Aspire Week in Review - Week Ended September 5, 2008

Aspire Week in Review - Week Ended September 5, 2008

EIA estimates that members of the Organization of the Petroleum Exporting Countries (OPEC) earned $671 billion in net oil export revenues in 2007, a 10 percent increase from 2006. Saudi Arabia earned the largest share of these earnings, $194 billion, representing 29 percent of total OPEC revenues. Through July, OPEC had earned an estimated $642 billion in net oil export earnings in 2008. Based on projections from the EIA August 2008 Short Term Energy Outlook (STEO), OPEC net oil export revenues could be $1,172 billion in 2008 and $1,225 billion in 2009.

Source: EIA OPEC Revenues Fact Sheet

Projections for profit in the Middle East due to $100-plus oil are impressive, and to be sure, the oil producing countries are taking advantage of the surge in wealth to diversify investments. Amidst the west and the non-oil producing countries clamor for alternative sources of fuels, it is hardly a surprise to see some of the oil profits in the Middle East being planned for alternative energy investments. This week a poll conducted by Leaders Presents reported that 92% of regional business leaders in the UAE think that it should invest in research and development of renewable energies including solar and wind power.

Meanwhile, UN Secretary-General Ban Ki-moon, co-recipient of last year's Nobel Peace Prize said this week "Now with the expected change of the administration of the United States, of course, I would expect that the future president, whoever may be, will have to exercise greater leadership" with respect to the global climate change challenge, adding that countries throughout the world are "looking for more and greater leadership of the United States."

Not too long ago, conventional wisdom was that either a McCain or an Obama administration would be a huge step forward in terms of addressing climate change, and in support for the renewable energy and clean tech sectors. We aren't so sure anymore that the McCain has an appetite, however, these days from much outside of expansion of domestic drilling (see Politics below).

Feeling its oats, this week in Minneapolis, the GOP proclaimed an end to ethanol mandates, arguing that markets, not government should determine how much ethanol is blended into gasoline. Sounds virtuous enough, until they, and their oil lobbies look inward to count the hundreds of billions that the oil industry continues to receive on an annual basis in subsidies and government relief - not exactly what Adam Smith had imagined.

Unsurprisingly, Republican Governor of Nebraska Dave Heineman and Senator John Thune (R-S.D) disagree with the GOP stance, saying that it "got it wrong" on this issue. This issue is clearly divided across geographic, rather than party lines in the GOP.

The current Renewable Fuel Standard calls for 9 billion gallons of ethanol to be blended into the nation's gasoline supplies in 2008.

Biofuels and Biomass

Aventine's (NYSE:AVR) CEO Ronald Miller commented on Wednesday that he expects soft margins through 2008 and that industry conditions could result in a pickup in M&A activity.

Baylor professors were awarded a $492,000 grant from the USDA to continue research on the production of cellulosic ethanol. The original grant started about five years ago.

National average price of E85 in August was $3.08, 16.9% less than unleaded which was selling at $3.71. The Price of E85 dropped 20 cents from July and Gasoline fell 17 cents.

Source: E85prices.com

Propel and The Essential Baking Company released a joint study on the impact of replacing petroleum fuel with biodiesel in EBC's delivery fleet, where the results of the 13-week study showed that vehicles fueling with B99 biodiesel ran more smoothly and significantly reduced CO2 emissions and other toxins compared to petroleum diesel. Cold weather was proved not to be a problem, with 32 days of the study reading temperatures below 35 degrees Fahrenheit.

Ford is developing a new line of turbocharged ethanol direct-injection gasoline engines under the code name Bobcat.
Bobcat engines will feature ethanol boost technology, developed by Ethanol Boosting Systems, LLC that promises 5 to 10 percent greater fuel economy than EcoBoost engines.

Governor Ed Rendell (PA) and the Chesapeake Bay Commission issued a report this week touting the promise of alternative fuels such as cellulosic (see Reports and Research below)

In New Zealand, Parliament passed legislation requiring oil companies to supply biofuel at 0.5% of their total sales, starting in October, and rising to 2.5% by 2012.

