investing

Good big-picture view of the emerging cleantech market

I found this video, from an NDN event called “Understanding the Cleantech Investment Opportunity,” intensely educational (warning: it’s over an hour long):

Geothermal power: a core climate solution

While wind and solar get the media attention of a sexy starlet, good old geothermal power is treated like an aging character actor.

But geothermal energy is, in fact, sizzling hot these days. Big-time investors from Warren Buffet to Goldman Sachs to Morgan Stanley to Google have begun investing:

In 2007, private equity firms invested more than $400 million in geothermal energy, which is derived from hot water under the Earth's surface and can be used for space heating or generating electricity.

Why the interest in a form of energy that President Bush repeatedly tried to zero out of the Department of Energy Budget? One reason is the soaring cost of conventional power like coal and nuclear. Another is the growing awareness of just how much is zero-carbon electricity will need in coming decades.

Social concerns complicate an issue that, for scientists, is a no-brainer

A couple of months ago, I wrote a piece, now posted at Seed, about a financial mechanism for reducing deforestation and degradation (REDD) and vaster territory it will likely prime for pricing ecosystem services.

It's fun to watch the story evolve, as now we're seeing the U.K.-based Canopy Capital sign an agreement to protect a 371,000 hectare chunk of tropical forest in Guyana -- in advance even of a market infrastructure to value all the services provided by this land.

For the most part, I see action in this direction as a good thing. Certainly the climate scientists, conservationists, and environmentalists who support "natural capital" schemes have their heads and hearts in the right place. But in the course of reporting for the story, I uncovered a tier of concerns missing, for the most part, from popular media coverage of the subject. Indigenous rights groups and NGOs are highly concerned [PDF] about the implications of what amounts to leasing their land to foreign investors.

Private equity firm buys rights to rainforest reserve’s environmental services

This picture of what appears to be an insect with rainbows flying out its butt was taken in Guyana.

There are untold, untapped, unknown chemistries created by millions of years of evolution harbored in what remains of the planet's biodiversity. This is a vast storehouse of information, which would provide humanity with centuries of medicines and other benefits if we can just find ways to preserve it.

We can't let our biodiversity disappear -- one interesting (and gross) example of its importance is in this video I found on YouTube, documenting one of the unending evolutionary struggles between lifeforms. We are also locked in an evolutionary struggle with microbes. Many of today's most important medicines got their start in nature. Penicillin and its derivatives, for example, came from a mold.

Mongabay has a hopeful article about an equity firm betting on the future:

"How can it be that Google's services are worth billions, but those from all the world's rainforests amount to nothing?"

Rising cost of oil pushes value of the dollar down

Bloomberg reports:

Crude oil may reach a record $130 a barrel this year because pension funds are investing more in commodities, said Pierre Andurand, the chief investment officer of BlueGold Capital Management LLP, a hedge fund ... "Next year, oil may rise even further to $150 a barrel."

Okay, this is a hedge fund guy who is betting the ranch on oil and probably doing his part to drive up prices. But at the end of the day, this is an issue of fundamentals -- supply and demand:

Oil companies such as Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc are finding it tougher to replace their findings and are drilling for harder-to-reach deposits while energy demand and crude prices surge to records.

Another little-discussed factor in the run-up of oil prices is the run-down of the dollar, and with it, U.S. living standards compared to the rest of the world. Thank you so much, President Bush!

The dangers of funding new coal-fired plants

Indeed. This paper (PDF) on the risks of investing in new coal-fired power plants is worth reading.

Billionaire Branson regrets mindless biofuel support

Time was when biofuels, including corn-based ethanol, had no stauncher supporter than Richard Branson, the U.K. airline and entertainment magnate. Now, according to the BBC, he "regrets his investments in biofuels on economic and environmental grounds." In the above video, the billionaire deplores the lameness of corn ethanol. For the record, I think he’s being […]

Another day, another trillion dollars for the clean-tech industry

It seems that a day doesn't slip by without someone raising the stakes in the alternative-energy poker game.

The most recent bombshell wager: Cambridge Energy Research Associates report that alternative energy investments will -- hold on to your hats! -- top $7 trillion by 2030. That's an audacious number by any measure, and normally it would be enough to suck the oxygen right out of a convention of wind-farm enthusiasts. But that's not the half of it. The most startling aspect of the report is that it barely raised a ripple in the investment community.

And why should it?

Q&A with Eric Janszen on whether an alt-energy bubble is in the making

Eric Janszen, the founder and president of iTulip.com, recently argued in Harper's Magazine that the alternative energy segment is a prime candidate for a massive asset bubble, potentially dwarfing both the dot-com and housing bubbles. I wrote about Janszen's prediction last week. This week, Janszen joins us for a question-and-answer follow-up.