The bad news abounds.
Yesterday we learned that credit strains have reached manufacturing industries as factory orders dropped 4 percent — the largest amount in nearly two years.
We've also learned that the unemployment rate has reached a seven-year high.
Today hasn't been much better. A report is out claiming employers cut 159,000 jobs in September, the highest one-month amount in five years.
And the banking sector continues to hemorrhage:
Wachovia sold itself to Wells Fargo for $15.1 billion
UBS is purging 2,000 jobs from its investment banking operations
The credit crisis is widening, threatening emerging banks from Europe to Asia
If that doesn't sound grim enough, here's what the Associated Press had to say about today's second vote by the House on the bailout package in relation to the current economic climate:
Rejected once amid public fury about bailing out reckless financiers, a $700 billion rescue package is getting a second chance in the House as voters anxiously ponder an economic meltdown that could wipe out their ability to borrow, plunder their savings and put them out of work.
But buried in all this news about financial fiascoes, credit crises, and bank bailouts, there's actually quite a bit of positive rumbling when it comes to green energy investments.
With all the pessimism and uncertainty that surrounds us, let's take a moment to look at some of the good news that's getting no attention.
The Good News About Green Investments
First of all, despite all the news about tightening markets and restricted credit, green investments posted yet another quarter of record-breaking investment.
For the three months ended September 30th, about $2.6 billion was funneled to 158 companies in North America, Europe, India, and China. This brings the YTD total for green investments to $6.6 billion — which is higher than the total green investment in 2007 — and there's still a full quarter to go.
According to the Cleantech Group, green energy sector "is on track to reach $7.5 billion to $8 billion by year's end — a potential 25 percent increase over 2007."
If that doesn't get you excited, consider this:
The Oil & Gas Journal, the world's most widely read petroleum industry publication, has reported that oil and gas companies' 2007 global investment for exploration and development projects was unchanged from 2006.
No growth. No new investment. That should tell you something.
Green investments are expected to grow 25% this year, in a time of financial hardship. So if you havent' considered investing in green energy stocks, you should.
What's more, with the disappearance of nearly all Wall Street's investment banks, new banks are being formed with the specific focus of funding green projects.
According to Trevor Loy, a board member of the National Venture Capital Association, "Once the cleantech banks get going, I think they could accelerate the access to capital for cleantech companies."
New Investments in Green Energy
Beyond just the total investments in green energy for the third quarter and the year, there is plenty other good news with regard to specific sectors:
Third quarter green investments also included:
$202 million for smart grid technologies
$620 million for solar thin-film start-ups
Record investment of $95 million for algae biofuels
$587 million raised through four new green energy IPOs and
Over $7 billion worth of green mergers and acquisitions stemming from 138 deals
And there's plenty more to get excited about.
Many of the green energy leaders have been announcing exciting new deals, and some new studies have been released that further tout the environmental and economic viability of renewable energy.
A new report by the U.N. called, "Green Jobs: Toward Decent Work in a Sustainable, Low-Carbon World", says that development of alternative energy will create 20 million new jobs around the world by 2030.
To further batter a now hackneyed cliché, this illustrates how green energy is helping Wall Street as well as Main Street.
In addition to the U.N report, a new U.S. Geological Survey (USGS) study estimates that untapped geothermal power from "unconventional methods" of extraction could supply the country with an additional 529 gigawatts of electricity.
But it's not just reports and studies that make a compelling case for investing in green energy. New deals, additional projects, and announcements of expansion are rampant in the alternative energy sector.
Solar juggernaut Suntech Power (NYSE: STP) has announced a plan to triple U.S. sales in 2009, and they've made several acquisitions to that effect. This company is certainly a buy at its current low prices.
And American Superconductor (NASDAQ: AMSC), a Massachusetts-based manufacturer of wind and smart grid components, has announced they've received a contract, partially funded by the U.S. Department of Homeland Security, to update the grid in New York to protect it from severe weather, accidents or terrorist attacks. That company is ripe for the picking as well.
Folks, this stuff is everywhere. From paving a path to energy security to combating climate change to updating the electric grid for the 21st century, green energy and green technologies are playing a pivotal role.
Earlier I told you that oil and gas companies' 2007 global investment for exploration and development projects was unchanged from 2006. That means Big Oil directed no new monies at finding new oil and gas reserves.
But all the money Big Oil didn't add to their exploration budget was more than made up for by their spending on green energy.
You see, while not a penny was added to the budget of Big Oil for finding new sources of oil, BP (NYSE: BP) Chevron (NYSE: CVX, and ConocoPhillips (NYSE: COP) each reported spending as much as $3.5 billion in recent years on solar, wind, biodiesel, and other renewable projects.
If this doesn't tell you where the future of energy is headed, I don't know what will.
To that end, I've prepared a full report about Big Oil's spending activities in the realm of green energy. It details their high interest in renewable energy, and outlines how you can begin taking handsome energy profits, even in these troubled financial times.
If the evidence presented here hasn't convinced you, this report sure will.
Call it like you see it,
Nick
Subscribe to