President Arroyo launched a $28 million, 10MW biomass power plant in Camarines Sur this week.

Brazil

Newedge USA LLC's Rodrigo Costa said that ethanol production is going to be higher than expected, with Brazilian mills turning 57% of their sugar cane into fuel this year, up from 54% last year.

Brazil's Foreign Minister Celso Amorim said this week that it may challenge the U.S. at the WTO over its tariffs on imported ethanol. He said the case could be presented as soon as the next month or two.

Areva announced a €33 million contract to build a 33MW biomass power plant in Brazil for Tractebel Energia, a Brazilian subsidiary of GDF Suez.

Ethanol use in Brazil will increase 32% in the next three years, driven  by more flex fuel cars, with consumption rising to 24.8 billion liters by 2011, up from 18.8 billion liters this year.

Brazil's flex fuel cars will account for 44% of Brazil's vehicle fleet in 2011, up from 28% at present.

Source: Brazil Agriculture Ministry

Carbon and CCS Markets

The International Energy Agency (IEA) projects primary energy consumption to increase by 55% between 2005 and 2030 - assuming no new government policies. Fossil fuels account for 84% of the increase, resulting in an increase of energy-related emissions by 57%.

Much of the demand and corresponding increase in emissions is projected by the IEA to come from China and India.  But to be fair, this past week the Standing Committee of the 11^th National People's Congress (NPC) of China approved regulations to curb CO2 emissions and to promote the adoption of clean technologies. The new legislation, which will include a slate of tax breaks for energy efficient and clean technologies, will come into effect next year. This will be an interesting development for western businesses that have moved their carbon intensive operations over to China in recent years.

In a report published last week, the United Nations Environment Programme called for a cut in fossil fuel subsidies which would result in a reduction in emissions. The fact is that while certain members of Congress and various lobbies to the oil industry complain about existing and proposed extensions of renewable energy subsidies, for decades the conventional fuel industry has been benefiting to the tune of hundreds of billions in subsidies and breaks each year - hardly a level playing field.

Meanwhile, the Climate Institute recently reported that Australia could cut emissions by 25% to below 1990 levels by 2020 with about $46 billion in investments into carbon reduction technologies.

Vattenfall's 30MW Schwarze Pumpe power station, the world's first coal-fired plant to capture and store its own CO2 emissions is going to be commissioned next week. The power station will produce power and 10 tons of highly concentrated CO2 an hour. The CO2 will be loaded onto tankers and taken to a nearby gas field for sequestration.

Energy Management

Echelon (Nasdaq:ELON) announced the first full-scale roll-out of its Networked Energy Services (NES) System in Germany, wherein it will provide all of EVB Energie AG's approximately 10,000 customers with advanced metering infrastructure over the next three years.

Fast Facts

·         According to Berg Insight, the installed base of smart electricity meters in Europe will grow at a compound annual growth rate of 15.6% between 2008 and 2013 to reach 81.2 mln at the end of the period. After massive rollouts in Italy and the Nordic countries, the turn has now come to France, Spain and the Netherlands to receive smart electricity meters. Berg Insight expects that new installations will reach a rate of 11 mln units annually in these countries by 2013.

Energy Storage

Ultralife Corp (Nasdaq:ULBI) won a $4.8 million order from the DOD for its SmartCircuit® lithium ion rechargeable batteries and chargers from its Land Warrior product suite.

POSCO, the world's fourth largest steelmaker said it has started operation of the world's largest fuel-cell power plant (50M), through an alliance with FuelCell Energy (Nasdaq:FCEL). POSCO said it plans to invest 170 billion won ($148 million by 2012) to expand its fuel cell business and build another 50MW fuel cell power plant. 

China BAK (Nasdaq:CBAK) raised FY08 guidance to $240 million, from $210 million and announced FY2009 guidance in the range of $370 million to $410 million.

