's unfair that they should have to pay retail rates to private individuals. “We should [only have to] pay you the wholesale rate for ... your electricity,” according to Bruce Bowen, Pacific Gas & Electric's director of regulatory policy. However, the companies seem to be more worried about losing short term profits than about the benefits, especially in the long run, of the increased use of wind turbines or wind farms. Head of the Center for Energy Efficiency and Renewable Technologies of California V. John White points out, “It's quality power that strengthens the grid.”

Some Suppliers of Alternative Energy

Amelot Holdings is a company which presently specializes in the development of biodiesel and ethanol plants throughout the US. Amelot's objective is to establish relationships between various suppliers of alternative energy who are biodiesel and ethanol researchers or producers to further their ends with long-term profitability and growth in mind. Amelot furthers the cause of these alternative energy suppliers through the formulation of joint ventures, mergers, and construction contracts.

Environmental Power is an alternative energy supplier that has two subsidiary companies. One of these is Microgy, which is Environmental Power's research and development arm. Microgy is a developer of biogas facilities for the cost-effective and environmentally clean production of renewable energy derived from food and agricultural waste products. These biogas fuels can be used in a number of different applications. They can be used in combustion chamber engines, used directly to make fossil fuel reliance less of a need, or cleaned up to meet natural gas standards and then piped to offices or homes for heating. Environmental Power's other subsidiary is Buzzard Power. Buzzard has an 83 megawatt power facility which generates green energy from mined coal waste. Environmental Power says of itself, we have a long and successful history of developing clean energy facilities. Since 1982 we have developed, owned and operated hydroelectric plants, municipal waste projects, coal-fired generating facilities and clean g as generation and energy recovery facilities. We are proud to have a management team and board of directors comprised of leaders from both the public and private sectors, including the energy, agriculture and finance industries.

Intrepid Technology and Resources, Inc, is a company that processes waste into natural gas as an alternative source of energy. The company's vision centers on the fact that the US produces two billion tons of animal waste every year, while at once the US' supply of natural gas is dwindling. ITR builds “organic waste digesters” local to sites of organic waste. These facilities produce, clean, and distribute the methane gas from the organic waste; methane gas is a viable alternative to natural gas. ITR is presently operating in Idaho with plans for national expansion.

Nathaniel Energy is a company with the objective of protecting the environment and minimizing total cost of business ownership. The Nathaniel Energy Total Value Preservation System (TVPS) gives companies unique benefits through Nathaniel's recognition of the alternative energy potential of materials that are usually seen as nothing more than waste or pollutants. Nathaniel Energy's technology allows it to extract and transform into alternative energy virtually all of the potential energy locked in waste materials. All of this is produced at almost no additional cost beyond what a company would have had to spend in order to install pollution control and prevention systems. Nathaniel Energy's innovative TVPS recovers valuable resources which other processes fail to. Throughout the entire process, the maximum amount of valuable material is recovered for reuse, which results in lowered costs and environmental protection. Usual pollution cleanup and control processes treat these materials as mere contaminants tha t are either destroyed or discarded. The TVPS therefore decreases the total cost of business ownership through the provision of an additional stream of income.

Pursuing Alternative Forms of Energy

Record high prices at American gas pumps and continued trouble-brewing in the Middle East, Nigeria, and other areas of importance to the oil-driven economy have made it clear to Americans that we are in need of developing many new avenues of energy supply and production. In short, we need to reduce our dependency on oil, for it is ultimately finite and, frankly, the cheap sources of oil (not all oil—just the stuff that is cheap to remove from the earth) are running out. Energy consultants and analysts are insistent that cheap oil has “peaked” or is very soon going to peak. What this means for us is an expensive future—unless we can find new sources of powering our mechanized and electronic civilization, new sources which are alternatives to oil.

