Three of Australia's biggest companies by market capitalisation: Energy Development, Renewable Energy Corporation and Pacific Hydro have all seen their share prices fall from record highs earlier this year.
Energy Development was riding high earlier thanks to technology called SWERF (Solid Waste Energy Recycling Facility), which turns waste into gas and electricity. In February, the company was trading at $14.35 but is now trading at $7.27. While contract opportunities are "just around the corner", analysts said delays and modifications to SWERF have tested investor patience.
Renewable Energy has the rights to technology that can convert biomass such as animal, forestry and farming waste into clean heat for industrial use. In May, its share price hit a high of $2.46 but is now trading at 92 cents. Direct sales of its gasification units have not lived up to expectation and the ASX has begun querying the company over its sudden drop in share price.
Despite the turmoil in the Middle East and the continuing battle for the control of Caspian Sea reserves, a report from Deutsche Bank says alternative power generation will not become a threat to mainstream technologies this decade.
"In our view, alternative power technologies will not challenge the dominance of traditional generation (eg gas, coal, nuclear, oil) before 2010 at the earliest," a Deutsche Bank report said.