Maxwell Technologies (Nasdaq:MXWL) said its BOOSTCAP® ultracapacitors have been selected by Plug Power (Nasdaq:PLUG) to enhance performance and energy management in its line of GenDrive™ power units. Delivery on Plug Power's order is scheduled for the third and fourth quarters.

Mechanical Technology (Nasdaq:MKTY) is now traded on the smaller Nasdaq market, after having been notified by Nasdaq that it failed to meet the $10 million minimum threshold of stockholder equity needed to remain in the Global Market. It also recently announced the layoff of 29 employees.

Geothermal

AltaRock Energy finalized a deal with Weyerhauser which will allow it to explore about 667,000 acres of land for potential geothermal projects in California, Oregon and Washington.

Nevada Geothermal (OTCBB:NGLPF) and Ormat (NYSE:ORA) said that NGP Blue Mountain 1 LLC has issued a full-notice to proceed construction of the Phase 1 49.5MW "Faulkner 1" geothermal plant at Blue Mountain, Nevada. Ormat provided the engineering and design of the plant, and is guaranteeing "substantial" completion by December 31, 2009.

Raser Technologies (NYSE:RZ) said it has completed setting all of the first 50 geothermal generating units at its Thermo plant in Beaver County, Utah. It also announced that it was chosen to develop more than 100,000 acres of geothermal resources to build an estimated 110MW of geothermal power in conjunction with Indonesia Power.

Hybrids and PHEVs

Honda is reportedly bringing back the Insight nameplate for a hybrid-only vehicle it is planning for the Japanese, European and North American markets next year. It had discontinued the Insight hybrid (which it launched in 1999) in 2006 on cumulative sales of 17,000 worldwide.

The Advancing the Hydrogen Economy - Action Summit II was held this week at the Energy & Environmental Research Center in North Dakota. GM displayed its Chevy Equinox Fuel Cell vehicle at the event. Today the EERC dedicated its new $3.5 million building for the National Center for Hydrogen Technology.

Fast Facts

·         Reported US sales of hybrids from the major automakers rose 3.6% in August 2008 compared to the same month the year before to 26,045 units.

Hydropower

The Forum for Renewable Energy Development in Scotland said that it can boost hydropower by 50%, or 657MW.

And Innergex (TSX:INE) acquired rights to 18 prospective hydroelectric projects representing an aggregate 200MW of installed capacity. Innergex has an aggregate capacity of 2,273MW in operation, development and prospective projects.

Peru is reportedly considering 15 potential hydro projects with a range of 220MW to 7,550MW, for a total of more than 19,000MW.

Military Exercises

Taliban insurgents have been active in the Kajaki District in southern Afghanistan, where a 33MW hydroelectric dam and power plant are located. British troops backed by U.S., Canadian, and Australian forces completed one of the largest logistical operations of the seven-year Afghan conflict this week, delivering a 200-ton turbine to the 33-MW Kajakai hydroelectric project in a remote Taliban-dominated region. The troops faced frequent attacks along the way, with an estimated 250 Taliban killed in the process. The delivery involved about 5,000 troops, including a fleet of helicopters, with French and U.S. fighter jets. Chinese engineers on the ground will install the equipment which will boost capacity to output of 51MW.

Pollution Control

CECO Environmental (Nasdaq:CECO) said two of its units received orders worth about $4 million for a Taiwanese petrochemical plant. Management affirmed that its backlog is at about $126 million as of August, compared with $130 million last year.

Solar

Greenpeace and the European Photovoltaic Industry Association have published a report that estimates by 2030 more than 1800GW of PV will have been installed worldwide, representing 14% of global electricity demand.

Suntech (NYSE:STP signed a seven-year supply polysilicon agreement with DC Chemical, valued at about $750 million from 2010 to 2016. In March, Suntech announced an eight-year supply agreement with DC Chemical valued at about $631 million. Also this week, it said it has been selected to supply a 1MW system (5,445 solar panels) at the North Face West Coast distribution center in Visalia, California.

