"The U.S. Energy Department is sponsoring a race to develop an obscure industrial process -- carbon capture and sequestration (CCS) -- and the winners of the race will receive $1.4 billion," says Andy Obermueller.

In Government-Driven Investing, he says, "Only 12 companies were selected to compete in this scientific 'Olympiad'. And my pick to profit from among theses is Praxair (NYSE: PX)."

"This industrial-gas company owns hundreds of CCS patents, technology that could turn a coal-fired power plant -- about the dirtiest thing in the world, emissions-wise -- into one of the cleanest.

"That's right: Praxair's solution, deployed on a global scale, could render the 'cap-and-trade' bill, which seeks to limit CO2 emission, moot.

"Power plants retrofitted with this technology would emit only water vapor and CO2, two compounds that can be easily "sequestered" and stored rather than emitted.

"Praxair's remedy, which could be used at every coal-fired power plant in the world, could significantly reduce global carbon-dioxide emissions.

"Here's the kicker: Praxair was one of only 12 companies that made the cut to participate in the government's $1.4 billion CCS race.

"I want to be clear that I spell out the (profit) potential here. In 2007, for example, the United States produced 6.1 billion metric tons of carbon dioxide, according to the Environmental Protection Agency.

"Now, that number has since risen, but the sources haven't changed much. To wit: 2.4 billion tons came from electricity generation, primarily from coal-fired power plants.

"Another 1.9 billion tons came from transportation. So the only ways to seriously address carbon emissions on a global scale are to address cars and power plants.

"It is possible to reduce 2007 emissions by an astonishing 40% simply by using Praxair's CCS technology.

"And in China, where a far greater percentage of its carbon comes from power plants instead of from vehicle emissions (because it has vastly fewer automobiles), using this critical CCS technology would have an even more pronounced effect on emissions.

"In my view, you don't have to tax carbon to curtail its use, nor does serious climate control require convoluted treaties. The solution is this: Incentivize better alternatives.

"The stock is significantly undervalued. This is for a very simple reason: The market looks at Praxair as an industrial-gas giant, which it clearly is, but not as a leader in clean coal technology. This will change. 

"One of the catalysts will be Praxair's participation in the government's CCS competition. Even if the company is not among the winners, it is likely to shine a spotlight on its efforts in this area, which the market will take notice of.

"I think Praxair remains an outstanding buy and is a worthwhile addition to long-term, growth-oriented portfolios."