Photo: The Blaze
The cleantech industry is having another horrible year.Two out of three alternative energy sectors — renewable electricity and energy efficiency — appear to be floundering.
But the clean transportation sector looks ready to boom according to Bank of America.
BoA’s Steven Milunovich has eyed the electric vehicle industry as a good investment despite higher prices and public safety concerns. He anticipates that improved motor efficiency and stricter government standards on emissions will help offset high electric car prices.
Because the cost of transportation in the U.S. is tied closely with foreign oil prices, the industry has been looking for good alternative energy solutions.
Recent news of a Chevy Volt catching fire in a parking lot has raised electric vehicle safety concerns, but it has actually spurred growth in battery companies making newer safer batteries.
Two battery companies, Tesla and A123, scrutinized by BoA were both flagged with “Buy” in BoA’s latest report on the cleantech industry. Meanwhile, LG Chem who makes the Volt’s batteries may be running into trouble thanks to the parking lot fire.
Not only is BoA’s forecast inspiring, Ernst & Young also reported that energy storage companies, including battery manufacturers, drew the majority of venture capital investments in cleantech during Q3 2011.