High corn prices has already caused the closing of five small to mid-sized US ethanol plants.  As much as 2-5 billion gallons of ethanol could go offline according to a Citi research note.

The higher corn prices means higher prices for corn-based feeds for cattle, hogs, and chickens.  The higher demand for grain is leading the way for gains in the seed and fertilizer market.  The Agriculture Chemicals sector has been the highest performing sector this year.

Source: “Midwest flooding add to farmers’ woes”

http://www.msnbc.msn.com/id/25144871/

According to Mitchell Clark at Ahead of the Street, “I continue to think that the alternative energy investment theme remains a pillar investment sector going forward and that the solar energy industry will continue to experience solid growth over the coming years.”

One micro-cap company in this industry that looks very interesting is Amtech Systems, Inc. (NASDAQ/ASYS). This company manufactures specialized equipment that is used to automate the handling of silicon wafers and semiconductors used in the fabrication of solar cells and semiconductor devices.

According to Amtech, in its recent second quarter of fiscal 2008, total revenues grew to almost eighteen million, representing growth of 67% as compared to the comparable quarter last year and up 50% sequentially.

For the third fiscal quarter of 2008, Amtech now anticipates that itstotal sales will be between twenty-one million dollars and twenty-three million dollars, representing growth of approximately 63% to 79% over the comparable period last year. For all of fiscal year2008, Amtech expects total sales to be in the range of seventy-one million dollars to seventy-five million dollars, representing growth of 54% to 63% over fiscal 2007.

The only good news about high oil prices is that it helps us realize the potential opportunity in the alternative energy sector.

Souce “High Oil Prices Heat up Alternative Energy Stocks” by Mitchell Clark, B. Comm.

Both Obama and McCain favor a cap-and-trade carbon-emissions-control system, this is essentially a carbon tax, where polluters will pay a flat rate per ton.  However, the tax would be offset by reductions in other taxes to reduce the overall economic effect.  The permits for polluters would encourage businesses to try alternative energy measures.

Another important difference in the candidates affects tax planning.  Obama plans to reverse the 2001 and 2003 tax cuts, and favors the Charles B. Rangel bill which increases income taxes on higher incomes, and could potentially increase the top marginal rate of income taxes from 35% to 52%.  He will also increase the capital gains tax from 15% to at least 20%.

McCain plans on balancing the US federal budget as his most important objective, but plans to continue the US involvement in the Middle East, which will continue to be costly.

There are also differences in the way they plan to regulate the financial services industry.  Obama has no great objection to investment bankers as many are his supporters, while McCain dislikes investment bankers, and would probably impose greater restrictions.

Source: “Carbon cap-and-trade: Obama versus McCain” by Martin Hutchinson

McCain also believes nuclear power must be considered to reduce carbon-fuel emissions, and set a goal that by 2050 the country will reduce carbon emissions to a level sixty percent below that emitted in 1990.

Source: http://www.launch3energy.com/?p=60#more-60

John McCain and Barack Obama are promising to fast-track alternative energy.

Source: http://news.bostonherald.com/news/opinion/op_ed/view/2008_05_23_American_energy_policy_needs_defining__refining/srvc=home&position=recent

An opportunity to meet the biofuels industry leaders within the Asia Pacific, the most promising biofuels market

CEE Wind Conference � Warsaw, Poland July 4, 2008

This conference will assess the potential of the entire CEE wind market, and whether this region will become a huge opportunity for investors.

Intersolar North America � San Francisco, CA July 15-17 2008

Over 10k visitors expected to attend. The main themes are photovoltaics, solar thermal energy, and solar architecture.

Wind Expo LAWEA 2008 � Guadalajara, Mexico Nov 5-7 2008

The first international Wind Power and Renewable Energy Conference and Exhibition in Mexico.

Source: http://www.alternative-energy-news.info/technology/events-conferences/

Infinia was funded an additional $7 million for its Stirling engine-based solar thermal system, and Stirling Energy Systems was funded $100 million from NTR, a developer and operator in renewable energy and sustainable waste management. eSolar raised $130 million, and is backed by Google.org, Idealab, and Oak Investment partners.

