Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
2009, the Department of Energy (DOE) awarded $17.4 million in funding to a
gaggle of companies pursuing practical uses for carbon dioxide.The recipients were asked to kick in a total
of $7.7 million.A year later in 2010,
the DOE picked six projects to a second round of support totaling $82.6
giant Alcoa, Inc.
one of the winning groups, including partners U.S. Nels, CO2 Solutions (CST:V
and Strategic Solutions.The DOE gave the
Alcoa team $13.5 million to complete a pilot project for flue gas capture and
conversion to a useful product.
project is dependent upon a new in-duct scrubber technology to capture and
treat flue gas.The technology is being
tested at an aluminum manufacturing process.A by-product of aluminum production is alkaline clay or bauxite
residue.The project will combine the
flue gas with enzymes and this alkaline clay and turn out a mineral-rich soil
mix that can be used for environmental remediation.
pilot is also dependent upon the effectiveness of special enzymes produced by CO2
Solutions and its partner Codexis (CDSX:Nasdaq) -carbonic anhydrase enzymes to be exact.The enzymes are supposed to decrease the cost
of the CO2 capture step.Carbon dioxide
and water converts to bicarbonate anyway, but the enzymes dramatically speed up
its most recent annual report, Alcoa reported progress on a pilot project
involving technologies that would eliminate CO2 emissions, but was did not
report specifically on the DOE funded project.Aluminum production is among the most toxic of industrial processes.Any reduction in emissions from Alcoa’s
plants will be significant in the battle to reduce greenhouse gases.The aluminum industry claims a reduction in perfluorocarbon
(PFC) emissions by 77% over the last fourteen years.Yet there is more to do.Alcoa represents ‘big muscle’ in the industry
and its leadership in technology development would probably send the entire
industry in the same direction.
a stake in Alcoa is simply a play on aluminum production, the shares of Codexis
and CO2 Solutions are more clearly defined by carbon capture.Alcoa towers over the two microcap companies
in revenue.Its stock trades at 9.8
times the consensus estimate and offers a dividend yield of 1.4%.Neither Codexis nor CO2 Solutions have been
able to generate a profit, so CDSX and COSLF trade like options on their
Neither the author
of the Small
Cap Strategist web log, Crystal Equity
Research nor its affiliates have a beneficial interest in the companies