by Byron Elton, President and Chief Operating Officer, Carbon Sciences Inc.
In the 1970s the late Dr. Lewis Thomas published an influential essay that has become a scientific classic. In it, he described three types of medical technologies - non-technologies, which are caring and supportive; halfway technologies, which are expensive, risky and not especially effective; and decisive technologies, which are inexpensive, easy to deliver and solve the underlying problem
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A “halfway” technology for polio, for instance, was the iron lung; a cylindrical steel chamber that allowed patients whose respiratory muscles had been paralyzed by the disease to breathe, while a “decisive” technology was the polio vaccine.
Well, this otherwise simple, common sense statement, will have a big impact on the Green Energy movement, and has a whole lot to do with your Retirefunds and "all" investments in the USA (and around the world) for the foreseeable future. Here's why!
As President Obama prepares to attend the Copenhagen Summit, Cop15, with other world leaders, he will not be hampered in his promise of green house gas reduction in the U.S. by having to submit those proposed limits to Congress. Because of the EPA declaration, legal changes can now be made to reduce carbon dioxide and other green house gases mentioned in the declaration as they are now considered a threat to the health of Americans and therefore can be addressed merely by EPA regulations. Congress won't like it much, but the environmental movement will and so will your green energy investments like wind, solar and fuel cells. Call it an addition to the Obama Effect.
Now, when Obama visits Copenhagen, other countries looking for excuses, won't have the excuse that he can't get his promises past the U.S. Congress, because he doesn't have to. It is a catalyst for those other procrastinators (like Canada, China, India and Russia) to get on board the Green energy bandwagon.
Canada, however, may have more to worry about than most other countries. You see, when you sleep with an elephant, and the elephant roles over, you get squashed. I am speaking about "Cap and Trade" which is sneaking into the American lexicon as a mid term solution to Global warming. It is President Obama's mid term answer to the problem and American business may be more receptive to it than allowing the EPA a free hand in setting limits. It may well be that Cap and Trade is merely another attempt at American protectionism only this time, dressed in Green. Canada could be a big loser if Cap and Trade is adopted in the U.S. as Canadian suppliers of raw materials and energy end up paying carbon credits to American companies they are selling to or dealing with. More on this later.
For now, the sun is rising over a new Green Energy agreement in Copenhagen. An agreement, any agreement, will have a major affect on your investments in oil, coal, wind, solar, nuclear and fuel cell power. Chose wisely, but choose now.
No it's not drastic, but it is far and away more than any previous administration in the United States have ever committed to. A 17% reduction in CO2 levels by 2020, below the 2005 level. It's not Kyoto, but it is a solid commitment, and when the USA leads, everyone else is bound to follow. Even China, who has taken over the title as worlds biggest polluter this year (from the USA) is catching the drift with some promises of Carbon reducing policies of it's own.
Canada's Prime Minister as well as many other world leaders will also be in attendance at Copenhagen. Now you must ask yourself, what affect will this have on my Retirefund?
In a nutshell, it is a complete game changer and will have a huge affect on investments all over the world. If these leaders come to an agreement, no matter how small, on reducing their carbon footprint on this planet, it is the beginning of the end for some companies and industries and it is the beginning of great wealth and prosperity for other companies who embrace the Green Energy revolution that is just beginning. The COP15 summit is the catalyst which puts this revolution into overdrive. That's how much of a game changer it is.
At this writing, California is legislating that fully 20% of all energy produced in the State beginning in 2010, must come from renewable resources. Federally in the U.S., there is a strong movement to legislate a similar law for the entire Country of 15% of total energy being produced by renewable resources beyond 2010. Billions of dollars are in play. Wind and Solar companies are springing up like the oil derricks of the 1890's. The "hydrogen highway" is being built in California. Hydrogen fuel cells burning, at first, natural gas and eventually pure hydrogen, will eventually play the major part in the greening of our planet. This is no time to be a wallflower. If you are not invested in the green revolution, you will merely be a spectator in the game, which will be the greatest wealth building era since the industrial revolution.
