TransAlta Corporation (USA) (TAC), SunPower Corporation (SPWR): Three Ways to Invest in Renewable Energy

SunPower Corporation (NASDAQ:SPWR) is also improving overseas prospects by signing new contracts in Japan. But Europe, Middle East and African (EMEA) sales need to improve, as sales there declined by 55% from the previous year. Gross margins were a negative 33%.

Investing in ethanol

Ethanol fuel production tripled between 2000 and 2007, from 4.5 billion gallons to 14 billion gallons. In 2011, the production reached 22.36 billion gallons. The global consumption increased from 3.7% to 5.4 % between 2007 and 2008.

Green Plains Renewable Energy Inc. (NASDAQ:GPRE) looks to profit from ethanol. The company operates ethanol products, argribusiness, corn oil production, and a marketing and distribution segment. The company appears to be in a healthy position for growth. On June 3 it announced its purchase of Choice Ethanol Holdings. That dry-mill ethanol plant will provide an additional 50 million gallons of capacity for the plant. Its current operating capacity is 740 million gallons.

Investing in renewable energy

Renewable energy is an unproven sector, which poses both opportunity and risk. While these companies have a lot of upside if their respective sectors become mainstream, they could also crumble if their industries don’t present practical widespread use. For the risk-averse investor, I recommend TransAlta Corporation (USA) (NYSE:TAC), due to the company’s diversification.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Ways to Invest in Renewable Energy originally appeared on Fool.com is written by Phillip Woolgar.

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