Investor Alert: Al Gore’s Speech ‘Unearths’ Big Opportunity to Make $$ With Geothermal Stocks
Submitted by EnergyTechStocks.com
Investors should ignore last week’s skeptical (and in some instances, mocking) news coverage of former U.S. Vice President Al Gore’s challenge to America to produce all of its electricity from renewable sources within 10 years.
Whether or not Gore’s goal is practical, because it’s Al Gore, the speech is certain to draw increased attention to solar, wind and geothermal power. While companies involved in developing each of these green power sources should benefit, the biggest beneficiaries should be geothermal firms. In part that’s because geothermal firms aren’t yet on most investors’ radar screens the way solar and wind firms are. More fundamentally, until technology improves for storing wind and solar-derived power, geothermal is the clean power source best suited for replacing baseload coal plants.
Indeed, as Dan Scotto, one of EnergyTechStocks.com’s resident electricity experts, noted in April, geothermal energy has the potential to meet 50% of the forecasted increase in electrical generating capacity over the next two to three decades, provided governments make a meaningful commitment – which, of course, is what Gore is proposing. (See Energy Analyst Dan Scotto: Geothermal Energy ‘Grossly Overlooked’ - Part 1 of 2)
Two companies investors might want to take a close look at are Ormat Technologies Inc. and Geodynamics Ltd. Ormat trades on the New York Stock Exchange, while Geodynamics trades in Australia. As EnergyTechStocks reported two weeks ago, both look like they may be worth owning right now. (See Investor Alert (Part 2 of 2) – Stocks To Think About Buying Right Now: Ormat And Geodynamics)
Scotto too is high on Ormat, plus another company that trades on the Toronto exchange, US Geothermal Inc.
Waterfurnace Renewable Energy may be another way to play the geothermal theme. Traded on the Toronto exchange, this company, formerly called WFI Industries, makes geothermal heat pumps. As EnergyTechStocks reported last month, Waterfurnace’s profits keep rising despite the housing market crisis. (See As Only Quick Fix, Expect Energy Efficiency Providers To Surge – Watch Tanfield, WFI and Pursuit - Part 3 of 3)
Yet another way to play the geothermal sector may be through Glitnir banki hf of Iceland, which trades on the OMX Stock Exchange. Earlier this year Glitnir said it plans to invest $1 billion in geothermal projects in the U.S. over the next 10 years. (See 10 Companies That Appear to Have a Chance to Hit It Big – #5 Glitnir banki hf)
Ironically, Al Gore could find himself in bed with ExxonMobil and other major oil exploration and production companies. That’s because their oil drilling expertise could be just what’s needed to develop geothermal prospects all over the world.
For more on why new technology is raising the odds for geothermal power to be a huge contributor to clean electricity generation all over the world, see Editor’s Choice: Looking For the Next Hot Investment? ‘Hot Dry Rocks’ Looks Like it Could be a Real Gusher.)
