Green Stock Watch: High energy prices are wind in cleantech sails

The double-edged events in Libya have caused a spike in global oil prices that will slow growth at home and abroad, however renewed high energy prices also invigorate renewable clean power companies.

The more you look into it, the more you will realize that oil is the most replaceable of all commodities, via natural gas, methanol, ethanol, new biogas / biofuel technologies and even solar, wind, geothermal, conservation and energy storage, directly and via equivalent energy displacement.

This is good news for green power stocks, however any with weak coffers should move quickly to raise cash now, for peace is just as likely to break out as war, if not more so. Money may soon be more expensive, so CFOs and CEOs, start working overtime to have sufficient money raised in the next two to three months, to last two to three years if possible.

A few years back I called the 2008 top in oil prices, predicted it coming and announced its arrival after oil crossed the $140 mark. We're getting into frothy territory again, and a new prediction is likely coming very soon. Not sure how high this one's gonna go, but we're climbing the peak now:

5 year chart Brent Crude oil price


Events and human psychology will determine this coming top, yet it already looks probable that support after the next oil price downturn will be around $56, up from $42 during the most recent bottom. THIS is a third higher, so when oil is next near a bottom and everyone is barking "disinflation", just compare the current bottom to the bottom in the previous cycle, and make your calculations from there.

If the oil price goes through 140 and makes a new high above 160, then 56 would be likely support for the next recession. If the oil price falters around or below the 140 mark, we have the dreaded double top and the downside may be even more severe, possibly to 24 at the nadir.

The bulls will tell you that $140 will become the new support level, converting former resistance, but don't believe them. At that price the global economy would crash, which is good for neither sellers nor buyers. Traders will take the market down about four or five times faster than they take it up, so don't be shy about starting to take long oil profits soon.

It also seems rather early to short, with Libya onstage, Iran in the wings, Bahrain and Yemen on side stages. As the ancient Chinese proverb says, "May you live in interesting times!"


Perhaps 2011 is another Sell in May and Stay Away year, or maybe things are moving even faster. Stay tuned.


Middle East democracy uprisings related links:

Middle East Revolutions 2.0; Egypt and Tunisia Timelines Dec 2010 to Feb 2011

Heroes and Martyrs of 2011 Tunisia and Egypt Revolutions

Canada urges Libya to show restraint with democracy protesters

Will Arab Awakening "Day of Anger" spike oil and metal markets?

Protests expected in Algeria, Yemen, Libya, Bahrain, Jordan, Syria and Iran this Friday have the potential to cause a short-term spike in commodity prices, even though that some troubles can be reasonably predicted, and some would say are already priced in, though we've heard that before.

Here are a couple of links to follow short term and longer term movements in major commodities markets:

Oil price Brent Crude updated Bloomberg.com

Gold price live feed



Middle East democratic uprising links

List of countries with fake elections, rigged votes, false democracies

Egypt: Wael Ghonim deserves seat on Egypt's National Constitution Council

VICTORY!!! New Day Dawning in Egypt and Middle East

Egypt: How Facebook, YouTube, Google and Twitter revolutionized Egypt

Fareed Zakaria: Obama statement on Egypt unprecedented in recent decades

Blowin' In The Wind lyrics, by Bob Dylan

Blowin' In The Wind

Lyrics and Music by Bob Dylan

How many roads must a man walk down
Before you call him a man?
Yes, ’n’ how many seas must a white dove sail
Before she sleeps in the sand?
Yes, ’n’ how many times must the cannonballs fly
Before they’re forever banned?
The answer, my friend, is blowin’ in the wind
The answer is blowin’ in the wind

How many years can a mountain exist
Before it’s washed to the sea?
Yes, ’n’ how many years can some people exist
Before they’re allowed to be free?
Yes, ’n’ how many times can a man turn his head
Pretending he just doesn’t see?
The answer, my friend, is blowin’ in the wind
The answer is blowin’ in the wind

How many times must a man look up
Before he can see the sky?
Yes, ’n’ how many ears must one man have
Before he can hear people cry?
Yes, ’n’ how many deaths will it take till he knows
That too many people have died?
The answer, my friend, is blowin’ in the wind
The answer is blowin’ in the wind

Industries seeking alternatives to reliance on Rare Earth Elements (REEs)

In an informative article in today's Toronto Star, Clean Break columnist Tyler Hamilton, a very knowledgeable green power expert, explains that many clean power technology industries do have options not involving rare earth elements.

My feeling is that while it is true there are many green technologies that do not require rare earth elements, the countries and companies that have the option of using them will develop superior technology in the end. In the near term, the shortage may actually spur a whole new generation of LED lighting and other innovations, but in the medium to longer term I'd like North American companies to have secure access to rare earth elements.

The article is not yet online, however check TheStar.com tomorrow for it, and I may also post some quotes from it right here.