Make no mistake (as President Obama likes to say) This is a game changer. If you are invested in coal energy, you should probably get out now! If you are invested in pure oil plays you still have some time. If you are piling your money into Wind and Solar companies, you should maybe take a double check on that. They will eventually only be bit players in this great game but they will gain significantly in the short to medium term. Hydrogen is the future of energy, no matter how you look at it, and Natural gas is a great store of hydrogen for fuel cells, which have the greatest potential to produce the most wealth. PEM fuel cells can be stacked and therefore, can produce energy at the back up generator level, and at the giant energy plant level. They have the capacity to actually replace large oil fired, coal fired, and even nuclear power plants.
There will be flashes in the pan, so to speak, of ideas that, at first seem like solutions, but that will peter out like a late night camp fire. Clean coal (an oxymoron - as there is no such thing as clean coal) is the obvious one. Corn ethanol is another. It produces at least the same or even more carbon in it's production, than it saves by it's use as a gasoline additive.
"Could be the largest economic opportunity of the 21st century." - Venture Capital Firm Kleiner Perkins Caufield and Byers
Do your homework and do it well before you invest, but don't sit on the sidelines of this great race. As Wayne Gretzky once said, "You miss 100% of the shots you don't take"!
Alvin Toffler, in his insightful work ‘The Third Wave’, pointed out that humanity has achieved three revolutionary shifts of civilization throughout history. Firstly, the Agricultural Revolution enabled humanity to accumulate much wealth. The Industrial Revolution made possible mass production of industrial products, and The Information Revolution transformed the ways people think, work, and enjoy life.
Now, we are witnessing the newest, most powerful revolution of all time: The “Green Revolution.” It will change the way we power this planet. It will change the way we live, work, travel and more importantly, from an investment point of view, the way we invest. The catalyst for these massive changes may be the COP 15 Climate Change meeting in Copenhagen on Dec 7th 2009.
Make no mistake. This is one of "the" most important international conferences of our lifetime. If agreements can be reached in even some basic areas being discussed, then this meeting will have as much impact on your life as the Industrial revolution had for your great grandfather. Strictly from a monetary point of view, it will dwarf the financial impact of the information revolution of the 20th century. We are already seeing major investment houses moving into the green energy sector in a big way.
This year, Wind and Solar companies have posted significant increases in their stock prices. So how can you benefit from this monumental shift in investment strategy when any company with even a chance to advance in this industry is making investors money? PEM fuel cells, that's where! Fuel cells burning, at first, natural gas, and eventually pure hydrogen. This the future of energy on this planet. Wind and Solar will be "bit players" in comparison!
For over 20 years a Canadian company has been developing PEM fuel cell technology and this year it began shipping various product to buyers in the U.S., Canada, India, Europe and soon China. This company is so entrenched in this industry that it holds hundreds of the original patents for the underlying technology and has spawned from it's ranks, other companies with offshoot technologies. Three of them are, Fuel Cell Technologies, Plug Power and Hydrogenics. They are often referred to as "Baby Ballards" after the original fuel cell champion, Ballard Power systems of Vancouver, British Columbia.
After Chrysler and Ford bought into Ballard in a big way, about 7 years ago, investors took notice and drove up the stock. Since then, because of the slow pace of the "Auto" part of the technology, investors lost interest and the stock price dove below $2.00 after Ballard sold off it's "Auto" technology to these industry players.
Investors have short attention spans, don't they? Sometimes I wonder if investors can see the big picture at all. Most are simply traders, and not investors. At this time in history, Ballard Power is a "diamond" in the rough of the green energy revolution, and investors who are paying attention stand to increase their wealth tremendously.