We must also switch to alternative forms of energy because our present forms are too damaging to the atmosphere. While this write does not believe that the global warming trend is much, if at all, sustained by the activities of mankind (in short, it's a natural cycle and there's nothing we can do about it except prepare for the effects of it), we certainly do contribute at present to the destruction of the environment and to things like air pollution with our energy sources as they are. Coal is another source of energy that we need to wean ourselves off of—again, it is finite, and it is filthy, and the mining of it is dangerous and environmentally disruptive. We can also explore new, streamlined methods for producing electricity that we presently generate so much of via hydro-power so that we are less disruptive of the environment when we have need of constructing things such as large dams.

Developing nations which have turned industrialized in recent decades especially will need the benefits of alternative energy research and development, for they are presently doing much more environmental damage than the United States. The United States, Japan, and some European nations have been implementing studies into and programs for the development of alternative energy sources, and are therefore already leading the way in doing less environmental damage. The developing nations such as China and India need to look to Japan and the West as examples of what research and development to give government backing and private investment currency to. We could also add great robustness to our own economy by being at the forefront of such alternative energy sources development and then marketing the technologies and services to nations like India, China, Brazil, and so on and so forth.

Biofuels from things like “supertrees” and soybeans, refined hydroelectric technology, natural gas, hydrogen fuel cells, the further building of atomic energy plants, the continued development of solar energy photovoltaic cells, more research into wind-harnessed power—all of these are viable energy sources that can act as alternatives to the mammoth amounts of oil and coal that we presently are so dependent on for our very lifestyles. The energy of the future is green.

University Research into Alternative Energy

Decades of tree and biomass research jointly conducted by Florida Statue University and Shell Energy have resulted in the planting of the largest single “Energy Crop Plantation” in the entire United States. This Plantation spans approximately 130 acres and is home to over 250,000 planted trees including cottonwoods (native to the area) and eucalyptus (which are non-invasive) along with various row crops such as soybeans. This organization of “super trees” was brought into being as a result of the University's joint research with other agencies including Shell, the US Department of Energy, the Common Purpose Institute, and groups of various individuals who are working to develop alternative energy sources (those not dependent on fossil fuels) for the future. This research is focused on the planting and processing of biomass energy supplies from fast-growing crops known as “closed loop biomass” or simply “energy crops”. The project seeks to develop “power plants” such as wood-pulp or wood-fiber providing plant s; clean biogas to be used by industries; plants such as surgarcane which can be used for ethanol development; and crops such as soybeans for biodiesel fuel production.

University involvement in alternative energy research is also going on at Penn State University. At Penn State, special research is focused on the development of hydrogen power as a practical alternative energy source. The researchers involved are convinced that mankind is moving toward a hydrogen-fueled economy due to the needs for us to reduce air pollution and find other sources of energy besides petroleum to power up the United States. Hydrogen energy burns clean and can be endlessly renewed, as it can be drawn from water and crop plants. Hydrogen power would thus be a sustainable energy resource to be found within the US' own infrastructure while the world's supply of (affordable) oil peaks and begins to decline. The University seeks to help with the commercial development of hydrogen powered fuel cells, which would be usable in place of or in tandem with combustion engines for all of our motor vehicles.

When President Bush recently announced his alternative energy initiative, he determined that the government would develop five “Sun Grant” centers for concentrated research. Oregon State University has the honor of having been selected as one of these centers, and has been allocated government grants of $20 million for each of the next four years in order to carry out its mission. OSU will lead the way in researching alternative energy as it represents the interests of the Pacific Islands, the US' Pacific Territories, and nine western states. OSU President Edward Ray says, the research being conducted through OSU’s Sun Grant center will contribute directly to our meeting President Bush’s challenge for energy independence. Specific research into alternative energy being conducted at OSU by varios teams of scientists right now include a project to figure out how to efficiently convert such products as straw into a source of renewable biomass fuel, and another one aimed at studying how to efficiently convert woo d fibers into liquid fuel.

Resources for Alternative Energy

There are many different forms in which alternative energy is available.

One of these is solar power. Solar power is driven by photovoltaic cells, and these are progressively getting less expensive and more advanced. Solar energy power can be used for electricity, heating, and making hot water. Solar energy produces no pollution, as its input comes completely from the sun's rays. However, much more work still needs to be done in order for us to economically harness the sun's energy. For the time being, the resource is a little too conditional—storage batteries are needed to be used as backups in the evenings and on inclement days.

