Geothermal energy: The world's hottest investment

Geothermal if often overshadowed by other forms of alternative energy, but investors should sit and observe the investment prospects.

Fact is, actually twice as much performance produces geothermal energy in 2010 as solar and wind combined.

And improve the growth prospects.

Current development of the global geothermal energy pipelines now exceeds 9 gigawatts (GW). To put that in perspective, that is current amount of installed geothermal capacity only 11 GW world - and that's after 30 years of development.

It is not surprising when you consider that the benefits.

Rock below the Earth's surface, creating enough steam to the turbines produced by water by molten-hot power geothermal energy. Geothermal energy is therefore not only clean and safe, but constant. This makes it more reliable than solar and wind.

World leader in geothermal energy, with 3.2 GW of installed capacity remains the United States.

But price of geothermal energy for its cleanliness, sustainability and wealth have a growing number of countries around the world.

In Africa, for example, Kenya, its estimated 10,000 megawatts (MW) of geothermal potential attempts optimally.

As it stands now, Kenya manufactures only 1,200 MW of the total energy, only 20% of its population are used. Worse still, it estimates demand for electricity rises to 21.620 MW by 2030. This means that Kenya is dependent on a variety of energy sources.

This is why the country plans, geothermal energy, the half of the country to produce energy by 2018. At present, Olkaria - producing Africa's first geothermal energy field - 210 MW of electricity. However, Kenya aims to ensure the output to 5,530 boost MW by 2030.

Other plants will come online are expected to up to this point. In fact, is the African Development Bank put $145 million in the Menengai project. Covers the development of the first 200 MW of power and the geothermal energy development co. China development works to secure additional financing from the Bank and the Bank of Japan for international cooperation.

When all is said and done, the Menengai field could produce, up to 1,650 MW of power.

Turkey is an another hot spot for geothermal, with 7,000 MW of potential energy. The Turkish geothermal Association estimates there are online by 2015 to 100 MW currently 500 MW installed capacity. Turkey is generally regarded as one of the hottest geothermal markets in Europe.

It is not not only developing countries.

A new report by technical advisors Sinclair Knight Merz says geothermal resources in the United Kingdom could provide 9.5 GW makes. Less than a fifth of the British aggregate demand could meet.

Dr. Ryan law, Chairman who made deep geothermal energy group, REA the case that UK should miss the opportunity to participate on what he thinks is in a $47 billion-growing industry by 2020. Especially as it lags behind other European countries in the development. The geothermal industry in Germany to example now 6,000 people employed and has $5 billion attracted investment, says REA.

Two investment-grade geothermal stocks

Now, if you are looking to get on this fast-growing industry, there is a look a few companies value.

The first is Calpine Corp (NYSE: CPN). Calpine is North America's leading manufacturer of geothermal energy, produce up to 735 MW power with 15 plants - 40% all geothermal energy makes in the United States is produced.

Calpine also owns, operates and leases natural gas-fired plants. It is therefore of low natural gas prices, benefits that lowered its acquisition costs and caused an industry-wide shift from coal to the cheaper, cleaner fuel.

Another interesting company is LSB industries (NYSE: LXU), produces the geothermal heat pumps, as well as nitrogen-based chemicals. According to estimates of analysts in the first quarter of AK topped, the company suffered a setback in the form of an explosion in one of its chemical plants in El Dorado.

However, the sell-off, which followed was a bit exaggerated, given there were no serious injuries and the facility was insured. The company says no more than $3 million or $0.13 per share amounts insured losses.

Analysts forecast profit of $3.02 per share before the explosion in 2012. If you subtract $0.13, get the result of $2.89 per share and a forward p/e ratio of 9,6. better yet, the company has no net debt.

Once again the "Outperform" rating on the stock exchange, Northland securities even though it his price target from $41 to $38 of less. Still represents.