It's About Location

This piece by Sam Hopkins shows that investing in green energies has just as much to do with the location as the company itself. He breaks down the pros and cons of each of the major area of oil producing and consuming.

North America
Pros- Political pressure is higher than ever to purse renewable energies.

Cons- Mexico’s biggest oil reserve, the Cantarell offshore field, has had 34% decline in production in the past year. Also, entrenched political groups, namely the corn industry, have dictated the US’s approach to clean energy.

Europe
Pros- The EU has many new members from the east, who have low-cost but high-tech industrial bases, that are former Soviet satellites. The EU also has a binding “20x20” target, which forces each of its 27 members to have 20% of all their energy to come from renewable energies by 2020. The Cleantech Competition across the EU will help them innovate and share to reach the 2020 target.

Cons- The recession has begun to slow down government spending on green energies.

Asia-Pacific:
Pros-As countries like China and India dance in their new money, they have spared plenty and are eager to invest and innovate to “leapfrog” fossil fuels.

Cons- Asia is way too reliant on coal.

Middle East
Pros- Superfluous money and an understanding that its oil reserves are running out have given reason to try greener energies. Masdar City in the UAE is fine example of the Middle East’s progress. Masdar City will be a walled city that is powered by solar panels and other green energies to achieve a zero-carbon output.

Cons-
Political questions and Iran’s increasing oil production are big obstacles to be overcome.

Africa
Pros-Africa has such a wide variety of climates and terrains. Every type of energy can be found there.

Cons- Rampant corruption and lack of unity are the biggest problems Africa’s green dream faces.

Latin America
Pros- Many countries are veterans to localized energy, like sugar ethanol, palm oil, and jatropha biodiesel. Solar energy is also abundant and cheap in Latin America.

Cons-
There are protective tariffs in a majority of the ethanol consuming countries. Also, Venezuela’s energy plan is oil-centric.

Sam Tompkins ends with to final points: politics is key and look out for a green Latin America.

When we plan our investing, I think all of his pointers will help. One of the things that I think could use some more research is the niche in Latin America. We need to find out more on why he points us so confidently in that direction.

http://www.greenchipstocks.com/articles/international-clean-energy/388