Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Duke Energy Corp (DUK), Dominion Resources, Inc. (D), SunPower Corporation (SPWR): The U.S. Army is Going Green to Save Money and Lives

Page 1 of 2

Photo credit: Flickr/U.S. Army.

The U.S. Army is going green. No, it’s not getting new uniforms again. Instead, it has now awarded the third of four contracts focused on renewable energy technology. The $7 billion spending plan is for the purchase of energy over a period of 30 years from renewable energy plants. These plants would be constructed and operated by private sector companies.

In April of 2012 the U.S. Government made one of the largest commitments to clean energy in history. It announced a bold goal to deploy three gigawatts of total renewable energy on U.S. military installations by 2025. To put that size into perspective, that’s enough energy to power about three million homes.

The U.S. Army is under Congressional mandate to meet a goal to have 25% of its energy production and consumption come from renewable sources by 2025. It’s part of the overall plan to improve energy security and sustainability. In order to meet that goal, the Army has devised a plan to use mix of solar, wind, geothermal and biomass as part of its $7 billion spend to go green.

So far the contracts for geothermal, wind and solar have been awarded. Several public companies including major utilities Duke Energy Corp (NYSE:DUK) and Dominion Resources, Inc. (NYSE:D) as well as solar panel maker SunPower Corporation (NASDAQ:SPWR) were among those recently awarded contracts. While these contracts are likely to be small and lower-margin and not likely to be needle moving for big utilities like Duke Energy Corp (NYSE:DUK) and Dominion Resources, Inc. (NYSE:D), it does open up the door for future contracts. The Department of Defense is the biggest single energy consumer in the world at $20 billion each year. Meaning, there are plenty of opportunities to fuel the U.S. military machine in the future.

While the Army is currently splitting its funds up into the three technologies, solar could be the big long-term winner. In addition to utility scale projects on military installations, solar is already proving to be useful in the battle field. For example, the Army has used solar at remote bases in Afghanistan, which significantly cut down on the amount of liquid fuel it uses for generators. That is why interested investors should keep a close eye on SunPower Corporation (NASDAQ:SPWR) and other solar manufacturers as these companies could really benefit from long-term demand from the military.

While many will surely criticize the military’s plans to spend so much money on green technologies, let’s face it, this really is a drop in the bucket compared to its annual spend of $20 billion. We are talking about trying to offset some of the nearly 5 billion gallons of oil that it consumed last year. To put that into perspective, that’s nearly 120 million barrels of oil and for a country that imports about 7.4 million barrels per day, and it represents 16 days’ worth of oil imports which is a pretty significant amount of oil. Cutting costs by switching using more renewable energy is really a smart move.

The other important factor in all of this is saving lives. For example, in 2010 alone there there 1,100 attacks on fuel resupply convoys. Sadly, attacks like these cost lives. In fact, during 2003 to 2007 we lost 3,000 soldiers and contractors on refueling missions alone in Iraq. It’s really quite simple, by using less fuel on the battlefield we can save more American lives.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!