All forms of Energy Investment Increasing
Investment and interest in all forms of energy technology and research is increasing at a breathtaking rate these days. Energy companies and products of all sorts are attracting a vast amount of capital which is good news for those interested in alternative power sources such as low energy nuclear reaction (LENR or cold fusion).
Some recent energy investments that have attracted a lot of attention include:
- Tesla Motors (TSLA)’s plans to spend $5 billion to build a gigafactory a plant capable of manufacturing enough batteries to provide a gigawatt (one billion watts) worth of energy for electric cars. News reports indicate that five US states providing up to $500 million in tax credits to attract the factory which could provide up to 6,500 jobs. The gigafactory plans prove that Tesla is actually an energy company not a car company’s. The real motive of Tesla boss Elon Musk is to promote electricity as an energy source not to build cars. Tesla hasn’t turned a profit yet but it’s stock was trading at $248.13 a share on August 8, 2014.
- Musk’s other energy company SolarEnergy Corp (SCTY) is already on course to provide a gigawatt worth of electricity to US homes and businesses this year Bloomberg reported. Musk hopes that SolarCity will one day provide tens of gigawatts or tens of billions of watts of electricity to people all over the world. SolarCity recently spent $200 million to purchase a solar panel maker called Silevo. It plans to convert a Silevo plant in Buffalo into a second Gigafactory to build vast numbers of solar panels. SolarCity is financed through leases on solar panels. SolarCity’s stock was trading at $70.14 a share on August 8, 2014.
It goes without saying that Musk’s SolarCity enterprise would be an excellent business model for a future LENR company. Leasing of LENR units to business and homeowners could finance a new energy industry. A gigafactory type production center would be the best way to mass produce LENR units and get them out to the public.
Musk’s success with SolarCity and Tesla shows that there is strong market demand for better energy sources particularly ones that don’t rely on the grid or fossil fuels.
The interesting thing is that Musk’s power sources are not that great. SolarCity’s best solar panels have an energy efficiency level of around 21% a present generation gasoline engine has an efficiency level of around 30%. Rechargeable lithium ion batteries like those used in the Tesla have an energy density of between .25 and .73 kilowatt hours of electricity. That means they have an energy efficiency level between 25% and 73%.
So it’s easy to see why Cherokee Partners invested $11 million to acquire Andrea Rossi’s unproven ecat LENR technology. Rossi has claimed it could have 10,000 times the energy density of gasoline.
The interest and investment attracted by Musk’s energy efforts bode well for technologies like LENR. The market recognizes the need for new energy sources and is ready to fund them. Investors need to start taking advantage of the situation.