Wind Energy company news investing info

Windpower Companies Stocks Updates

A few news items that caught my eye recently:

Vestas Wind wins 2011 Zayed Future Energy Prize

Lincoln Electric System signs 20 year, 10 meg deal with Laredo

Wind energy proving to be a great solution for New Zealand

Spain's Iberdrola SA agreed to buy Brazil’s Elektro Eletricidade

Kevin Douglas, founder of Douglas Telecom, buying more American Superconductor stock

Suzlon rallies on 218 megawatt Brazilian sale

Wind Energy Stocks for 2011, Company Website Links

Publicly-listed Windpower Companies and Suppliers

AAER Wind Energy (TSX-V) Canadian windpower stock

Acciona Windpower (ANA.MC)

AeroVironment (AVAV) rooftop wind energy systems

American Superconductor Corporation (AMSC) wind and solar power convertors and superconductors

America's Wind Energy Corporation (OTC: AWNE)

A-Power Energy Generation Systems (APWR), formerly China Energy Tech

Babcock & Brown Wind Partners (ASX: BBW BBWPF.PK)

Boralex Wind Power (TSE: BLX) wind farm operator

Broadwind Energy Corp Official Company website (BWEN.OB)

China High Speed Transmission Equipment Group Co., (CHSTF) Ltd.

Cleanfield Energy Corp (TSX:AIR)

Clipper Windpower (CWPR.L) wind turbine manufacturer

Dakshidin Wind (DKSC) - RESTEC water pumping windmills

Duke Energy Corporation windpower and natural gas

EDF Energies Nouvelle (EEN.PA) english website

EDP Renovaveis (EDPR.LB) - Brazil and Iberia clean renewable energy producer

First Wind Energy (WNDY) company website, 2008 windpower IPO

Gamesa Corp (GAM.MC) wind company website in english

GE Power Wind Energy website

Greentech, Denmark-based windpower development company

Hansen Transmissions International NV (HSN) wind turbine gearbox manufacturer

Iberdola Renovables official company website in english

Itron.com (NASD: ITRI) Energy and Water Resource Management

Juhl Wind Inc. (JUHL.OB) - Community windpower leader

Kaydon Corp (KDN) - Leading manufacturer of bearings for wind turbines

Maxwell Technologies (MXWL) wind turbine ultracapacitors

Mitsubishi Heavy Industries, Ltd (MHVYF)

Nacel Energy (NCEN.OB) USA, Caribbean and Latin America wind power

Naikun Wind Energy (NKW) Canada-based wind power and natural gas

NextEraEnergy (NYSE: NEE) - Clean energy division of Florida Light and Power

Nordex Group (eiNDX1) - German Wind Energy Company

Novera Energy PLC (LSE:NVE) - UK wind power producer

Otter Tail Corporation (OTTR) wind tower manufacturer

Plambeck Holding (eiPNE3) - German Wind Energy Park and Biogas Plant Owner / Manager

REPower Systems AG (RPW.DE), German wind turbine manufacturer

SkyPower Wind Energy Fund

SkyPower.com - Canadian wind energy company

Suzlon Energy (SUZL) windpower company

Theolia (eQ18481) - France-based Windpower and Biogas power plant developer

TransAlta Corporation (TSX: T.TA) - This is the company that took over KHD, Canadian Hydro

Trinity Industries (TRN) wind energy tower manufacturer

Vestas Wind Systems (VWSYF)#1 windpower company

Welwind Energy Intl (WWEI.OB) developer of wind farms in China

Western Wind Energy (WND: TSX.V)

Wind Energy America (OTC:WNEA) USA wind farm developer

Windflow Technology Ltd (NZAX:WTL), New Zealand wind turbine designer / manufacturer

Xcel Energy Inc (XEL) diversified USA power producer, wind farm developer

Xinjiang Goldwind Sci & Tech Co - China wind turbine manufacturer, official company website

Zoltek Cos (ZOLT) - Carbon Fiber Manufacturer, Aerospace Composites stock



Green Energy Investing links:

Best Green Stocks website

Green Mutual Funds blog

Geothermal Power Stocks

Photovoltaic Solar Stocks

Canadian Wind Energy Atlas

Publicly-traded Rare Earth Elements stocks to watch

Rare Earth Minerals stocks, investing in Rare Earth Elements


Here is a list of publicly-traded Rare Earth Elements stocks:

Alkane Resource Ltd. (ASX:ALK, PK:ALKEF)

Arafura Resources Ltd. (ASX:ARU, PK:ARAFF)

Avalon Rare Metals Inc.(TSX:AVL, AMEX:AVL)

Canadian International Minerals Inc (CVE:CIN)

Commerce Resources Corp. (TSXV:CCE)

Frontier Rare Earths Ltd. (TSX:FRO)

Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF)

