US solar sector bucks negative trend

August proved another difficult month for cleantech stocks, with many companies across Europe seeing their share prices register double-digit falls.

Notable exceptions were Centrotherm Photovoltaics, a German company which makes manufacturing equipment for solar silicon and module producers (see page 3), French wind power firm Theolia and Austrian hydropower utility Verbund.

Shares in Theolia increased by 63% to €1.71 each during August after the firm bolstered its balance sheet following completion of a €60 million fundraising in July, before reporting record revenues for the first half of this year.

€4.1 billion market cap Verbund saw its shares gain 3% last month as Austria’s Government received permission from the country’s parliament to subscribe to €510 million of shares in a planned capital increase of £1 billion, which would mean the Government retaining its 51% ownership of the business. Verbund, which operates more than 120 hydropower plants with a combined capacity of almost 7.5GW, is Austria’s largest power provider.

Other gains in Europe were made by Germany’s Aleo Solar (up 4.8%) and French cleantech firms Aérowatt (up 10.2%), Environnement (up 4.8%) and Europlasma (up 12.1%).

Across the Atlantic, shares in various solar sector companies held up well. The best performer was GT Solar, a manufacturer of equipment needed to make solar-grade silicon, whose share price increased by 16.2% to $7.73. At the beginning of the month, the $1.1 billion market cap firm reported a significant increase in first-quarter results for its 2011 financial year, along with a 120% increase in its Q1 earnings per share to $0.11.

Meanwhile, cleantech IPOs continued to gather pace with news that Florida-based biomass fuels business PetroAlgae plans to raise up to $200 million via a share offer in the US (see page 8). Another biofuels company, Colorado-based Gevo, also filed for an IPO with the Securities and Exchange Commission in August. It hopes to raise up to $150 million.

Back in Europe, Italian utility Enel is looking to reduce its debt position with a £3 billion stock flotation of its renewable energy business ENEL Green Power.
 

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AIM Comment

AIM - a tough market for cleantech compnies - by Andrew Hore

Although a few new entrants have joined AIM this year, cleantech companies are still leaving the junior market. Stock markets around the world are becoming tougher places to raise money again, but the problems with the latest company to shun its AIM quotation date back to its flotation and lack of financial progress since, rather than current market conditions.

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Editor´s Message

by Anne McIvor

The Solyndra collapse in the US has damaged investor sentiment throughout the solar industry. In an unrelated move, the UK Government has backtracked on its policy to provide feed-in-tariffs (FiTs) for the solar sector. The UK Government’s argument is that the prices of solar modules have fallen substantially since the policy was first put in place, and that the FiT subsidy now permits solar installers to make an unjustifiable return on their investments.

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Cleantech Utility Comment

UK Energy Policy – Prescribed by Germany and France? - by Nigel Hawkins

The last few weeks have been busy times in the EU and UK energy sectors – and the next few months are unlikely to be any different. 

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