LDK (NYSE:LDK) has signed a five-year wafer supply contract with Solartech Energy, supplying about 550MW through 2013, and a $32 million contract with GT Solar (Nasdaq:SOLR) for polysilicon CVD reactors. LDK also signed an eight-year contact with Sumitomo, committing for delivery of about 750MW of multicrystalline silicon wafers to commence in 2009. And Yingli Green Energy (NYSE:YGE) announced a 16MW sales contract with Fire Energy, S.L. for 2009 delivery.

DuPont (NYSE:DD) said, due to strong demand for solar energy, it is expanding production capacity for its Tedlar films, which are used as backsheets in solar panels.

DC Chemical signed a $173 million contract with GT Solar (Nasdaq:SOLR) to supply polysilicon production equipment. And Hoku (Nasdaq:HOKU) announced another blockbuster deal, this time with Wealthy Rise, International Ltd., a wholly-owned subsidiary of Solargiga Energy Holdings (HKG:0757). Under the contract terms, Hoku is to deliver polysilicon to Solargiga over a 10-year period beginning in early 2010 for a total of about $455 million. The contract also calls for a deposit of $22 million to Hoku within 15 days and requires additional deposits of $21 million by December 20, 2008, $20 million by March 31, 2009 and $5 million on the first shipment.

GCL Silicon signed a supply deal with Canadian Solar (Nasdaq:CSIQ), wherein it will provide 510 metric tons of high-purity polysilicon feedstock over the next couple years and about 1.8GW of solar wafers from 2010 through 2015. GCL began shipping its first polysilicon in October 2007 and now expects to reach 14,500 metric tons of annual capacity by March 2010, and 1.9GW of mono-and multicrystalline wafer making production in place by the end of 2010.

Solibro, a JV between Q-Cells (QCE.DE) and Solibro has begun shipping its CIGS thin-film PV modules. It expects to increase capacity at its factor from 30MW to 45MWp and plans to build a second line with a capacity of 90MWp, and in full capacity by 2010.

MEMC (NYSE:WFR) said in its mid-quarter update that it expects revenues of $560 to $620 million this quarter, which at the high-end of previous guidance.

Satcon (Nasdaq:SATC) announced it has begun taking orders for its PowerGate™Plus 1MW commercial PV inverter system, and delivery is expected to begin in Q1 2009. It also said it is being tapped to provide its PowerGate™Plus 500kW inverters to a 12MW system on the General Motors manufacturing facility in Spain.

Downstream

BP Solar completed its second solar install for FedEx, consisting of a 269kW rooftop system at its distribution center in Fontana. The 1,377 solar modules cover 20,834 square feet, generating about 54% of the facility's energy requirements.

Frito-Lay NA is going to install a solar thermal water heating system designed by EnerWorks, with the design and management being handled by Class One Solutions. The installed system is expected to reduce the building's hot water energy consumption by 175,000kWh by the end of the year.

Pricing Pressure

SunPower's (Nasdaq:SPWR) CEO Thomas Werner said this week that he thinks sales prices may drop as much as 10% to 20% next year.

Wind

The American Wind Energy Association (AWEA) said this week that the U.S. market has exceeded the 20,000MW installed capacity milestone, with wind now providing 20,152MW of electricity generating capacity. The 20,000MW of wind power can generate as much electricity every year as 28.7 million tons of coal, or 90 million barrels of oil. The DOE reported in May that wind energy can provide up to 20% of U.S. electricity by 2030. Currently, it provides just more than 1.5% of the nation's electricity.

Iberdrola Renewables started construction on a second wind farm in South Dakota, the Buffalo Ridge Wind Power Project, which will produce about 50MW of power that will be purchased by Northern Indiana Public Service Company. The project will include 50 Suzlon turbines.

Moventas is investing an additional 100 million euros in wind turbine gear production, for a plant to be built in Faribault, Minnesota. Production is expected to start at the end of 2009, with full capacity being reached in early 2011.

Dakota Wind Energy said it has acquired more than 40,000 acres of land under an option, which will provide more than half the land needed to develop wind projects up to an aggregate of 750MW.

