Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



This Green Energy Play May Take off in 2014

Considering the President's pledge to cut greenhouse gas emissions 17% from 2005 levels by 2020, microturbines, which are really high-speed fuel turbines, may be about to score big points with investors looking to profit from Obama's climate plan. I'm extremely bullish on microturbines because of the ability to generate heat and provide electricity from mainly natural gas, but also diesel, hydrogen, propane, or even methane.

The idea of cogeneration power or combined heat and power is already very much proven, but the concept of using one power source for a one-two efficiency punch is finding new allure among utilities, commercial interests, investors, and policy makers, all seeking cost-effective, low-carbon energy solutions in a world trying to reverse global warming. This bodes well for microturbines because they produce the lowest emissions of any fossil fuel internal combustion system. Therefore the adoption of microturbines could lower state and regional SO2 and NOx figures. 

Don't let size fool you: Microturbines, roughly 15-300 kilowatts in size, require low maintenance since they have only one moving part. They can eliminate the need for industrial backup generators, including reciprocating engines used to create biogas. Due to their smaller, lightweight size they can be used in heavy-duty commercial hybrid vehicles and are scalable off the grid in order to help maximize energy production from landfill sites, wastewater treatment plants, and/or oil and gas sites while allowing heat from flaring to be used for energy, rather than emitted as a pollutant.

Capstone Turbine (NASDAQ: CPST  ) is a microturbine play I believe is undervalued with tens of millions of hours of operation across the globe. Capstone should benefit from new demand for onboard power from the marine industry thanks to wider adoption of liquefied natural gas as well as growing interest in the reuse of methane gas for energy from coal mine gas. Plus, an increased presence in the oil market is likely to help market penetration for Capstone since more and more E&P companies (including Chinese firms) are looking to be more energy efficient to keep costs down and meet emissions standards. 

Should OPEC be worried about this Buffett favorite?
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 06, 2014, at 7:21 AM, nightdiver wrote:

    What does the author think natural gas is? saying, "..natural gas....and even methane.." Maybe full knowledge of a subject would be a good thing when recommending someting that deals with the public's investment of personal fortunes. Natural gas is essentially pure methane.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2781055, ~/Articles/ArticleHandler.aspx, 9/4/2015 10:55:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

John Licata

John Licata is the Founder & Chief Energy Strategist of Blue Phoenix Inc. You can follow John on Twitter @bluephoenixinc

Today's Market

updated Moments ago Sponsored by:
DOW 16,167.72 -207.04 -1.26%
S&P 500 1,928.61 -22.52 -1.15%
NASD 4,706.45 -27.05 -0.57%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 10:37 AM
CPST $0.39 Down -0.01 -1.86%
Capstone Turbine C… CAPS Rating: ***