Stock Watch: Katrina’s Effect on Alternative Energy

One of the less depressing effects of Katrina has been the nation’s increased focus on alternative energy, including energy storage and supply systems. Such systems provide emergency power for grids during times of crisis through alternative means – attracting attention for both sustainability and reliability.

One company that has benefited from this exposure is Beacon Power, a Massachusetts-based developer of systems that store energy through such alternative means as flywheels or solar energy. Flywheels are impressive devices that could eventually replace the toxic battery farms currently used to backup energy grids. Beacon describes flywheels as follows:

A flywheel energy storage system draws electrical energy from a primary source, such as the utility grid, and stores it in a high-density rotating flywheel. The flywheel system is actually a kinetic, or mechanical battery, spinning at very high speeds (>20,000 rpm) to store energy that is instantly available when needed. Upon power loss, the motor driving the flywheel acts as a generator. As the flywheel continues to rotate, this generator supplies power to the customer load.

Beacon’s stock, having lingered around $1 since the year began, rose dramatically as news of grid damage from Katrina circulated. The stock, which peaked at $5.35 on August 24, has since settled around $3.50 – an increase of over 300% from its price on July 15.

Katrina is an appalling catalyst for any new interest in companies like Beacon. However, perhaps one way to respect the victims of this tragedy is to invest in those technologies that may one day make us healthier and safer.