But the reality couldn’t match the hype, as the raw materials and cost required outweighed the output, and people realized that it would take greater viability to truly change people’s habits, psychology and the status quo in the energy sector.

But in today’s guest editorial from The Street Authority, editor Andy Obermueller explains how a different form of ethanol biofuel could revolutionize the landscape in just a few years – and hand early investors some outstanding potential profits. Check it out below…

Martin Denholm, Managing Editor, Smart Profits Report

The Ethanol Equation

In 1976, a businessman in North Central Kansas commissioned a CPA firm to do a feasibility study into the financial viability of a commercial-scale ethanol plant.

This businessman and his partner owned farmland and grew a little corn. And the ethanol concept that gained momentum in the 1970s post-oil embargo period piqued their interest.

But when the study was completed, the answer was abundantly clear: The technology wasn’t there and the project wasn’t financially viable. So the businessman – my father – focused on other ventures. It turned out to be a wise move, as most people who invested in ethanol in those years lost money.

Flash-forward to today, where ethanol has become a significant element of our national energy strategy. But it’s never existed without significant federal support in the form of subsidies and import tariffs.

So is this energy resource any more viable today? Let’s take a look at a different form of ethanol production – and a government mandate that aims to propel its progress…

The 16-Billion Gallon Biofuel Revolution

There’s one piece of federal legislation George W. Bush signed into law that President Obama likes: The Energy Independence and Security Act of 2007, which went into effect on January 1, 2009.

It requires the U.S. to use a total of 36 billion gallons of biofuel by 2022.

The rub is that only 15 billion gallons can come from corn-based ethanol. Right now, the U.S. produces 10 billion gallons of corn-based ethanol per year, bolstered by billions of dollars in federal money. That’s on track with federal production targets, which peak at 15 billion gallons in 2015.

Instead, the lion’s share of that 36 billion gallon total – 21 billion gallons (or 58.3%) – must come from “advanced biofuels” that are 50% cleaner than gasoline. And of that total, an aggressive federal timetable for 16 billion gallons to come from something called “cellulosic” biofuel by 2022.

The U.S. isn’t producing any of it right now. In fact, only a few companies even know how. And as these federal mandates take effect, the handful of companies that control this technology could see demand grow by 15,900% – and their revenues follow.

The Sugar Solution Making Ethanol A Viable Energy Solution

So what is cellulose anyway?

It’s a compound found in all plants – from hardwood trees to the grass in your yard. It’s the most common organic compound on Earth. Chemically, it’s a sugar (hence the “-ose” at the end of the word ) – and that means it can be easily fermented into ethanol.

And while corn-based ethanol does have modest growth prospects over the next few years, cellulosic ethanol’s trajectory – again, written into federal law -blows corn out of the water. That’s because the U.S. doesn’t produce much cellulosic ethanol at the moment, mostly because the technology is still being refined.

But the technology is very, very close to coming online. Several demonstration-scale plants are operational. And after scientists nail down the process, the U.S. could see the biofuel industry go from producing almost zero gallons of cellulosic ethanol to 16 billion gallons. That’s a 15,900% increase in only a dozen years – enough to turn a $10,000 investment into $1.6 million.

And investors who get in on these cellulosic ethanol fuel companies at the ground level could be set for a huge profit windfall.

Source: The Biofuel Revolution: Why Now Is The Time To Invest In Ethanol Stocks

This from Smart Profits Report:

The winds of change are coming…

Not only does that include Barack Obama taking office in a little under two months time, it could also include a natural energy resource receiving an increasing amount of attention.

Last year was a breakthrough year for the U.S. wind industry, with total wind-power capacity rising by 45%. That accounted for 30% of all new power production.

And if you think wind made impressive advances when an oilman was in the White House, just wait until President Barack Obama takes office.

During the presidential election, Obama made renewable and alternative energy a key campaign issue, sounding off controversially against the continued use of coal-fired power plants.

“If somebody wants to build a coal-powered plant, they can,” he said during the campaign. “It’s just that it will bankrupt them.”