·         According to the American Wind Energy Association, North Dakota's wind energy potential is 138,400MW.

China Power Investment Corp. is investing 2.8 billion yuan ($410 million U.S.) in the construction of a wind power plant, the Tuoshan Wind Power Plant, which will have an installed capacity of 310,000kw, generating more than 700 million kWh annually.

·         China was ranked fifth in the world last year in terms of wind capacity with 605 million kw.

Atlantic Energy Solutions  and STV Architects have been awarded a contract to perform power/load calculations, wind turbine assessments, solar PV design and specs, and solar PV training and testing for the NYC Metro Transit Authority. MTA is committing to evaluate the feasibility of providing 14% of the power at the depot from wind turbines through and RFP process.

Critics

E.ON said this week that wind energy is so unreliable that even if the UK builds 13,000 turbines to meet targets, they would only be reliable to deliver 7% of the country's peak winter electricity demand. E.ON's argument relies upon an assumption that during the middle of winter there is such a little amount of wind blowing that traditional power would have to be relied on to back wind power up.

BooneWatch

T Boone Pickens got more press at the GOP convention in Minneapolis this week, arguing that U.S. and global oil production have peaked.

Politics and Washington

Well, it should be clear enough that McCain's selection of the "energy expert" Sarah 'Barracuda' Palin, is an indication that McCain's commitment to renewable energy will be watered down even further. While McCain has heretofore been reluctant to suggest and advocate drilling in ANWR is a good idea, it appears that Palin has already got it all figured out. As characterized by Maria Bartiromo, Palin, the "energy expert" clearly shows that nominal amount of land in the vast ANWR region is a reasonable business proposition.

Yeah, we pointed out last week that McCain has been pretty lax in advocating extensions of renewable tax credits - which as we also pointed out, is a tactic the GOP is using to sweat out the Dems to cave on the GOP's domestic drilling schedules. But to be fair, Obama hasn't exactly been showing up for votes lately either - though his vision and support for renewable energy is far more compelling than McCain's.

The world is spending about $300 billion each year to subsidize fossil fuels, according to UNEP.

U.S. oil and gas companies are expected to receive more than $20 billion in subsidies over the next five years, according to Taxpayers for Common Sense.

Larry Kudlow says "this is the energy election" and that "it will determine our peace and prosperity," concluding myopically that Sara Palin has the energy answer, just drill, and then drill again. Like Bartiromo, Kudlow is quick to paint Palin as the "energy expert." What makes Palin an energy expert anyhow?

We agree, this election does matter and it is critical. It is clear enough that the GOP, re-energized by their very own energy expert, will hold the rest of us hostage on their drilling plans if we think we will have any chance to gain their support on renewing the tax credits for solar, wind, et. al.

And this next week, Congress reconvenes for a shortened session, where no doubt that energy policy will be at the top of the agenda. Be prepared to hear much noise coming from the "Gang of 10", a bipartisan group that is has proposed a mix of domestic drilling, nuclear and renewable energy as a means of getting past the stalemate on the floors. Then there is the "Gang of 16", which has its own variety of a compromise. To be sure, next week is going to be packed full of emotion but the question is whether policies will prevail over politics. Another thing seems to be clear, is that the GOP is willing to sacrifice continued progress in renewable energy investment and tax credits if it doesn't get its way on domestic drilling.

On a state/city level it seems more progress is being made. In NYC, Mayor Bloomberg signed a unique piece of legislation this week that prohibits businesses from wasting energy by blasting air conditioning out open doors into the street to attract customers.

And in Florida, the Public Service Commission agreed on changes for interconnection agreements and rates that are designed to increase electricity generated from solar, wind, and other renewable sources.

State regulators in NY approved a $4.5 billion merger between Energy East Corp. and Iberdrola SA which will pave the way for Iberdrola to spend $200 million on new wind power facilities in NY within the next two years.

