5/10/2010

Carbon Sciences(CABN)

We have all heard a lot about global warming long ago, but it was until recently that we actually felt it coming. All the severe storms, snows occurred not long ago, and the lines between 4 seasons sure are getting blurred. I am not sure if earthquakes are one of the global warming effects, but we sure had a lot of noticeable quakes this year.


People are trying to solve global warming problems by basically 2 principles, alternative energy & carbon emission reduction. In other words, all things go green. Green cars, green computer, green power plant Thus, wind, sun, water, and geothermal powered energy became major investments of many countries. I believe that these actions that we take should help solving the issue, and many of these companies are worth looking into.

However, one company that got my attention was Carbon Sciences (CS). CS claims to have developed a breakthrough technology, which as a result, will turn CO2 into energy. Usually, this type of magical technology will come with a problem, requiring more energy to reproduce the new energy. (Simply put it this way, if it takes 6 units of energy to produce 5 units of new energy, it will be useless.) CS claimed to have solved the problem.

Source: Carbon Sciences

CS also developed a technology to transfer CO2 directly from coal power plants. According to IEA, nearly 27% of worlds energy was supplied by coal power plants. Think how big the market is for CS. Coal power plants will rush to get this technology as soon as it is ready because they have a chance to claim that they are green/clean power plants as well.
Source: IEA

Although Carbon Sciences seems to be a great company to invest, it can also be a high risk company.  Yes, CS claims that they have the Breakthrough Technology to solve it all. But CS has not release any product yet. Are all these too good to be true? Maybe. The CEO said on an interview that CS is expecting to commercialize its product earlier next year. So, we would just have to wait and see.

If everything is clear as a bell, its stock price wouldnt be what it is now. However, if everyone already knows about the company and its potential, it would be hard to invest anyway. For example, everyone knows that Google is a good company by now, but the stock price is so high that make it hard to decide what price is a good buy.

I think that Carbon Sciences holds a bigger dream than most renewable energy companies. While other renewable energy companies are still trying to come out with an alternative solution to reduce carbon emission, Carbon Sciences makes energy right out of CO2.

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