Time to Add Some Green to Your Portfolio

By Tobin Smith

In a perfect world, we will produce our energy from zero-cost/zero-pollution energy sources: wind, solar, geothermal, nuclear and, to a lesser degree, fuel cells and non-food-based biofuels.

The oil-based economies have to become sustainable green energy-based economies. The math is inescapable: There is not enough oil or natural gas to come close to meeting the transportation and electrical power needs of the 2 billion people who recently joined the global economy.

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In the not-so-distant future, the world will look a lot like Denmark, which already produces about 20% of its total electricity consumption from wind -- and that figure will approach 25% this year.

The future world will run its electrical power on direct current (DC), not alternating current (AC), and transfer sustainable electrical power around the world -- from sunny or windy locales to dark and windless ones.

The future home will have a fuel cell that will take a sip of natural gas and convert it into enough electrical power to remove your home from the power grid and provide extra for you to sell to your neighbor -- all for around $10,000.

You will pay for that fuel cell or solar system with a power purchase agreement (PPA) that will be financed by a new government-sponsored entity -- the alternative energy financial secondary market.

This entity will finance $2 trillion to $4 trillion in PPAs around the United States, creating more than 1 million new high-paying jobs and eliminating 20% of fossil fuel consumption.

The Future Looks Bright: Solid-State Lighting and Plug-In Autos

Oh, and you won't ever have to replace a light bulb again. Solid-state lighting powered by white light LEDs from Cree (CREE) and Luminex will last 50,000-75,000 hours. Your new goal in life will be to outlive your LED light bulb.

The not-so-distant world will plug its automobile into an outlet powered by a solar panel or fuel cell in your company's parking lot or at the local shopping center. Wal-Mart (WMT) may even offer to use the excess power it generates from its fuel cells and solar panels to charge your car as an incentive to shop at its stores.

Iron phosphate will replace lithium ions, and the new batteries will hold 20 to 100 times more power.

Talk will turn to action on the glucose economy -- the technology of turning the world's most abundant sugar into biofuel. Many will have an EFuel100 MicroFueler tank in their garage that turns sugar into biofuel for as little as a dollar per gallon.

Gigawatt coal plants costing $1 billion or more to develop will be replaced by $1 billion solar power plants that produce energy for $1 per watt -- with the capacity to produce at least a gigawatt of power with no energy cost or pollution. Solar systems from companies like Sungri are able to convert sunlight into electricity for around 5 cents per kilowatt hour (kWh) -- 50% less than the magic grid parity pricing.

Finally, excess solar-generated electrical power will be stored in vast molten salt storage facilities for nighttime.

Creating a World That's Not Dependent on Fossil Fuels

In short, we are in the early innings of reinventing our world without dependence on fossil fuels. Not because it's the "right" thing to do, but because it's the only way the 21st-century world will work.

You and I will want to have a significant part of our investment portfolio riding this $100 trillion transformation. At ChangeWave Investing, we'll show you how to diversify your bets and make a fortune no matter what energy technology breakthrough wins the day.

It's going to be a new world, and your wealth and health will be determined by how you invest in it.

Toby Smith is Editor of ChangeWave Investing.