Special Note

We try to avoid grinding partisan axes where we can, but with McCain's selection of an oil VP it is pretty clear to us that the McCain ticket is veering further and further away from its commitments to renewable and clean sources of energy and technology. To that point, our sentiment is echoed by the recent launch of Cleantech and Green Business for Obama, a group started by Jeff Anderson and Sunil Paul. This last week, about 400 people gathered at Hastings College of Law, including Dan Reicher, director of energy initiatives at Google.org, Steve Westly, CEO of The Westly Group and former eBay exec, Aimee Christenson. For more information go to: http://www.cleantechforobama.com/.

M&A & Financing

Yingli Green Energy's (NYSE:YGE)subsidiary Tianwei Yingli signed a 5-year $50 million credit facility agreement with Deutsche Investitions - und Entwicklungsgesellschaft mbH and the Netherlands Development Finance Company.

Raser Technologies (NYSE:RZ) closed the initial funding agreement with Merrill Lynch for project financing and tax equity capital for the development of its 10MW Utah geothermal power plant.

Suzlon announced it will buy Martifer's REpower stake early, for 270 million euros (about $396 million). The purchase of Martifer's 22.48% stake should be complete by December 5, bringing Suzlon's stake to about 90%.

Suez Energy North America is purchasing FirstLight Power Enterprises which includes 15 power plants and a natural gas peaking facility in New England, with a total of 1,538MW of capacity in Massachusetts and Connecticut. The purchase price is estimated to be about $1.9 billion.

Xunlight Corporation received $11 million in additional financing from institutional investors led by Rabo Ventures, a division of Rabobank. Others participating in the financing include Trident Capital and Emerald Technology Ventures.

Noble Environmental Power LLC is set to offer about 24.44 million common shares in an IPO co-underwritten by Lehman Brothers, Credit Suisse and JPMorgan. The anticipated ticker symbol is NEPI.

GE Energy is investing $141 million in the $381 million Tatanka Wind Farm, which has a generating capacity of 180MW. GE Energy now has equity in 38 wind farms.

Sindicatum Carbon Capital raised $280 million from  U.S. endowment funds and Istithmar, a Dubai sovereign wealth fund to fund carbon cuts.

Eco-Products has raised $2 million in Series A funding from Greenmont Capital Partners. 

Tata Power is purchasing 29.4 million shares in Geodynamics, an Australian geothermal energy company, at A$1.50 per share, and 14.7 million options, for A$44.1 million (US$37 million).

Moser Baer India Limited is raising Rs 411 crore for its PV subsidiary from a group of investors including Nomura, CDC Group, Credit Suisse, Morgan Stanley, IDFC PE and IDFC. The funds are being used for capacity expansion of its crystalline silicon and thin film solar verticals to 180MW and 120MW, respectively.

Southridge Enterprises (OTCBB:SRDG) sold a 20% interest in its El Salvador ethanol facility for $4 million to Beijing-based Shenyang Rrzk Co. Ltd. The plant is expected to have a maximum capacity of 20 million gallons per year.

Nevada Geothermal (OTCBB:NGLFP) closed a $180 million loan facility through TCW Asset Management for the construction of the Blue Mountain phase 1 geothermal power plant. The "Faulkner 1" geothermal plant will have a 49.5MW capacity (gross) and electricity generated will be sold to Nevada Power Company under a 20-year PPA.

Raser Technologies (NYSE:RZ) closed initial funding through Merrill Lynch for project financing and tax equity capital for development of its 10MW Thermo geothermal power plant near Beaver, Utah.

China BAK (Nasdaq:CBAK) closed a direct offering of 4,102,564 shares at $3.90 per share, for an aggregate purchase price of $16 million.

NaturEner USA closed a $132 million construction facility arranged by Morgan Stanley and Banco Espirito Santo for its Glacier 1 wind farm in Montana. The wind farm will consist of 71 1.5MW wind turbines with a capacity of 106.5MW.  After Glacier 1 is complete, NaturEner plans to complete the Glacier 2 wind farm, which will have a capacity of 103.5MW.

