Pres. Obama to Nation - Our Economic Recovery 'Begins With Energy'
WASHINGTON, Feb. 25
WASHINGTON, Feb. 25 /PRNewswire/ -- President Obama's first speech to a Joint
Session of Congress last night was almost entirely devoted to the troubled
economy. Amid a deepening recession Obama described the $787 Billion stimulus
as one of the bold steps his five week old administration is implementing to
turn the US economy around.
In the speech, Obama vowed to spend $15 billion a year to develop renewable
energy. "We know the country that harnesses the power of clean, renewable
energy will lead the 21st century," he said. The administration's Secretary of
Energy, Stephen Chu, announced on Monday an immediate fast-tracking of all
applications from wind and solar companies for stimulus dollars to kick-start
the construction of more projects.
Assuming wind companies receive the lion's share of stimulus dollars (wind
power accounted for 95% of the renewable energy built over the last five
years), the stimulus is expected to lead to the construction of
30,000-megawatts of additional capacity, according to Hugh Wynne, an analyst
at Bernstein Research - enough new wind power to supply 9 million American
Wind farm developer NACEL Energy (OTC Bulletin Board: NCEN) CEO Brian Lavery
said, "We ran the numbers and the impact as we understand the new stimulus
incentives for wind power are really quite significant." NACEL has four wind
power projects underway in the Texas Panhandle. Advisory Research has a
positive rating on NACEL and a $3.07 valuation.
Accelerating construction of wind farms is also expected to lead to a recovery
in the turbine market in the second half of 2009. In recent months
manufacturers General Electric (NYSE: GE) and Vestas (Pink Sheets: VWDRY), as
well as companies which supply the carbon fiber for turbine blades such as
Hexcel (NYSE: HXL) and Zoltek (Nasdaq: ZOLT), have all experienced slowing
demand. Yesterday KeyBanc Capital Markets announced a new buy rating on Hexcel
and a $10 valuation.
Before the Bell Publishing LLC advises C.M. Biddick is a member of the
Financial Industry Regulatory Authority (FINRA) CRD number 2382884
SOURCE Before the Bell Green Energy Watch
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