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By Jennifer Lee April 2006

While concerns are increasing over how long global oil supplies will match consumer needs, the pathway is widening for companies offering technological and environmental solutions. With increasing support from a Federal level and individual States increasing their incentives for energy saving products, companies already establishing themselves in this sector are also in a position to expand their product lines and reach into new areas being promoted at a government level. SunPower Corporation (NASDAQ: SPWR), Alchemy Enterprises Ltd. (OTCBB: ACHM), Encore Clean Energy Inc. (OTCBB: ECLNE) and Honda Motor Co. Ltd. (NYSE: HMC) discuss their vision on technology, innovation and market drivers in the changing energy sector.

On a recent visit to the National Renewable Energy Laboratory, President Bush spoke about the country's potential to become less dependent on non-renewable sources. During his presentation he clarified: "What I'm talking about is a comprehensive strategy. In other words, we're not relying upon one aspect of renewable energy to help this country become less dependent. We're talking about a variety of fronts." As we see states moving to increase their energy saving incentives, offering rebates to consumers who opt to purchase energy wise products, the reach of these state policies can be felt across many sectors.

According to the U.S. Department of Energy, Secretary Samuel W. Bodman made the announcement on April 3rd that, "$140.3 million in weatherization program grants (will be designated) to 31 states and the Navajo Nation to make energy efficiency improvements in homes of low-income families." The Department conferred that, "weatherization can reduce an average home's energy costs by $358 annually."

Such a future for world supplies of oil present hybrid and fuel cell manufacturing companies with an entry point into the market. As these opportunities continue to present themselves, the changing shape of transportation design and delivery should follow a pattern of competition among global leaders already entering into this realm.

Innovation and Expansion As the market grows, we are seeing companies such as Honda Motor Co. Ltd. (NYSE: HMC) expanding their range of services, with the launch of a compact household cogeneration unit, which combines "the world's smallest natural gas engine-with an efficiency configured, compact, lightweight power generation system employing Honda's unique sine-wave inverter technology to create a compact unit suitable for residential use, boasting an energy efficiency of 85%." According to the company, the use of this unit in combination with a heating system which uses "recovered exhaust heat is expected to result in approximately 30% reduction in CO2 emissions."

Honda supplies these units to Climate Energy LLC, headquartered in Boston Massachusetts. According to a release issued by the Climate Energy, the Micro-CHP System is, "conveniently configured to replace existing space heating furnaces and boilers in new and existing homes. The concept is simple: electric power is produced as a by-product of the normal supply of heat to the home. The result can be dramatic; lower electric bills will be experienced by homeowners, while ultimately lowering the nation's overall energy use and pollutant emissions."

World Oil Supplies Taking a look at the future of fuel supplies available to meet global demand is a pressing topic for investors and consumers alike. The U.S. Department of Energy (DOE) recently released a report in February entitled, "Peaking of World Oil Production: Impacts, Mitigation & Risk Management," authored by Robert L. Hirsch, Roger Bezdek and Robert Wendling. Under a section dealing with the topic of current oil resources, it states that "because oil prices have been relatively high for the past decade, oil companies have conducted extensive exploration over that period, but their results have been disappointing. If recent trends hold, there is little reason to expect that exploration success will dramatically improve in the future."

The solution to the current oil dilemma presents a challenge for enterprise, in such a respect that fuel efficient vehicles must be made affordable and practical for end users. Speaking at a scheduled talk entitled, "National Security: High Mileage Vehicles and Alternative Fuels" at a renewable energy and fuels convention in Las Vegas April 11th this year, Roger Duncan of Austin Energy, spoke about the state's Plug-in Partners National Campaign. The initiative involves the use of plug-in hybrid vehicles (PHEVs) which are, "outfitted with a battery pack sufficient to power the vehicle from 20 to 60 miles on battery charge alone. Considering that half the cars on America's roads are driven 25 miles a day or less, a plug-in with a 25-mile range battery could eliminate gasoline use in the daily commute of millions of Americans." DaimlerChrysler is already making a Sprinter Van prototype which has an 'all-electric' range of 20 miles.

Panelists at this talk tended to agree that bigger batteries needed to be allocated to hybrid vehicles in order to make them more efficient and useful in the fight against oil dependency. Speaking on the energy front overall, a report issued by Pricewaterhouse Coopers entitled, "The Big Leap: Utilities Global Survey 2006,"

Gradually, the solutions for today's current energy dilemmas are being introduced on a scalable level. Making renewable energy affordable, convenient and accessible continue to be the challenges associated with opening the way forward in this market. Since the introduction of the Energy Policy Act of 2005, the impact is gradually being felt, but the emphasis could continue to be left with the end users, who are suggested to be the primary market drivers for this sector.

Three factors which continue to affect levels of investment in this sector are regulatory uncertainty, oil shortages and the growing demand to boost US security and lessen the dependence on foreign oil reserves. As regulations change per state on a continual basis, the market will evolve to meet the demands of government, but end users must be able and informed about the options they can afford. As US security becomes a heightened issue however, this industry may get the added boost and incentive it needs to bridge the gap between capital investment, product manufacture and end user purchasing. Full article: http://www.renewableenergystocks.com/Articles/Renewables_Market.asp Disclaimer

Jennifer Lee Jennifer Lee has a degree in English Literature from the University of British Columbia. She holds a publishing certificate from Simon Fraser University and has worked at both Vancouver and Western Living magazines, where she began her career as an editorial intern. She has worked as an editor in countries such as Zimbabwe and South Africa, producing books, newsletters and editing various quarterly magazines on a variety of international development related topics. In South Africa, she worked to help produce a bi-weekly newsletter for the Institute for Security Studies on crime and corruption headlines which appeared in all national and provincial papers. Prior to working in southern Africa, she wrote articles for DMR Consulting Group, on mergers and acquisitions taking place in the market during 2001. She now produces a quarterly publication at the University of British Columbia.

InvestorIdeas.com Disclaimer: www.InvestorIdeas.com/About/Disclaimer.asp, InvestorIdeas is not affiliated or compensated by the companies mentioned in this article. Catherine Lacoursiere is a freelance writer. Nothing in the articles should be construed as an offer or solicitation or recommendation to buy or sell any specific products or securities. Past performance does not guarantee future results.

About the Author

Jennifer Lee has a degree in English Literature from the University of British Columbia. She holds a publishing certificate from Simon Fraser University and has worked at both Vancouver and Western Living magazines, where she began her career as an editorial intern. She now produces a quarterly publication at the University of British Columbia.