By Jan Schalkwijk, Guest Writer

JPS Global Investments

San Diego, CA - After roughly two decades of cheap oil, the world has changed. The price of oil has climbed from under $25 per barrel in September 2003 to almost $100 per barrel in November 2007. Yes, a 400% increase. Combine that with the alarming statistics on climate change, and the stage is set for either disaster or a revolutionary shift to a more sustainable world economy. Being an optimist, I think the latter is the case, and companies developing clean technologies hold some of the keys to success, both for their shareholders and the world.

Roughly, Clean Tech breaks down into alternative fuels, transportation, renewable energy, and efficiency. Let’s talk efficiency first: here we can perhaps make the most dramatic improvements. The greatest opportunity for efficiency solutions relates to our infrastructure, particularly our buildings. In the U.S., buildings account for 48% of total energy consumption and as much as 76% of the energy produced at coal-fired power plants, according to the US Energy Information Administration. At current rates, we are adding 2 parts per million (ppm) of CO2 to the atmosphere, which would put us in the scientifically-agreed-upon danger zone of 450 ppm by 2035. A significant decrease in coal consumption would give us more time and perhaps allow us to avoid the 450. The obvious solution here would be to build more efficient buildings, reducing the need for coal-fired plants.

From an investor’s stand point, the Clean Tech opportunities are everywhere, but one has to proceed with caution. Is it worth buying a solar stock that is trading at 600 times earnings and just quintupled over the last year? One sensible way of going about it, is to look for diversified companies that also have a solar division. These companies are not solely trading on solar “hype” but on their other business lines as well and may come cheaper.

Also, not all ideas are good ideas, particularly if the federal government is behind it. Think corn-based ethanol. A year ago, the administration, Main Street, and Wall Street were all in love with corn ethanol on the grounds of energy independence and the environment. Now, it is thought by many, including the Organization for Economic Development and Cooperation, that the cure is worse than the disease. The price of corn is up; the price of ethanol is not. Ethanol producers are getting squeezed, higher corn prices risk food security issues in countries that import corn, and the environmental benefits may be a wash at best. The advice to investors is to be patient and not give in to the greed factor, diversify into different technologies, and use common sense. Not every bandwagon is worth jumping on; especially if it is loaded with corn.

When investors pile into a stock, the prospect of excess return is quickly reduced by a run up in share price. If you are able to find an area of the market where others are not yet looking, you may find some interesting opportunities. Take the global shipping industry for example. This industry is a very significant source of greenhouse gasses, but has received little media attention in this regard. Ships carry over 90% of global goods by volume. Moreover, this volume has tripled since 1970. A study conducted by the International Council on Clean Transportation concluded that ships release more sulfur dioxide than the entire global fleet of cars, trucks, and buses combined and an estimated 27% of global nitrogen oxide emissions. If the shipping industry were a country, it would rank number seven in terms of total greenhouse gas emissions. The problem is bunker fuel, a tar like sludge by-product of the petroleum refining process. This is the main fuel used in shipping. The market place is screaming for a solution, and the companies that will provide it will stand to prosperous handsomely. Here are some early possible solutions: Wallenius Wilhelmsen Logistics wants to use solar, wave, and wind energy to power ships on their voyage. SkySails, is developing large para-sails that can reduce a ship’s fuel cost by 35%, with the first application to launch in December. The sky is clearly the limit here.

Another Solution: the up and coming Ethos Environmental, Inc., a San Diego based company that is on a mission to be recognized as the "industry standard" for high quality, non-toxic cleaning and lubricating products that increase fuel mileage and reduce emissions.

One of the company's most anticipated products, Ethos Bunker Fuel Conditioner, tested in Esmeraldas, Ecuador, is specially designed to aid global shipping industry and any other mechanical equipment that uses bunker fuel. See the test results below:

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