Sydney Morning Herald On Green Investments

Thanks to reader Kevin Bennewith in Oz for forwarding this Sydney Morning Herald story about rising fossil fuel prices driving up the stock prices of various and sundry renewable energy companies. Excerpt:

The recent bidding war over the renewable energy group Southern Hydro and the premium AGL was prepared to pay to knock out the competition were clear signs of the appeal of well-run, income-producing alternative energy stocks.

AGL paid $1.43 billion for the group, which owns 11 hydro power stations in NSW and Victoria as well as Australia's largest wind farm in South Australia, outbidding Babcock & Brown and Origin Energy.

At the smaller end of the market, Australian Ethanol, which produces ethanol from grains and sugar, leapt 14c cents to 47c last month on news that car manufacturers had accepted the use of ethanol-blended fuel.