Our Investment Areas

At the New Alternatives Fund, we aim to make investments that will impact the environment in a positive way.

Renewable Energies
 
Renewable energies are energies that are cleanly produced from natural resources. Unlike fossil fuels (natural gas, coal, oil), renewable energies will never disappear, and in addition they cause less pollution. While renewable energy technologies do have some drawbacks, our view is that their positive benefits far outweigh any negative considerations. Below are the renewable energy sources in which we invest at the present time:

Wind Energy 
The latest generation of wind turbine technologies have boosted the cost efficiency of wind and increased its popularity. As a result, recently established wind energy developments are often cost-competitive with conventional energy technologies. Unfortunately, the older generation of small wind turbines were responsible for killing some birds, but the new-generation, larger turbines alleviate this problem by rotating at a lower speed and being situated away from known bird migration routes.

Solar Energy
By harnessing the sun's rays, solar cells generate electrical power without causing any pollution. Their many applications include pocket calculators, garden lighting, Coast Guard buoys, house roofs and commercial establishment roofs. The efficiency of solar cells is increasing at the same time that their cost is decreasing. For example, the conversion efficiency of silicon solar cells rose from 4% in 1982 (when our Fund was first launched) to over 20% in the most recent generation of technologies. 
 
At the present time, however, their cost-effectiveness remains lower than that of utility-produced electricity, while they are also unsuitable for producing electricity at an industrial scale due to the great amount of space required. The practical applications and efficiency of solar energy are nevertheless increasing, and their cost is constantly declining.

Ocean Energy 
Our advisors expect that wave action, currents, tidal movements and water temperature differentials are poised to develop into a remarkable new source of clean energy. For several years, a turbine system set up in a river has already been productive in France, and new trials are also being conducted in the USA and Scotland. The historical problems caused by stormy weather, marine growths like barnacles, and the deterioration of metals in saltwater, have now largely been resolved through advances in the materials employed. The great advantage of harnessing ocean energy is that it is easy to understand and predict the time schedules of oceanic currents and wave action.

Hydroelectric Energy
Though very clean and already a major renewable electricity source, the use of hydroelectric energy is limited by geographical suitability. The former generation of larger hydroelectric dams caused problems for marine life, although considerable improvements have now been made, with attention being focused on low-impact and run-of-the-river hydroelectric power which is free of damaging environmental impacts.

Geothermal Energy
Geothermal energy is derived from heat emanating from sources below the Earth's crust. Steam produced by these subterranean heat sources is used to rotate turbines which generate electricity. One problem is that malodorous sulphur can sometimes be released.

Biomass Energy
Biomass energy is a broad category that denotes a variety of different fuels derived from biological sources.

Fuel cells and hydrogen

Fuel Cells
Fuel cells, sometimes known as "fireless electricity", are batteries that are not recharged but instead continuously supplied with fuel in the form of hydrogen and oxygen with their main by-product being drinkable water.

Fuel Cell Variations
Fuel cells vary greatly in their size, technologies and efficiency.

Fuel Cell Variations - Transportation Fuel Cells
A small number of buses in Europe and Canada are currently powered by fuel cells, while major car manufacturers are also building and demonstrating fuel-cell vehicles. Today's generation of vehicle fuel cells are unsatisfactory since they are still reliant on utility-produced electricity for the hydrogen fuel used, i.e. using electricity to make electricity!

Fuel Cell Variations - Large Stationary Fuel Cells
Fuel cells are being produced, sold and used for the local production of electricity. This is often referred to as distributed generation, and we see this as a particularly promising area of investment expected to be capable of competing economically with utility generation. Larger fuel cells are able to derive fuel from wastewater, biomass in dumps, gas from coal mines and gas emitted by breweries. The great heat generated by larger stationary fuel cells is able to separate the hydrogen from these raw fuels internally.

Fuel Cell Variations - Portable Fuel Cells
Though they have yet to be brought to market, miniature fuel cells promise to supply cell phones and laptops with electricity from ethanol and other liquid fuels.

Hydrogen
Hydrogen, which can be used in fuel cells or burnt with extremely low emissions, has been called the fuel of the future.

Where Does Hydrogen Originate?
The sources from which hydrogen is separated are fossil fuels (natural gas, oil, coal), biomass fuels (ethanol, waste gas) and electricity. The process whereby electricity is used to separate water (H2O) into hydrogen and oxygen is known as electrolysis. The electricity used often comes from conventional utilities, but may also be from renewable sources such as solar energy and wind energy. Stationary fuel cells can often create the hydrogen fuel required by means of the highly efficient reforming of methane, ethanol, natural gas and/or biomass.

Energy Conservation & Enabling Technologies

Energy Conservation
Examples of energy conservation are more efficient lighting, building insulation, motors and electrical equipment. Efficient window glass keeps hot or cold air inside the building while admitting natural light.

Batteries
We invest in companies that manufacture batteries used to store wind energy and solar energy or power hybrid vehicles. Such batteries are less toxic, more easily recharged and contain a larger electrical charge for a given weight and volume. In some cases, inverters may be required to convert direct current to alternating current.

Other Investment Areas

Recycling
Recycling saves both energy and natural resources. Our investments include paper recycling operations, and we intend to invest in other recycling operations such as steel and aluminium. The opportunities for recycling are affected by changing market conditions, meaning that, at different times, we have invested in the recycling of plastics, metals, paper and cardboard.

Natural Foods
We invest in enterprises dedicated to producing healthy, natural foods, with a particular focus on organically grown and pesticide-free products. The producers, distributors and retailers in this industry are currently prospering, but many of their products are more costly and sales growth may not be sustainable during challenging economic times.

Transportation
When suitable opportunities arise, we invest in railways, bicycles, canoes and kayaks that reduce pollution and save energy.

Clean Water
We invest in water companies with strong environmental records, as well as water filtration enterprises.

Clean Air
We invest in companies producing catalytic converters and other technologies for cleaning vehicle exhaust emissions. However, find enterprises that build and install utility and industrial apparatus is no easy task because the government has taken little action to impose the use of such equipment.

Natural Gas
Natural gas is the cleanest hydrocarbon fuel and is currently also the most promising source of hydrogen for fuel cells. We invest in natural gas utilities, most of which are stable companies that pay shareholder dividends. Many of our natural gas investments also support cogeneration and fuel cells.