Innovative Investment Examples By investing in Calvert Global Alternative Energy Fund, you can seek to grow your capital through investments in companies whose main business is alternative energy or are significantly involved in the alternative energy sector. Here are some examples of companies that met the Fund’s investment criteria as of September 30, 2010.
WIND ENERGY: Iberdrola Renovables (IBR)
Iberdrola is the largest global wind-farm operator and a market leader within this mature and scalable renewable energy sector. With an impressive portfolio of renewable energy projects--totaling over 11,000 megawatts (MW) worldwide as of mid-2010--no other company boasts as much experience in installing, designing, and managing wind farms. Since Iberdrola Renovables went public in 2007, its strategy has been to expand its project portfolio more rapidly than any other wind-farm operator—with future pipeline projects as of mid-2010 estimated to reach over 61,000 MW in capacity. The company's business is primarily focused on the wind energy market, but Iberdrola Renovables has also developed small hydroelectric power projects, solar thermal energy technologies, and even advancements in other areas such as biomass energy and wave and tidal power.
SOLAR POWER: First Solar (FSLR)
Based in Phoenix, Arizona, First Solar makes solar-power modules using an innovative thin-film semi¬conductor technology. First Solar’s products do not use polycrystal¬line silicon (polysilicon), which can be an advantage because there have been shortages of polysilicon on the past. Instead, the company uses another industry’s waste—specifically, mining waste. First Solar coats solar-panel glass with cadmium sulfide and cadmium telluride, which are byproducts of mining and smelting operations. As a result, First Solar’s production costs are lower than those for companies that manufacture traditional silicon-based solar panels.
First Solar’s manufacturing process does not produce any detectable air emissions. In addition, First Solar purifies residual water and purifies and recycles almost all solid manufacturing wastes from its manufacturing process. First Solar is the only publicly traded renewable energy company whose product life cycle is “closed loop.” Over 90% of each solar module from First Solar can be returned free of charge and recycled into new modules.
CLEAN ENERGY INFRASTRUCTURE: Acciona (ANA)
Acciona is a sustainable energy company that specializes in technology and infrastructure designed to help make alternative energy generation more efficient. The company, which is based in Spain, is involved in wind, solar, biomass, and other forms of alternative energy. In particular, Acciona develops technologies that are applied in sustainable construction materials, specialized information technologies for use in the alternative energy field, and advanced technologies for wind and solar energy generation.
A good example of an application of Acciona’s technology is the Nevada Solar One project in Boulder City, Nevada, which uses the company’s concentrating solar power technology. This technology tracks the sun’s location and concentrates its rays, thus enabling more efficient use of the sun’s power. The Nevada Solar One plant uses more than 180,000 mirrors to direct the sun’s rays onto more than 18,000 receiver tubes. Fluid flowing through these tubes heats up to over 700 degrees Fahrenheit. This produces steam that drives a turbine, which in turn is connected to a generator to produce electricity. Energy from the project powers 14,000 homes in Nevada annually.
A Word of Caution
While we may be optimistic about the prospects for companies in the alternative energy sector such as the aforementioned, we suggest that you keep in mind certain risks. The alternative energy sector can be significantly affected by obsolescence of existing technology, short product life cycles, falling prices and profits, competition from new market entrants and general economic conditions. The sector can also be significantly affected by fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects and tax and other government regulations and policies. In addition, shares of the companies involved in the alternative energy sector have been more volatile than shares of companies operating in other more established sectors or industries.
Company holdings represented the following percentages of assets under management in the Calvert Global Alternative Energy Fund as of September 30, 2010: Acciona, 1.92%; First Solar, 4.35%; Iberdrola Renovables, 4.94%. Calvert may or may not still invest in, and is not recommending any action on, companies listed. For current information, see individual holdings on www.calvert.com. Current and future portfolio holdings are subject to market risk.
For more information on any Calvert fund, please contact Calvert at 800.368.2748 for a free prospectus and/or summary prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest or send money.
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