MOTLEY FOOL LIKES WIND

The repercussions of oil entrepreneur T. Boone Picken’s huge P.R. campaign on behalf of his Pickens Plan keep rolling in. His highly publicized endorsement of wind energy in the plan has set traditional energies back on their heels. His ambitious plan to build the biggest wind energy installation in the world in the Texas panhandle galvanized attention because he is putting his own entrepreneurial prestige and a LOT of Mesa Petroleum (his company) money where his mouth is. (See BOONE PICKENS’ BIG WIND)

What is going on in the wind energy industry is nothing less than an American Explosion.

The wind energy industry has been booming for the last 3 years. In 2007, it grew 45% and provided almost a third of new U.S. power generation, more than any other kind of energy except natural gas. It continues to expand in 2008 despite all the economic, financial institution and investment market woes and an obstinate federal legislature that refuses to provide nurturing policy.

Even investment maven The Motley Fool has taken notice. Interestingly, as The Fool points out, it is not easy to find wind energy investments. Many of the biggest and most important companies are conglomerates and many others are not publicly traded. Nevertheless, The Fool recommends a few good companies for investors' cautious consideration.

Not mentioned by The Fool is the first exchange-traded fund dedicated to the wind energy industry. Rightuflly so. First Trust ISE Global Wind Energy Index Fund was just introduced last month, has yet to prove itself and is struggling to hold its own in a very difficult market.

The Problem and the Pickens Plan

Blow The Market Away With Wind Energy
Ryan Fuhrmann, July 16, 2008 (The Motley Fool)

WHO
The Motley Fool’s Ryan Fuhrmann; Vestas Wind Systems; General Electric; Siemens; Otter Tail;

WHAT
Motley Fool writer Ryan Fuhrmann noticed T. Boone Pickens’ recent campaign on behalf of wind energy (and compressed natural gas vehicles) and took a look at some of the leading wind energy investments.

(click thru for more details from The Fool)

WHEN
- Wind has been growing remarkably fast for the last 3 years. This year or next could see a slow down due to the failure of the U.S. Congress to extend vital tax credits.
- Wind presently provides about 1.1% of U.S. electricity.
- The U.S. Department of Energy released a report earlier this year affirming the wind industry’s capacity to grow to provide 20% of U.S. electricity by 2030.
- Pickens has placed orders for turbines and will begin construction on his 4000 megawatt wind installation and will begin construction later this year or in 2009. It will be built in 4 phases. The first phase will be complete in 2011. The whole project is scheduled to be complete in 2014.

WHERE
- Vestas is based in Denmark. It trades on Copenhagan’s Nordic Exchange.
- GE and Siemens trade on the New York Stock Exchange.
- Otter Tail trades on Nasdaq.
- Pickens’ project will be on 400,000 acres in the region of Pampa in the Texas panhandle.

WHY
- Vestas is the number 1 wind turbine manufacturer in the world. GE Energy is number 2. Spain’s Gamesa is number 3, Germany’s Enercon is number 4 and Suzlon of India is 5.
- Though Motley Fool makes no mention of it, the First Trust ISE Global Wind Energy Index Fund, the first wind energy exchange-traded fund (ETF) was recently initiated by First Trust Advisors.
- The important quality of wind energy in the Texas panhandle where Pickens is building is that the wind blows in the afternoon when there is peak power demand.

(click thru to more info on the fund)

QUOTES
- Motley Fool: “When a Texas oil billionaire tells you that wind power is the next growth industry, it may pay to listen. T. Boone Pickens may have made his fortune by harnessing the nation's addiction to Texas tea, but he recently announced plans to shift his focus to alternative energy, including wind and solar sources.”
- Jeffrey R. Immelt, Chairman/CEO, GE:"T. Boone Pickens' commitment underscores the ability of wind technology to help meet the country's need for diverse sources of energy…As America's demand for energy escalates, it is clear that wind can and will play a bigger part in meeting that need. We're excited to partner with an energy visionary like T. Boone Pickens to bring our wind technology to the marketplace."
- Christine Real de Azua, spokeswoman, American Wind Energy Association: ``Such gigawatt-size projects are evidence of the strong interest in investing in wind power, to take advantage of vast, windy land in the U.S…''