Other recent alternative energy deals include:

• Voorhees, N.J.-based American Water Works (NYSE: AWK) finally made it onto the public market, but pulled in a lower-than-expected $1.25 billion after pricing 58 million shares at $21.50 per share. The company had originally planned to offer 64 million shares at $24 to $26. All of the proceeds from the initial public offering are going to German power company RWE (OTC: RWEOY), which is exiting its water activities (see American Water Works prices below range).
• Albuquerque, N.M.-based Enerpulse, a developer of energy efficient automobile spark plugs, raised $5 million in additional Series B funding from Robeco, part of the Rabobank Group. This latest financing brings the total round up to $10.5 million, including a $5.5 million initial close from Sail Venture Partners and Altira Group.
• Qingdao Land of State Power Environment Engineering, a Chinese wind energy and environmental protection company, raised $5 million from the Aureos China Fund. Qingdao specializes in the production of wind energy turbines and in equipment needed to clean gas and water emissions from power stations.
• Think Global, a Norwegian electric car maker, launched a North American subsidiary, forming the unit as a joint venture with backers Kleiner Perkins Caufield & Byers and RockPort Capital. Think Global will hold a 50 percent stake in the North American venture, with the venture capital firms splitting the remainder (see Think electric cars coming to North America).
• Kennewick, Wash.-based Infinia, a developer of Stirling engine-based solar thermal technology, raised $7 million in additional Series B funding from Foxconn Technology Group and an undisclosed investor. Infinia previously held a $50 million first close, with earlier round participants including GLG Partners, Wexford Capital, Vulcan Capital, Khosla Ventures, EQUUS Total Return, Idealab and Power Play Energy.
• Phoenix-based Stirling Energy Systems, another Stirling-powered solar thermal company, received its first big round of funding, pulling in $100 million. The cash comes from Dublin, Ireland’s NTR, a developer and operator in renewable energy and sustainable waste management. NTR is getting a 52 percent stake in Stirling Energy with its investment (see Stirling engines meet solar power in the desert).
• Traditional solar thermal developer eSolar, based in Pasadena, Calif., raised $130 million. No Stirling engines here, just some big-named backers, including Idealab, Oak Investment Partners and Google.org, the philanthropic arm of search giant Google. ESolar said Google.org’s January investment of $10 million in the company is included in this funding round (see Going modular with eSolar).
• The U.S. Department of Energy selected projects for up to $50 million in federal funding to modernize the nation’s electricity grid. The department said the nine demonstration projects are targeting a 15 percent reduction of U.S. peak load electricity demand. The DOE said the funds would be invested over five years , from fiscal 2008 through fiscal 2012.
• The DOE also selected three small-scale biorefinery projects for up to $86 million in financing in Maine, Tennessee and Kentucky. The DOE said the money would be invested over four years to support the development of cellulosic biorefineries in Old Town, Maine; Vonore, Tenn.; and Washington County, Ky.
• On top of grid improvement and biorefineries, the department of energy is also putting up cash for biomass research. The DOE said up to $7 million is available for projects that can improve the conversion of biomass to advanced biofuels via pyrolysis (see US DOE offering more funds for biomass).
• Broomfield, Colo.-based Real Goods Solar, a residential solar installer, set terms for its planned initial public offering, expecting to sell 5 million shares at $10 to $12 per share. ThinkPanmure, formerly ThinkEquity Partners, is the lead underwriter on the deal. Real Goods Solar is a subsidiary of Broomfield’s Gaiam (Nasdaq: GAIA), which will continue to control Real Goods Solar. Gaiam sells environmentally friendly lifestyle products (see Real Goods Solar sets IPO terms).
• Charlotte, N.C.-based solar company Sencera International raised $3.6 million in funding. Sencera said the investment was led by the Quercus Trust. The photovoltaic thin film module and systems developer said it would use the financing to accelerate increases in cell efficiency and to complete process integration of its Viper manufacturing platform.

Source: http://media.cleantech.com/2759/funding-heats-up-for-solar-thermal

Source: Newsmax.com “Gore has personal stake in Anti-warming Campaign“

Solar stocks traded higher following the news that LDK Solar signed a 10 year contract to supply Moser Baer Photo Volatic Ltd. with multicrystalline solar wafers.� LDK’s stock rallied as much as 10.7%, the highest since Feb. 21.

Piper Jaffray(NYSE:PJC)� added J.A. Solar Holdings, Canadian Solar (NASDAQ:CSIQ), and Yingli Green Energy to its Alpha List.

Calyon Securities continues to be bullish on the sector, and reiterates its buy ratinsgs on First Solar(NASDAQ:FSLR), Sunpower Corp (NASDAQ:SPWR), Evergreen Solar(OTC:ESLRW) (NASDAQ: ESLR), and Energy Conversion Devices Inc. (NASDAQ:ENER)

Source: http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24241301.htm