GreenHunter Energy's (AMEX:GRE) subsidiary GreenHunter Renewable Power closed an acquisition of a 14MW biomass power plant, Telogia Power LLC  and Telogia Power Unit #2  from CQ BioPower Producers. The plant was originally constructed by GE in 1986 and has operated at a 90% capacity factor through early 2008. GreenHunter paid about $2.5 million in cash and has budgeted another $8.8 million for upgrades and renovation. It plans to have the plant back in commercial operation by Q1, 2009.

Upgrades and Downgrades

September 2 - GT Solar (Nasdaq:SOLR) initiated at BUY at UBS

September 2 - GT Solar initiated at NEUTRAL at Credit Suisse

September 2 - Raser Technologies (NYSE:RZ) reiterated at a SELL by Piper Jaffray, and a price target of $7.

September 2 - Energy Conversion Devices (Nasdaq:ENER) rated MARKET PERFORM at Janco Partners with a price target of $72.

September 2 - Scotia Capital launched coverage of alternative and renewable energy stocks with a long-term OVERWEIGHT recommendation.

September 4 - China BAK Battery, Inc. (Nasdaq: CBAK) rated HOLD at Roth Capital with a price target of $6.

September 4 - Beacon Power (Nasdaq:BCON) initiated at MARKET PERFORM at Northland Securities.

September 5 - Verenium (Nasdaq:VRNM) initiated at BUY with price target $6 by Lazard Capital

Reports and Research

Global Glacier Changes - Facts and Figures (Prepared by UNEP)

The report confirms that the average annual melting rate of glaciers appears to have doubled after the turn of the millennium, with record losses posted in 2006 for a key network of reference sites.

If the trend continues and governments fail to agree on deep and decisive emission reductions at the crucial UN climate convention meeting in Copenhagen in 2009, it is possible that glaciers may completely disappear from many mountain ranges in the 21st century.

Next Generation Biofuels: Taking the Policy Lead for the Nation

This publication represents the culmination of a year-long effort on behalf of the Commonwealth of Pennsylvania and the Chesapeake Bay Commission to guide the region to a leadership role in the nation's evolution to cellulosic biofuels. In the course of this effort, the issues of energy independence and the economy assumed new importance as gasoline and grain prices reached record highs.

Against the backdrop of these unprecedented challenges, our Biofuels Advisory Panel developed a roadmap to develop the next generation of biofuels using a new set of feedstocks independent of food crops that can be grown sustainably with greater environmental benefits for our lands and waters. (Governor Ed Rendell (PA) and the Chesapeake Bay Commission)

Climate Projections Based on Emissions Scenarios for Long-Lived and Short-Lived Radiatively Active Gases and Aerosols

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The biofuels segment closed down 10% this week, as concerns about high feedstock prices and tight margins persist. There wasn't any company that closed in positive territory but probably the most positive remark came from Lazard's initiation of Verenium (Nasdaq:VRNM) at a BUY and a $6 price target. YTD, the group is down 48%, with only the Anderson's (Nasdaq:ANDE) managing to tread water.

The energy management segment closed down 11%, led by PowerSecure (Nasdaq:POWR), which closed down 20% on light volume throughout the week. Year-to-date, the group is down 48%, with only Itron (Nasdaq:ITRI) in positive territory, up 2%.

The energy storage segment closed down 9% on the week, with all 15 companies in our index failing to close in positive territory. Plug Power (Nasdaq:PLUG) led the laggards, down 19%, while Mechanical Technology (Nasdaq;MKTY) shed 18%  after moving down to a smaller Nasdaq exchange and laying off 29 workers. YTD, the group is up 12%, which is a little deceiving in light of the fact that Quantum Fuel Systems (Nasdaq:QTWW) is up 122%.

The geothermal segment closed down 12% this week, led by Raser Technologies (NYSE:RZ) which was down 18%, despite continuing to post progress in terms of its plant in Beaver County Utah and the promise of the west Java concession. The Sell recommendation from Piper probably didn't help though. Year to date, the group is down 26%, again, led by Raser, which is down 51%. The performance of Raser's stock is misleading, we think, in light of the fact that it got way ahead of itself last fall and earlier this year. The outlook for its business remains positive we think, and we think any dips into the $5 to $7 range are strong opportunities to accumulate. Ormat (NYSE:ORA), has also been showing some surprising weakness, down 10% on the week, and 18% YTD.

