What is Alternative Energy?
The price of oil is skyrocketing. The temperature of the Earth is rising. Spurred by these worrisome increases, alternative energy has emerged as one of the fastest-growing markets in the past few years.
Alternative Energy generally includes renewable energy sources such as solar, wind, geothermal, biofuel, hydrogen and biomass. Also included in the Alternative Energy category are the technologies that make renewable energy sources practicable, as well as services and technologies that promote the conservation or more efficient use of conventional energy sources.
Solar Power
Solar power (or solar energy) is the capture and application of usable energy from the Sun. The solar industry can be divided into two general types: 1) Solar photovoltaics (PV for short) are used to generate electricity. 2) Solar thermal uses heat from the Sun to generate hot water. Although enormous in China and in several developing countries, solar thermal offers virtually no investment opportunities for stock investors. Solar PV, however, is becoming an increasingly popular (though still expensive) investment throughout the world.
Wind Power
Wind power is the conversion of wind into electricity using wind turbines. Large-scale wind farms provide power for national electrical grids, whereas small individual turbines are used to provide electricity to rural areas and locations outside the electrical grid.
Hydrogen Fuel
Hydrogen is a clean-burning fuel that’s produced when carbon is removed from fossil fuels such as coal, oil and natural gas. Hydrogen can be combusted directly or stored in fuel cells. Many futurists hypothesize the shift to a fully hydrogen-based economy, but the technology to produce, store and transport hydrogen power at a reasonable cost is still many years away.
Biomass
In terms of energy production, biomass refers to living and recently dead biological material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter (e.g., corn, hemp, poplar) grown for use as biofuel, but it also includes plant or animal matter used in the production of fibers, chemicals or heat. Biomass may also include biodegradable wastes that are burned as fuel.
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