Investors still seem to have quite an appetite for alternative energy… but their tastes might be changing a bit.
This AP story posted on Forbes.com says energy sources such as solar and wind have made some gains, while ethanol investments became somewhat flat:
According to IPOHome.com, 115 companies went public in the U.S. during the first half of the year. Of those, eight were in the alternative energy sector, compared to nine offerings for all of 2006.
“What we’re seeing is a very strong pipeline” of renewable energy IPOs, both in the U.S. and overseas, said Michael Liebreich, chairman and chief executive of research provider New Energy Finance.
That’s particularly true for solar and wind companies, he said. On the other hand, after a banner 2006 that saw three ethanol companies raise just shy of $1 billion in initial public offerings, ethanol IPOs have ground to a halt as concerns about high raw material costs and saturation curbed market demand.
The article goes on to say ethanol investments might have been hurt a bit by the sharp rise in corn prices. Meanwhile, biodiesel IPOs are just getting off the ground but could be helped by big deals such as Seattle-based Imperium Renewables’ recent large investments.