Here's to You Dad!

 

A Lift Only Dad Can Give

 

Happy Father's Day

Returns from a New Age Power Company

Are you an investor hungry for current income?  Is there a green line of global warming fear running through your investment selections?  I have stock that fulfills both requirements.  Brookfield Renewable Energy Partners (BEP:  NYSE) is a renewable power producer with assets in Canada, the U.S. and Brazil.  Brookfield generates over 5,900 megawatts of power each year from plants running on river water, wind or natural gas.  Another 2,000 megawatts is apparently under development in Canada and Brazil.

California's Other Ethanol Producers

In the last two posts Pacific Ethanol (PEIX:  Nasdaq) and Aemetis, Inc. (AMTX:  OTC/BB) got all the attention.  Both companies have crafted their facilities to accept lower-cost sorghum as an alternative feedstock, opening up the door to lower carbon intensity measures for their ethanol output.  There are other ethanol producers in the state, which we believe are still relying on corn as feedstock.  Which companies will remain in operation in California is not yet clear.  Standards sets by California Air Resources Board (CARB) for the carbon intensity of alternative fuels favors local producers and renewable diesel or biofuel over corn-based ethanol.

The Battle for California’s Ethanol Market

For all the fuss, investors might think California’s ethanol market is another Gold Rush.  The Midwest-based ethanol producers are up in arms over California’s attempt to set standards for renewable fuels sold in the state.  The recent post “Dust Settles on Ethanol Producers” published on May 31, 2013, describes legal maneuverings by South Dakota-based ethanol producer Poet, LLC and others to block a ‘carbon intensity’ standard imposed by the California Air Resources Board (CARB). 
   

Under the CARB standard the carbon intensity of alternative fuels includes elements for power and other inputs as well as transportation and distribution.  The formula CARB is using give Midwest suppliers of ethanol a significantly higher carbon content rating than just about every other alternative fuel category.