President Bush’s wednesday decision to embrace a greenhouse gas emission cap, will benefit alternative energy companies and natural gas producers.
In a Rose Garden speech this afternoon – according to Businessweek, Bush is expected to propose stopping the growth of the nation’s greenhouse gas emissions by 2025 and call for electricity generators to slow those emissions within 10 to 15 years.
This move by the White House could lead to a positive market response for names levered to clean power generation (wind, solar, geothermal, etc.), hybrid vehicles components, and U.S. natural gas extraction.
Shares of solar energy companies like First Solar Inc., Evergreen Solar Inc etc surged in late morning trading. Natural gas producers Anadarko Petroleum Corp. and Chesapeake Energy Corp. could be potentially benefiting from Bush’s new position. Shares of both natural gas companies are currently trading higher.
The head of geothermal energy provider Ormat Technologies Inc. welcomed Bush’s remarks but said more was needed.