Wind energy has become the most-invested-in (by private investors and governments together) alternative energy source for the time being. The great arrays of triple-bladed windmills are being placed all over as “wind farms”, to capture the motion of the wind and use its kinetic energy for conversion to mechanical or electrical energy. Of course, there is nothing new about the concept of a windmill for harnessing energy. Modern wind turbines are simply are more advanced variations on the old theme. Of course, the drawback to wind energy is...what do you do when there is a calm, still day? Needless to say, during these times the electric company kicks in for powering your home or office. Wind energy is not altogether independent.

Hydroelectric energy is available as a source of alternative energy, and it can generate a substantial amount of power. Simply put, hydroelectric energy uses the motion of water—its flow in response to gravity, which means downhill—to turn turbines which then generate electrical energy. Needless to say, water is ubiquitous; finding sources for driving hydroelectric turbines is, therefore, not much of a problem. However, hydroelectricity as a source of alternative energy can be complicated and expensive to produce. Dams are often built in order to be able to control the flow of the water sufficiently to generate the needed power. Building a dam to store and control water's potential and kinetic energy takes quite a lot of work, and operating one is complex as well,and conservationists grow concerned that it. Of course, a dam is not always needed if one is not trying to supply the electrical needs of a city or other very densely populated area. There are small run-of-river hydroelectric converters which are goo d for supplying neighborhoods or an individual office or home.

Probably the most underrated and under-appreciated form of alternative energy is geothermal energy, which is simply the naturally-occurring energy produced by the heating of artesian waters that are just below the earth's crust. This heat is transferred into the water from the earth's inner molten core. The water is drawn up by various different methods—there are “dry steam” power plants, “flash” power plants, and “binary” power plants for harnessing geothermal energy. The purpose of drawing up the hot water is for the gathering of the steam. The Geysers, approximately 100 miles north of San Francisco, is probably the best-known of all geothermal power fields; it's an example of a dry stream plant.

How to Seek Grants for Alternative Energy R & D

If you are someone who wishes to begin researching and developing alternative energy technologies and you would want to be set up as a not-for-profit organization or entity, you will want to look into getting government grants, on both the state and the federal levels. Government grants for alternative energy research and development have been highly touted by politicians on local, state, and federal levels in recent years, all the way up to the President himself. This is due to the fact that we now recognize as a society that we need to seek out and develop alternative energy sources to those of the fossil fuels that we presently depend upon, as these fuels are not only slowly but surely running out (at least cheap access to digging them up is running out), but also damaging to the environment and air quality.

There is a fairly vast array of government grant programs available for you to check into. The great and most important thing to keep in mind about a government grant is that it's essentially free money. It is not a loan, you don't pay any interest, and you don't ever have to give the money back. However, qualifying for these grants, as you might imagine with something involving the government and free money, has quite a lot of restrictions attached to it. Not only is qualification based on purpose and need in the eyes and opinions of government bureaucrats, but just because you qualify does not mean that you necessarily get the grant. As Marshall McLuen put it, “the medium is the message”. The fact of the matter is that it is typically easier to apply for and qualify to receive a business loan—but then, that would not be free money, that would be something you owed to someone, and with interest on top.

There are professional grant writers who know how to write proposals in such a way that they get around the heavy load of restrictions set up by the government, and you might need to resort to one of these. Even governments employ professional grant writers to seek money from other branches of the government, such as a country government needing funding from the state or the federal government. These people also keep abreast of what government grants are still or newly available and what ones have been removed from the table. It's an intricate web, so one must not get tangled up in when seeking needed financial backing for alternative energy research and development. In fact, it is so complex that in the last decade or so the ranks of profession writers, as both individuals and as entire companies, have swelled. It is a profitable business—and this can make it fraught with illegal actions and controversial claims.

Nevertheless, each year there are many thousands of grants awarded throughout the United States for the purpose of helping the public. And again, with the government endorsement of grant money to be given to alternative energy researchers, you could very well get what you seek.