Coal Deaths, Coal's Death, and Clean Profits

There are more reasons than ever to be bullish on clean energy.

For starters, $90 billion was invested in the sector last year.

But a new Bloomberg report projects that will rise to $150 billion per year by 2020, implying nearly a trillion dollars will be invested in the sector in less than a decade.

That same report said that "renewable energy will constitute 22 percent of the world's installed power generation capacity by 2020, up from 13 percent today, and will then grow to account for 31 per cent of the energy mix by 2030."

So in the next 20 years, the world's use of clean energy will grow 138%.

Coal Deaths and Coal's Death

In the past month, the uglier side of the fossil fuel business has come to the fore — in a big way.

It started at the Upper Big Branch coal mine in West Virginia, where 29 miners were killed in April during the worst mining accident in U.S. history.

Given the busy news cycle of the past few weeks — banking reform, volcanoes, immigration, supreme court nominees and, oh yeah, a massive oil leak — you likely missed the 30 deaths at Russia's Raspadskaya mine.

And the 25 deaths at China's Wangjialing mine.

All told, 79 coal miners have lost their lives in a month.

Coal was already in the political doghouse because of indirect damage associated with mercury, sulfur, and carbon emissions. Being the direct cause of death for nearly 80 people certainly won't help its case.

Since 2000, construction of 123 proposed coal plants has been canceled, with another 51 facing court battles. Currently, only 25 still have a chance of being built.

Hawaii has already banned new coal plants. So has Las Angeles. Ontario and British Columbia will phase them out in the next few years. And the governors of California, Florida, Michigan, Washington, and Wisconsin all oppose new coal plants.

And don't forget that pesky Supreme Court decision that says the Environmental Protection Agency is both "authorized and obligated" to regulate carbon dioxide emissions.

The world "obligated" means it isn't an option. How they'll do it is still being worked out, but it's coming.

But what does all this opposition mean for the coal industry financially?

Citigroup (NYSE: C) has downgraded the entire coal sector and recommended that is clients invest in other energy sectors.

Merrill Lynch has done the same.

Morgan Stanley (NYSE: MS), JPMorgan Chase (NYSE: JPM), and Bank of America (NYSE: BAC) have all announced that they'll fund new coal plants only if they prove future economic viability based on coming federal restrictions.

Of course, increased bearishness for coal means increased bullishness for clean energy.

Oil Leaks and Cleantech Peaks

As you read this, oil continues to leak from the exploded Deepwater Horizon rig at a rate of 210,000 gallons per day.

Oily birds and fish aside, this event is having major financial implications in the energy world.

Let's chew on the figures being tossed around...

Costs for stopping the leak and cleaning up the spill have been estimated at $7 billion. The cost to Louisiana's fishing industry alone will be $2.5 billion. Florida tourism will take a $3 billion hit.

The loss of the Deepwater Horizon rig represents a $1 billion loss to its owner, Transocean (NYSE: RIG).

BP (NYSE: BP) will also be forced to pay billions in compensation to the families of the 11 deceased rig workers. (They paid $2 billion when 15 workers died in a Texas refinery explosion in 2005.)

And, since the explosion, BP's stock is down 15%, which equates to a $30 billion loss in market value.

Now let's digest them...

By the time this event leaves the headlines, we could be looking at a $45.5 billion tab.

In our bottom-line-based world, that kind of loss will do more to change energy attitudes and opinions than any oil-soaked beach ever could.

The Interior Department has already halted new offshore drilling permits and delayed public meetings on expanding offshore drilling.

Republican Governor Charlie Christ may call a special legislative session to ban offshore drilling in Florida's waters entirely. And BP's executive VP Robert Dudley may have said it best when he uttered, "The political will for expanding offshore drilling may have been lost."

We'll get to see that debate unfold live, as the Senate version of the Energy Bill is due to be released tomorrow.

In the meantime, keep that $45.5 billion projected oil spill clean-up cost in mind. I suspect we'll soon be hearing debate — political, business, and popular — about how that money could've been better spent to solve real energy problems.

A look at the chart below shows the market is already having this debate.

In this snapshot example, you can see how BP, Transocean, and other shallow-water drillers Hercules Offshore (NASDAQ: HERO) and Seahawk Drilling (NASDAQ: HAWK) are trading sharply lower compared to solar company Renesola (NYSE: SOL) and clean infrastructure specialist PowerSecure International (NASDAQ: POWR) since the spill:

The Iron's Hot

These major energy disasters have helped put the spotlight back on clean energy.

But cleantech companies themselves are also doing much to help their cause.

Companies with large stakes in the cleantech business have done markedly well this earnings' season. And with the psychology of investors already muddled by the events mentioned above, many have been more than willing to pump cash into clean companies with good earnings.

The following companies have all reported earnings that impressed the Street this quarter. Some have even posted record revenues and profits:

• Cree (NASDAQ: CREE)

• Badger Meter (NYSE: BMI)

• Digi International (NASDAQ: DGII)

• China Sunergy (NASDAQ: CSUN)

• Power-One (NASDAQ: PWER)

• Rubicon Technology (NASDAQ: RBCN)

• Itron Inc. (NASDAQ: ITRI)

• First Solar (NASDAQ: FSLR)

• Tetra Tech (NASDAQ: TTEK)

• Calgon Carbon (NYSE: CCC)

The earnings of these companies coupled with recent coal and oil disasters means the iron is truly hot for cleantech investing.