Greenland Minerals and Energy Ltd. (ASX:GGG, PK:GDLNF)

Hudson Resources Ltd. (TSX.V:HUD, OTCQX:HUDRF)

IBC Advanced Alloys (IBC)

Kirrin Resources Inc. (TSX VENTURE:KYM)

Lomiko Metals Inc. (TSX-V:LMR)

Lynas Corporation Limited (ASX:LYC)

Matamec Explorations Inc. (TSX.V:MAT, PK:MTCEF)

Medallion Resources Ltd (TSX-V: MDL)

Molycorp Inc (NYSE:MCP)

Navigator Resources Ltd. (ASX:NAV)

Quantum Rare Earth Developments (TSX.V:QRE)

Quest Minerals(QRM.V)

Rare Element Resources (TXS:C.RES)

Stans Energy Corp. (TSX: V.RUU)

Tasman Metals (TSM.V)



As of January 2011, here is a list of 17 Rare Earth Elements mining projects (TMR Advanced Rare-Earths Project Index), and the rare earth minerals mining companies that are behind these ventures (list courtesy of Resource Investor – News That Trades)

Bear Lodge (Bull Hill Zone) – Wyoming, USA : Rare Element Resources Ltd. (TSX.V:RES, AMEX:REE)

Cummins Range – Western Australia, Australia : Navigator Resources Ltd. (ASX:NAV)

Dubbo – New South Wales, Australia – Alkane Resource Ltd. (ASX:ALK, PK:ALKEF)

Hoidas Lake – Saskatchewan, Canada : Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF)

Kangankunde – Balaka, Malawi : Lynas Corporation Ltd. (ASX:LYC, PK:LYSCF)

Kutessay II – Chui, Kyrgyzstan : Stans Energy Corp. (TSX.V:RUU)

Kvanefjeld – Kujalleq, Greenland : Greenland Minerals and Energy Ltd. (ASX:GGG, PK:GDLNF)

Mount Weld – Western Australia, Australia : Lynas Corporation Ltd. (ASX:LYC. PK:LYSCF)

Mountain Pass – California, USA : Molycorp Inc. (NYSE:MCP)

Nechalacho (Thor Lake Basal Zone) – Northwest Territories, Canada : Avalon Rare Metals Inc.(TSX:AVL, AMEX:AVL)

Nolans Bore – Northern Territory, Australia : Arafura Resources Ltd. (ASX:ARU, PK:ARAFF)

Norra Karr – Småland, Sweden : Tasman Metals Ltd. (TSX.V:TSM, PK:TASXF, F:T61)

Sarfartoq (ST1 Zone) – Qaasuitsup, Greenland : Hudson Resources Ltd. (TSX.V:HUD, OTCQX:HUDRF)

Steenkampskraal – Western Cape, South Africa : Great Western Minerals Group Ltd. (TSX.V:GWG, OTCBB:GWMGF) & Rare Earth Extraction Co. Ltd.

Strange Lake (B Zone) – Quebec, Canada : Quest Rare Minerals Ltd. (TSX.V:QRM)

Zandkopsdrift – Northern Cape, South Africa : Frontier Rare Earths Ltd. (TSX:FRO)

Zeus (Kipawa) – Quebec, Canada : Matamec Explorations Inc. (TSX.V:MAT, PK:MTCEF)



Member companies of the Bloomberg Rare Earth Mineral Resources Index and their respective weightings:

Company Ticker Symbols Weighting (%)

Molycorp Inc. NYSE:MCP 16.4

Lynas Corporation Ltd. ASX:LYC, PK:LYSCF 15.0

Avalon Rare Metals Inc. TSX:AVL, AMEX:AVL 11.4

Rare Element Resources Ltd. TSX.V:RES, AMEX:REE 11.2

Arafura Resources Ltd. ASX:ARU, PK:ARAFF 10.0

Greenland Minerals and Energy Ltd. ASX:GGG, PK:GDLNF 6.7

Quest Rare Minerals Ltd. TSX.V:QRM, PK:QSURD 6.3

Frontier Rare Earths Ltd. TSX:FRO 5.9

Alkane Resources Ltd. ASX:ALK, PK:ALKEF 5.0

Tasman Metals Ltd. TSX.V:TSM, PK:TASXF, F:T61 4.6

Great Western Minerals Group Ltd. TSX.V:GWG, OTCBB:GWMGF 4.2

Navigator Resources Limited ASX:NAV 2.1

Matamec Explorations Inc. TSX.V:MAT, PK:MTCEF 1.2



Many Happy Returns in 2011!


(Note of Caution: Investing in individual equity securities is for high risk investors, and junior mining stocks have added speculative risk on top of that. Medium risk investors should seeking exposure to the industry may want to research and invest in resource funds with a significant Rare Earth Elements component, and even then as part of a widely diversified portfolio)