Obama Stimulus Package to Include $25 Billion for Renewable Energy
January 15 2009 - 7:30AM
PR Newswire (US)
WASHINGTON, Jan. 15 /PRNewswire/ -- Congressional leaders together
with Barack Obama's new Cabinet are planning a $25 Billion stimulus
package in order to meet the President-elect's goal of doubling
renewable energy production in the next three years, according to a
report in Sunday's Washington Post. President-elect Obama's Cabinet
favors an $8.6 billion extension of the Federal Production Tax
Credit, a program that speeds-up the building of new wind power
generation projects. In addition, a bi-partisan initiative first
backed by Rep. Chris Van Hollen (D-MD) and Rep. Zach Wamp (R-TN)
for a National Clean Energy Lending Authority, is likely to be
approved by the Obama team. The new agency could receive as much as
$10 billion to extend low-interest loans, grants or guarantees to
wind, solar and other renewable energy projects. In the wind
sector, most turbine manufacturers are foreign owned and not likely
to qualify for stimulus dollars. Analysts expect U.S. based wind
power project builders, to be big winners. New Jersey's NRG Energy
(NYSE:NRG) which just completed its second wind project in the
Texas Panhandle, has received a buy recommendation from UBS.
Another wind power company with two projects underway in the Texas
Panhandle is Denver based Nacel Energy (OTC Bulletin Board: NCEN).
CNBC guest analyst Francis Gaskins has a $4 price target on the
company. Nacel Energy closed yesterday at $1.15. There are even
more U.S. companies to like in the solar sector. Analysts at
Stanford Capital have issued a buy on Evergreen Solar (NASDAQ:ESLR)
with a $3.70 target. Evergreen is based in Marlboro, MA, and is a
leading manufacturer of integrated solar modules. Needham and Co.
has a buy on New Mexico's Emcore (NASDAQ:EMKR) and a $2 price
target. Both Emcore's semiconductors and Evergreen's solar modules
expected to benefit from increasing demand as the Obama stimulus
plan is implemented over the coming months. A Before the Bell(TM)
renewable energy update. Before the Bell Publishing LLC
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