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Raymond James Energy Stat of the Week
by J. Marshall Adkins

Energy Stat: Waste-to-Power Flatlining in the U.S., but Fuels from Landfill Gas Are on an Upswing
October 17, 2016

We've written before - most recently, in October 2015 - about the macro, secular trend of rising renewables penetration in the U.S. electricity market. While the U.S. is behind most other industrialized economies, the growth curve is undeniable, with non-hydro renewables on the cusp of reaching 10% share by the end of 2017. It is no secret that wind and solar are the two main drivers, nearly tripling since 2010, but today we will focus on a lesser-known subset of the renewable power spectrum. Waste-to-power - electricity generated from waste sources - has only about 0.5% share, and isn't growing much, but it represents perhaps the most stable, predictable source of non-hydro renewables. Similar to its better-known peers, waste-to-power also stands to benefit from decarbonization policies in the long run. Meanwhile, alongside power generation, a newer "flavor" of waste-to-energy is emerging: fuel production. In this report - co-authored by the Energy and Industrial research teams - we will address the opportunity in both facets of waste-to-energy, and explain how investors can gain exposure to these somewhat below-the-radar themes.

This is a summary of a much more detailed commentary. Please contact your financial advisor for the full report.

There is no assurance any of the trends mentioned will continue in the future. Past performance is not indicative of future results. Investing involves risk and investors may incur a profit or a loss. Specific sector investing can be subject to different and greater risks than more diversified investments. Investing in commodities is generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only form a small part of a diversified portfolio. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising.

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