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Zacks Industry Outlook Highlights: Royal Dutch Shell, BP, Covanta Holding, Ormat Technologies and OriginOil

Abhijit Ghosh

For Immediate Release


Chicago, IL – October 19, 2012 – Today, Zacks Equity Research discusses the U.S. Alternative Energy, including Royal Dutch Shell plc (RDS.A), BP plc (BP), Covanta Holding Corporation (CVA), Ormat Technologies Inc. (ORA) and OriginOil Inc. (OOIL).



A synopsis of today’s Industry Outlook is presented below. The full article can be read at  

Link: http://www.zacks.com/stock/news/85076/alternative-energy-stock-outlook-october-2012


Environmental advantage: Solar power is the most benign electricity resource. Solar cells generate electricity without air or water emissions, noise, vibration, habitat impact or waste generation. Over time, rapid population growth, depletion of non-renewable conventional sources, and escalating pollution levels will help shape a much more pronounced global focus on renewable projects.

The long-term bullishness is shared even by oil goliaths like Royal Dutch Shell plc (RDS.A) and BP plc (BP) who expect that by fiscal 2050, one-third of the global energy needs will come from renewable sources.

In this space we are bullish on waste management service provider, Covanta Holding Corporation (CVA), which has tied the majority of its service contracts under long-term agreements with inflation escalators.

Fuel risk advantage: Unlike fossil and nuclear fuels, alternative energy has no risk of fuel price volatility or delivery risk. Although there is variability in the amount and timing of sunlight in the day, season and year, a properly sized and configured system can be designed to ensure high reliability while providing a long-term, fixed-price electricity supply.

In this context the one name we are bullish about is Ormat Technologies Inc. (ORA), which engages in the geothermal and recovered energy power business. Another innovative player in this field is OriginOil Inc. (OOIL) which engages in the development of technologies to help companies produce algae to replace petroleum in various applications.

In light of the Fukushima Daichi episode in Japan, the global focus has tilted towards solar in a big way. Germany plans to phase out nuclear power plants by 2022. This move will definitely boost solar fortunes in one of its largest global markets.




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Read the analyst report on RDS.A

Read the analyst report on BP

Read the analyst report on CVA

Read the analyst report on ORA

Read the analyst report on OOIL

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