Friday, February 12, 2016

Tide Coming in for Atlantis

Atlantis Resources Ltd. (ATL:  LN) is among the most recent additions to the Ocean Group in Crystal Equity Research’s Earth, Wind and Fire Index of companies using the dynamic forces of the planet to generate energy.  Atlantis is a developer of tidal power generation technologies.  Atlantis has been working diligently for over a decade to developer underwater turbine technologies.  A project in San Remo, Australia using the company’s Aquanator tidal current turbine was among the first in the world to deliver ‘ocean’ power to an established electric power grid.  The Aquanator has since been replaced by a larger turbine.

Tidal and waver power is an attractive alternative to wind power generation.  Water is over 800 times denser than wind.  Consequently, underwater turbines can be substantially smaller than wind turbines yet generate comparable or greater power.  The moon cycle is also highly predictable, a characteristic that grid operators appreciate from a power source.  Even with some deviations due to weather conditions, consistent power generation from waves and tides can be counted upon day-by-day and year round.

Tuesday, February 09, 2016

Wind Turbine Tie Up

Spain’s wind turbine manufacturer, GAMESA Corporation (GTQ1: Berlin or GAM: Madrid), has been under pressure lately to spread profits over a hefty debt load.  The November 13, 2015, post entitled The Wind in Spain is Mostly in GAMESA, noted the expanding product line and building customer base.  Backlog at the end of September 2015 was 3,034 megawatts, representing a 43% increases over backlog a year ago. 

Robust sales and higher profit margins have generated strong cash flows and GAMESA has been able to pay down debt.  During the first nine months of 2015 the company used Euros 238 in cash to reduce net debt to Euros 70 by the end of September 2015.  Still the debt burden had been an issue for GAMESA as principal payments on notes and bond are coming due.  However, in December 2015, GAMESA announced an extension of the expiration date to January 2021, for its Euro 750 million syndicated loan facility.

Friday, February 05, 2016

N-Viro Might Have Found a Gem in Waste

After ethanol producers figured out that pricey feedstock could rapidly erode profits, the renewable energy industry began casting about for alternative feedstock.  What is cheaper than ‘free?’  Waste of all kinds  -  sewage, mixed municipal trash, animal manure, food and agriculture waste, wood pulp, exhaust gases, steam  -  can be virtually free.  Sometimes waste generators are even willing to pay a fee to anyone willing to accept their nasty stuff.

Tuesday, February 02, 2016

CDTI: When Encouraging News is Not Enough

Last month Clean Diesel Technologies (CDTI:  Nasdaq) began shipping the latest innovation in its line of vehicle emissions control products to a new customer with assembly operations in China.  The diesel oxidation catalyst will be used by Panasonic Ecology Systems for products aimed at the retrofit market for heavy duty vehicles.  The relationship is expected to generate annual revenue in the ‘low single digits’ once ordering from Panasonic has ramped to full-rate by the end of 2016.  Responsible for Panasonic Group’s environmental systems, Panasonic Ecology Systems is an excellent customer.
The news seemed encouraging and stock bargain hunters might find attractive the low price quoted for CDTI.  We revisited Clean Diesel Technologies, a company that has long been listed in our Mothers of Invention Index of companies with innovative energy, efficiency and environmental technology.