Tuesday, 27 December 2011

Big Box Retailer Wal-Mart Stores (WMT) Goes Green: What it Means for Energy Efficiency Stocks (PCG, BBLU)

Recently and with the help of PG&E Corporation (NYSE: PCG), Wal-Mart Stores (NYSE: WMT) installed energy-efficient rooftop cooling units in 14 Wal-Mart stores in California, a trend that bodes well for companies like Blue Earth (OTC: BBLU) that design and implement energy saving systems for the California market. Specifically, Wal-Mart Stores (WMT) installed DualCool units that will improve the efficiency of rooftop cooling units (RTU's) in hot dry climates like that of California (DualCool units use a direct evaporative process to pre-cool outdoor air entering the condenser coil and then an indirect process with no moisture added to pre-cool ventilation air entering a building).

In fact, DualCool units will typically reduce annual cooling energy use and peak electrical demand by as much as 25% to 40% ? meaning huge cost savings for big box retailers and superstore operators like Wal-Mart Stores (WMT) that operates big box superstores in hot dry climates like that of California. Hence, it?s a win-win for everyone and for that reason, the 2011 installations were supported by electric utility PG&E Corporation (PCG) as part of its Emerging Technologies program.

So who else will benefit the most from trends like Wal-Mart Stores (WMT) going green through energy efficiency? One stock to consider would be Blue Earth (OTC: BBLU) ? an energy efficiency services provider that operates in California and other hot and dry western states. Specifically, Blue Earth acquires companies with technologies that are designed for a specific customer or facility in the company?s target market of small commercial business and residential customers who want to improve the efficiency of various building systems such as refrigeration, ventilation, lighting, air conditioning and heating.

To achieve these goals, Blue Earth (BBLU) has acquired Castrovilla, Inc., which has served over 6,000 small businesses plus several utilities in Northern California. Castrovilla, Inc. is now expanding its energy efficiency retrofit model into the Southern California, Oregon, Washington, Nevada, Arizona, Utah and Idaho markets and its expected to generate more than $20 million in revenues along with EBITDA in excess of $3 million in 2012.

In addition, Blue Earth (BBLU) has recently acquired Xnergy, a California based energy services company. Xnergy is a provider of energy solutions which include the design and implementation of energy savings projects, energy conservation, energy infrastructure outsourcing, power generation and energy supply and risk management. Xnergy also provides maintenance and service programs that cover just about every aspect of heating, ventilation and air-conditioning (HVAC), mechanical systems for design-build to repair and retrofit services.

Given the above platform, Blue Earth (BBLU) now has an agreement with Gexpro and eCORE Technology to create eecoStation - a program to help more than 2,000 independently owned retail gas stations and convenience stores in North America to implement energy saving technology. The eecoStation program is expected to generate $60 million in revenue over the next two years with Blue Earth (BBLU) subsidiary Castrovilla coordinating and installing energy efficiency measures.

Hence, energy efficiency stocks like Blue Earth (BBLU) is well positioned to help both electric utilities like PG&E Corporation (PCG) and big box retailers or superstore operators like Wal-Mart Stores (WMT) become more energy efficient.

Source: http://www.smallcapnetwork.com/Big-Box-Retailer-Wal-Mart-Stores-WMT-Goes-Green-What-it-Means-for-Energy-Efficiency-Stocks-PCG-BBLU/s/via/3414/article/view/p/mid/1/id/414/

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