Notables also pitching in to drive home both the importance and broad
impact on energy, jobs and security were Pennsylvania Governor Edward
Rendell and the U.S. Assistant Secretary for Energy Efficiency and
Renewable Energy, Alexander "Andy" Karsner.
While Biofuels, and particularly investments and capacity building for
ethanol production, are currently hot investments with an estimated 40 new
manufacturing facilities planned for the U.S., Wind power and Solar energy
were also highlighted at the conference by industry specialists.
Although there were cautions of over-building for production, ethanol is
the market's current answer to high fuel prices and stretching oil
supplies from foreign sources. Today's investments in ethanol are
estimated to be USD$1.5 billion in institutional debt and USD$5 billion in
public equity. There was zero investment in this sector in 2004, according
to Jefferies Courtney Tuttle, a presenter for the Biofuels Finance
session.
In both the Solar and Wind finance sessions, presenters once again agreed
that consistent U.S. policy for production tax credits and incentive
supports are important, if not crucial, to balance our nation's long-term
energy supply, curtail global warming and create new profitable markets
for both. Solar and Wind market growth is expected to continue at a brisk
25% to 30% next year, although once again threats from expiring federal
incentives could dampen such growth in 2008 unless progress is made on
extending incentives.
Manufacturing capacity constraints for Wind in the form of finished
turbines and high costs of steel, and for Solar, limited silicon supply,
are likely to influence near term investment.
Other renewable energy options highlighted during the conference that have
garnered some investment: Imperium Renewables touted its biodiesel as a
sound environmental and profitable biofuel manufacturer, and Konarka
challenged investors to consider its non-silicon, carbon-based
photovoltaic (PV) process as a "disruptive" technology without the raw
silicon constraints and the high labor costs associated with silicon-based
PV.
In 2006, the overall renewable energy sector should see a 25% increase in
investment to USD $60 billion, up from USD $48 billion. For a complete
rundown on the numbers, refer to ACORE's release on this site at the link
below.
"We are calling on investors to show leadership -- while taking prudent
risks," said Governor Rendell. "We can do it." Rendell, later chastising
President Bush in a follow-up news conference for lack of leadership on
energy issues, predicted that energy, and specifically renewable energy,
would likely be a top national political issue this year and in the 2008
presidential election year. "It (energy) needs to become a federal
priority. It's a vital priority that affects all of us, and transcends
traditional politics."
Secretary Karsner took exception to Rendell's remarks -- "He obviously
hasn't been listening to the President," said Karsner. "Nothing has been
of a higher priority. It's a legacy and wartime issue."
The event is presented by the British-based EuroMoney Energy Events and
Washington, DC-based American Council On Renewable Energy (ACORE).