Offshore Wind Blows Into The US: Seven Stocks To Catch The Breeze

No article on offshore wind stocks would be complete without a mention of Danish energy giant Dong Energy A/S (Copenhagen: DENERG.) Dong is a diversified energy developer and utility with a focus on sustainable energy. The company has long pioneered new offshore wind technology, and is a leading European developer.

Foundations

Much of the investment in offshore wind is under the surface of the water, in the foundations. Constructing these giant, incredibly strong structures under windy seas is also a technical feat requiring specialized equipment. Holland's Sif Group (Amsterdam: SIFG) is the leader in this market, where it gets approximately two-thirds of its revenue. This makes Sif the closest thing to a pure-play offshore wind company available. The balance of its revenue comes from foundations for oil and gas.

Conclusion

Offshore wind is a rapidly growing and exciting form of renewable energy, and the established industry leaders have wide moats protecting them from startup competition. This combination means that current leaders are likely to continue to lead, but it also means that pure offshore wind exposure is difficult, if not impossible to find. The only stock that is more offshore wind than anything else is Sif Group, and that company's exposure to oil and gas may be too much for some investors excited about renewable energy.

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