It is not in the auto industry that this company will dominate. It is in clean energy production in general, replacing major power plants with giant fuel cell stacks burning, at first, Natural Gas and eventually pure Hydrogen. It is in the propulsion systems of buses, forklifts, ships and trains that Ballard will eventually make it's very big mark in the Green Energy Space. It is also in back up power generation like that recently shipped to India for their wireless systems. 310 fuel cell generators are being shipped to India by Dec 31st. It is the start of an order for 10,000 fuel cell generators to one of the most dynamic growing economies on the planet. This contract alone could end up being 30,000 generators, and that is only "one part" of Ballard's expertise.
Hydrogen fuel cell cars? Possibly! Electric cars? possibly! Even if electric cars win out, where will the electrical power come from. It will come from power plants incorporating giant fuel cell stacks, manufactured by Ballard Power Systems, and replacing dirty Coal, Oil and even Nuclear plants.
Green energy is not the only green that will be produced by this sleeping tech giant. I have owned Ballard for over 9 years, and this year, because of their production in these areas, I increased my holdings tenfold. My money is where my mouth is, where is yours?
COP-15 ! Have you heard this term yet? Well you are certainly going to. It is the short title for the "Untied Nations Climate Change Conference", a meeting of heavy weights from around the world in Copenhagen on December 7th 2009. It will absolutely dwarf the Kyoto Accord and it's importance to our planet. The importance to the markets, and investors like us, cannot be overstated either. It is that important! Government and business leaders from 40 Countries are all involved.
The results of COP-15will win and lose fortunes for many investors. Now which camp do you want to be in, the winners or the losers. I thought so! Now think of a world where producers of fossil fuels, instead of being propped up by governments, will be penalized by governments. Have I got your attention yet? The Copenhagen Summit will convene on December 7th and you should mark this on your calendar.
(From DailyWealth) Everything is being reconsidered:
The way we create electricity
The way we power our vehicles
The way we store and buy our energy
The way we synthesize plastics
The way in which we build the buildings where we work and live
As a prelude to the UN Climate Change Conference (COP-15) in May, the "World Business Summit on Climate Change" brought together over 500 participants from 40 countries in Copenhagen at the same venue as the "BIG" Summit on Dec 7th. Here is a quote from one of the guest speakers attending this conference:
"There is not much time. We have to do it this year, not next year, this year. The clock is ticking and Mother Nature does not do bailouts"!Al Gore.
There were many "working groups" at this summit who brainstormed and came up with recommendations for the COP15 summit.
"De-Carbonizing power generation is essential to meeting emissions goals in 2050 and will make a large contribution in 2030."
Here is one from the "Value Chain" working group:
"Establish a transparent international standard for greenhouse gas measurement of products and services across value chains. Any standard needs to be simple, consistent, but nonrestrictive, for example setting minimum standards and common measurement methods".
From the "Aviation working group":
"Increase focus on solution industries, i.e. those industries that offer transformative technologieswhich can have a net positive impact on emissions"
Recommendations from the "road transportation group" seemed more ambiguous on the surface, but will have a huge impact on investors. Here is an excerpt of their recommendations:
"There is no silver bullet to reducing emissions from the transportation sector and many technologies will have to be developed and tested in parallel".
It is within this backdrop that the world will turn it's attention to the summit in Copenhagen on Dec 7th. What is decided there will not only affect the health of this planet, but the health of investors, pensions funds, and markets around the world, and more importantly from our point of view, your Retirefunds!
It is the future of energy that is at stake, and nothing less! This is the reason I have invested in companies like Ballard Power Systems of Vancouver as well as Natural Gas, solar and wind energy companies.
"Could be the largest economic opportunity of the 21st century." - Venture Capital Firm Kleiner Perkins Caufield and Byers
There won't be a bailout. There will be a colossal re-investment of the worlds resources into these green companies, and away from the carbon producing fossil fuels like coal and oil, and the companies that produce them. No one knows for sure just which green technologies will win out in their respective areas (power generation, construction, transportation, aviation etc) but rest assured, there will be massive investments in all companies who have even a hope of placing in this race.
Do you think this will impact your Retirefund? I don't think it will, I know it will!
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