The global credit crunch and associated stock market weakness has taken its toll on cleantech stocks. However, cleantech indices are still showing healthy increases on the year as 2007 draws to a close. Globally, the cleantech sector is performing strongly, with the S&P Global Clean Energy Index notching up gains of over 70% year-to-date. The Wilderhill New Energy Global Innovation Index was also up more than 50% in mid December. The US indices are mostly just under 20% higher.

First published in Cleantech magazine, November/December 2007. Copyright Cleantech Investor 2007

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Sigma Capital Cleantech Index

The Sigma Capital Cleantech Index tracks AIM listed companies in the following sectors: renewable energy; energy efficiency; emissions reduction; conservation of natural resources. The top ten components in the index (in order of weighting as at 7 December 2007) were: Clipper Windpower, Tanfield Group, Climate Exchange, ReneSola, Trading Emissions, Infinity Bio-Energy, EcoSecurities, Ceres Power Holdings, ITM Power and Zenergy Power.

Over the year to 7 December 2007, the Sigma Capital Cleantech Index was up by 6.8%. Whilst ahead of the FTSE AIM 100 Index, the performance of the AIM listed cleantech stocks has clearly lagged their large cap US or international peers. Over the year to 7 December, the best performers from amongst the Sigma Capital components have been Clean Diesel Technologies (up 174%); Tanfield Group (up 154%); Traction Technology (up 150%); Solar Integrated Technologies (up 140%); Climate Exchange (up 132%); Zenergy Power (up 125%); Energetix (up 123%) and PowerFilm Solar (up 88%).

The list of losers amongst the Sigma Capital Cleantech Index components highlights the volatility of the AIM market and the risks of investing in AIM listed companies. Companies losing more than 70% in value in the year to 7 December included: KP Renewables (down 99.6%); Tersus Energy (down 91.8%); Biofutures International (down 87.3%); Oxonica (down 81%); Renova Energy (down 80%); Freeplay Energy (down 78%); CMR Fuel Cells (down 74%); China Biodiesel International (down 71%) and Prometheus Energy (down 71%).

FTSE/Impax joint venture

FTSE has entered into the cleantech space through an agreement with Impax Asset Management. From December 2007, FTSE will take over the management and development of the Impax ET50 Index, which was launched by Impax in 1999. It will be rebranded as the FTSE ET50 Index and comprises the largest ‘pure play’ environmental technology companies by market capitalisation, globally.