Filed under: Deals, United Technologies (UTX), Oil, Suntech Power Hldgs ADS (STP)

Solar energy presents two challenges. The first is to gather energy from sunlight. The other is to store it for future use. United Technologies (NYSE: UTX) believes that it has found a solution for the second problem.

According to The Wall Street Journal, UTX unit “Hamilton Sundstrand is scheduled to announce that it has teamed with US Renewables Group to commercialize a new type of solar-power plant that will use molten salt to store the sun’s heat.”

Solar power stocks were among the biggest winners on Wall Street in 2007. As an example, shares in SunTech Power (NYSE: STP) moved from a 52-week low of $31.41 to close the year at $82.32. As long as the price of crude stays high, solar power shares are likely to do the same.

The United Technologies announcement is a sign that sun-driven alternative energy is entering the big time. The company had almost $14 billion in revenue last quarter, but some of its businesses like cooling and elevators are likely to face slower growth.

What better idea for UTX than to use some of its huge resources to get into one of the fastest growing industries in the world.

Douglas A. McIntyre is an editor at 247wallst.com.

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This entry was posted on Wednesday, January 2nd, 2008 at 2:24 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.