Global… And Growing At An Accelerated Pace

Recent legislation mandates that at least 15% of U.S. electricity come from green sources by 2020. But under the Obama administration, if all goes according to plan, expect to see calls for 10% of our electricity to come from green sources by 2012 and 25% by 2025.

The U.S isn’t alone in its call to clean up the environment this way. China’s new energy plans, released in September 2007, included a push to generate 10% of its power from wind by 2010 and 15% by 2015.

And the EU has mandated that 20% of its energy comes from renewable resources like wind by 2020. In some places, such as Denmark, that goal is already a reality. And across Europe, efforts are already well under way to ensure that wind turbines account for roughly one-third of all new generating capacity installed in the next few years. That means providing electricity for 90 million people by 2010.

The wind power movement isn’t limited to large countries like China or to rich countries like the United States. It’s global.

North Africa, the Middle East and certain South American countries have all gotten into the act. The first two regions increased wind energy installations by 42% last year.

And a recent study showed that Egypt, with its strong wind activity in the Suez Gulf, could host 20,000 megawatts of wind farms.

And then there’s Brazil, which has 14 projects totaling 107 megawatts scheduled for completion by the end of the year, and another 900+ megawatts slated for 2009.

This Investment Has Both Power And Potential

And it’s not just governments that are embracing wind power. Even oil billionaire T. Boone Pickens is getting behind this alternative energy trend. He’s wagering $12 billion on an area spanning the Texas panhandle that, when finished, will be the world’s largest wind farm. He’s already ordered 667 turbines from General Electric.

Why has this legendary oil investor hitched his future to wind? Because he knows that this alternative energy source is our best shot at reducing our dependence on foreign oil. In one year, a single 3-megawatt wind turbine produces as much energy as 12,000 barrels of oil – without consuming any natural resources or emitting any pollution or greenhouse gases.

The good news, as Pickens points out, is that the United States is the Saudi Arabia of wind power.

The Great Plains is home to the greatest wind energy potential in the world, and Pickens envisions a string of wind facilities stretching from Texas to North Dakota capable of producing 20% of the nation’s electricity.

But right now, even despite these huge advances, wind power still accounts for a tiny fraction of the world’s energy needs: About 1% in the United States and 1.3% globally.

That’s all set to change, though…

Where Wind Energy Is Going Next

According to the Department of Energy, wind energy could generate 20% of U.S. electricity by 2030. Compared to today, that’s a 40-bagger industry-wide. This means that a few of the best and the brightest wind stocks could easily rise 100-to-1 before it’s all over.

You can do the math. Unless someone discovers the fountain of youth, I doubt you’ll find any industry in the world with as much growth potential.

Check out these other wind facts…

• Wind energy grew 667% between 2000 and 2008, from 2,554 megawatts of installed U.S. capacity to 19,600. In that time, in fact, the United States became the world leader in wind power generation, outpacing Germany.

• A 2005 NASA study pegged the power of the global wind supply at 72 terawatts, or roughly five times global power consumption. That means there is virtually no limit to the degree from which the world can harness this 100% clean, 100% free and 100% renewable resource. It’s only a matter of time, and the clock is ticking.

• The demand for wind power isn’t only strong and globally pervasive, in most nations, it’s been written into law.

• Nearly three-dozen U.S. states that have mandated that utilities buy an increasing amount of their electricity from renewable resources. They literally have to buy wind turbines. And that legal obligation is worthwhile, too. As part of the recent $700 billion TARP bailout, Congress extended a $0.02 per kilowatt-hour production tax credit. That means the cash goes straight to their bottom line instead of to Uncle Sam. Both these factors will continue to provide a strong incentive for wind power.

The changing of the White House guard takes place in less than two months’ time, with Obama practically vowing to turn the White House “green.” Coal power is out. Wind power is in. And the wind industry will likely be the focal point of government mandated energy initiatives for the next few decades.

We’ve pinpointed a select group of FOUR investments that will benefit the most when an unprecedented infusion of government cash is pumped into this industry.

These companies are immune to nearly all outside economic forces and have their sales orders on file in amounts that could set them – and you – up for years to come. Click here to find out how to profit from wind power.

Source: With A Changing Of The Political Guard, Now Is The Time To Harness The Profit Potential Of Wind Power