Thought I'd post these two articles as they both impact ESI,...

Thought I'd post these two articles as they both impact ESI, albeit directly.

The first is about TruEnergy trying to wangle some more compensation to fund their gas-fired power station.

http://news.theage.com.au/breaking-news-national/cash-sought-for-clean-gas-power-plants-20091109-i3ta.html

If this gets up, I wonder what the implications are for the viability of other power stations? Would is spell the end for some other power plants (Hazelwood)? Would it create an even greater incentive for the other power plants to lower their emissions through ESI-like technology? Does it potentially mean less compensation pie for LYP? It is hard to predict what impact the closure of Yallourn would have on the overall price of permits and the price of electricity received by those that survive.

The second article raises the issue of water, a problem ESI might be able to help deal with in part
http://www.theage.com.au/environment/coal-giants-backed-on-water-bid-20091108-i3j2.html

Overall, these types of articles demonstrate to me how the fortunes of every plant in the valley is intimately linked, and what happens to one will have huge implications for the others, as well as the technologies which are eventually adopted. It got me thinking about a strategy of having a exposure to all the most likely outcomes. This are:
1. Increased gas-fired generation with closures of Hazelwood and Yallourn - in this case we can only invest in the large energy players.
2. Geothermal - there is GER. But sounds like the geothermal resource is not stellar in Valley. I heard there are hot springs, but nothing like what is available in the Cooper Basin (see GDY)
3. UCG - there is CXY. They are at scoping stage with Ignite energy. However, it the tech is proven in Queensland, this tech might be a late bolter. They need an appropriate coal seam, more black than brown.
4. Solar - not baseload - large scale not suitable to Latrobe.
5. Wind - not latrobe - not baseload.
6. CCS - sounds like BS to me.

I am invested in ESI and CXY. So that covers two potential bases. Exposure to the rapid uptake of gas-fired power stations is only available through blue-chips. I prefer small, high risk companies...they are more fun. Wind and solar I am not interested in (at least in this context). Geothermal sounds like a big long-shot in the valley. Owned some GER, but sold them again as didn't look like it was going anywhere. Overall, ESI seems pretty well placed in the scheme of things. Let hope some of the compo goes LYP's way, as the rapid gas-fired route might see the 'clean coal' route bypassed. However, this seems very unlikely given the export market potential and the fact that LYC has relatively new generators.

So my question is: is anyone else holding ESI as part of an attempt to cover all bases in the Valley in the transition to a low carbon economy? Have I missed any obvious companies/technologies? I asked this question also to discuss what ESI's competitors are.