What Do They Have in Common?

Branson sees the future

We all know him as the founder of Virgin records that later became Virgin Group, a world giant industrial corporation which has no less than 400 companies under its umbrella.

Sir Richard Branson became wealthy and respected because he could see the future in a brighter way than most of us. According to Branson's recent interview to Bloomberg, the world's No 1 problem is the growing dependence on fossil oils. Sir Branson thinks that the world will not recover from the ongoing recession, unless green energy will support the economy in the near future.

According to Sir Branson the current demand for oil will bring it to an intolerable price of $200 per barrel. If this will happen the unemployment rates in the US will jump to 15 per cent and the world will sink into a deeper recession.

Ormat Technologies – an Israeli pride

It is another Israeli giant that is traded in New-York (NYSE-ORA) and in Tel-Aviv. The market capacity of the company is $1.24 billion. It has a promising bright future and its business in the clean energy sector is one of Sir Branson's solutions for the world's energy and economic problems.

Geothermal energy

The surface of the Earth is cool but its core is very hot. In some places on Earth the heat is released to the surface in many ways such as volcanic eruptions, hot springs, and boiling rocks under the surface.

Ormat developed a unique technology that converts the heat from within the Earth into an Electrical power. Its energy plants are all over the planet, from North America to remote New-Zealand.

New-Zealand is a wonderful example for a country that reduces its dependence in fossil oils. More than half of the country's electrical supply comes from green energy, and therefore it is less affected by oil prices.

The future

A rapid increase in the oil prices will put higher focus in the green energy industry especially in solar energy, wind turbines and of course geothermal energy. Companies like Ormat may face a golden age if the demands for their products will increase amid the surging oil prices.

Ormat's recent closure was $27.38. During the last 12 months it was traded at the maximum of $44.13. Is it an opportunity or is it a high risk?

This article does not recommend investing in the capital market.