Fuel cell race heats up for for hybrid vehicles, United Technologies powers ahead

Dow Jones Industrials component and multinational conglomerate United Technologies (UTX NYSE) offers investors diversification, as well as a solid track record of growth. But for those seeking a solid green investment pick when it comes to fuel cell technology, pay close attention to what one of their units, UTC Power, has accomplished in the race to make the hybrid vehicle market a commercially accepted reality today, not in years to come.

The company has already made great strides by supplying major auto makers with fuel cell technology for their hybrid prototypes. While these models are not being mass produced just yet the company has an appealing mix of clients including BMW, a luxury automaker, Nissan and Hyundai who are two top selling behemoths and in the larger vehicle market, they currently supply fuel cell powered buses in the state of California.

Now while the hydrogen fuel cell idea has some infrastructure issues such as the scarce availability of hydrogen filling stations, the technology has advantages over other alternative energy solutions. For one, which is probably most important, is that fuel cell technology is probably the nearest term solution to providing energy production in automobiles with virtually no carbon dioxide emissions.

Also, people who are on the "ethanol" bandwagon need to be sensitive to the fact that high volume ethanol production puts upward pressure on food prices because of the amount of crops that will have to be supplied to produce the fuel. I don't believe that is worth the cost whereas fuel cell technology does not have this problem.

Beyond the exciting rapid pace of development in this arena, United Technologies recently reported third quarter earnings of $1.2 billion dollars, up 20 percent over the prior period and well ahead of Wall St. expectations. Revenues for the quarter were just over $13 billion.

Performance like this is why they are in the illustrious Dow 30 stocks. Add to that an ambitious recipe to help solve the world's power demands absent of oil and the other dirty alternatives, this company earned the right to be one of my top holdings as a real time play on green automobile technology.

The stock pulled back with the recent market sell-off two days ago, but that what makes it attractive to me at these levels. It closed yesterday at $77.43 per share.

Visit United Technologies' website for a look at the company's environmental objectives and currently deployed power project profiles.

For a list of fuel cell vehicles in production visit this link or for those who would like to see an organized list of other alternative energy investment stocks broken down by category click here.