The upstream solar segment closed down 7% this week, led by a selloff in MEMC (NYSE:WFR) after management made downbeat comments on demand from semi customers. The good news in the segment is that polysilicon and solar wafer prices remain high, which suggests that it is holding up well in the face of the upcoming expiration of Spain's subsidy program. The average price of polysilicon has been around $400 to $450 per kilogram, down from the $515 level hit earlier this year. The price of a 6-inch multi-crystalline wafer is about $11 to $12, up from $9. Year-to-date, the segment is down 29% with only PV Crystalox (PVCS.L) and DC Chemical (010060.KS) in positive territory.

The midstream solar segment closed down 10% this week, with every company in our index in negative territory. The group had been performing well in the past couple weeks, so the pullback isn't too much of a concern, especially given the gloomy broader macroeconomic news that has been impacting the broader markets. Year-to-date, Energy Conversion Devices (Nasdaq:ENER) remains the star in the segment, up 97%, while Ersol Solar (ES6.DE) is the only other issue in our midstream index in positive territory. The group is down 30% YTD.

The downstream solar segment closed down almost 10% as well this week, led by Clear Skies Solar (OTCBB: CSKH), which was down 27%. No companies managed to get close the week out in positive territory amidst broader market weakness and concerns in the segment about the future of tax credits. YTD, the group is down 44%

The solar equipment/systems segment closed down 4% on the week, led by GT Solar (Nasdaq:SOLR) and Spire (Nasdaq:SPIR). BTU International (Nasdaq;BTUI) was the only one in the group that posted a gain, up 6%. YTD, the group is down 14%.

The wind segment closed down 5%, led by American Superconductor (Nasdaq:AMSC) and A-Power Energy (Nasdaq:APWR), down 13% and 12% respectively. The volume-driven selloff in A-Power's stock is a concern, heading into the weekend, and the stock slipped further in after-hours trading to $17.79, down an additional 4%. Year-to-date, the segment is down 11%, and A-Power is the leader in positive territory, up 40%.

About Aspire Clean Tech Communications, Inc.

Based in San Diego, Aspire Clean Tech Communications is dedicated to providing strategic consulting and communications services to businesses operating in the alternative energy and clean tech industries. Our commentary and outlook on the public markets and the alternative energy can be found on a daily basis at www.smallcappulse.com.

For more information about Aspire Clean Tech Communications, Inc., contact Todd M. Pitcher at 858-518-1387.

This Aspire Week in Review was sponsored by Comanche Clean Energy, Inc., a leading Brazilian ethanol and biofuel firm bringing the lowest cost and most efficient alternative energy solutions to the world, and Hayden Communications, Inc., Wall Street's leading corporate communications firm. For more information about Hayden Communications, call 646-536-7331, for more information about Comanche Clean Energy; contact Todd M. Pitcher at 858-518-1387.

The Aspire Week in Review is brought to you by Small Cap Pulse the best source on the web for financial and economic commentary, stock recommendations, and a fresh idea. To learn more about Small Cap Pulse, call 858-509-9900.

Disclaimer: Information has been obtained from sources considered to be reliable, but we do not warrantee that it is accurate or complete. This material is not an offer to sell or a solicitation of an offer to buy any securities. While we believe all sources of information to be factual and reliable, in no way do we represent or warrantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO HIS OR HER OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. COMMON STOCKS INVOLVE SUBSTANTIAL RISK AND IT IS POSSIBLE TO LOSE YOUR ENTIRE INVESTMENT.   This information is not an endorsement of the Company by SCP. SCP is not responsible for any claims made by the Company. You should independently investigate and fully understand all risks before investing. Statements included in this email or fax may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Registration Statement and in its Reports on Forms 10-K and 10Q filed with the Securities and Exchange Commission (SEC).