cleanenergy policies of small nations

1

Cleantech industry policies

of selected small nations

21December, 2010

Prepared by Policy Projects Branch, Policy and Coordination

Division

2

TABLE OF CONTENTS

SUMMARY TABLE OF CLEANTECH POLICIES ............................................... 4

A. DENMARK ........................................................................................................ 14 Renewable energy policy ..................................................................................... 14

Strong cleantech export growth ........................................................................... 15

B. FINLAND ........................................................................................................... 16 Renewable Energy ............................................................................................... 17

Cleantech exports ................................................................................................. 18

The Finnish Cleantech Cluster. ............................................................................ 18

Finnish Cleantech R&D programs ....................................................................... 19

Finlands Renewable Energy Market .................................................................. 20 Bioenergy ............................................................................................................. 20

Solar ..................................................................................................................... 20

Wind ..................................................................................................................... 20

Water and waste water ......................................................................................... 21

Energy efficiency ................................................................................................. 21

Waste-to-energy ................................................................................................... 22

Co-generation ....................................................................................................... 22

Air Pollution......................................................................................................... 23

Clean technologies in logistics and transport ....................................................... 23

C. HOLLAND ......................................................................................................... 24 Key Dutch Cleantech sectors ............................................................................... 24

Research institutes and programs......................................................................... 25

Solar energy: key highlights ................................................................................ 27

Offshore Wind Energy ......................................................................................... 28

Greenhouses ......................................................................................................... 30

City of the Sun ..................................................................................................... 30

Cleantech Holland ................................................................................................ 30

E. IRELAND ........................................................................................................... 32 Renewable energy policy ..................................................................................... 32

IDA Cleantech FDI Strategy ................................................................................ 33

Wind Energy ........................................................................................................ 34

Ocean Energy ....................................................................................................... 35

Solar Energy......................................................................................................... 35

Bioenergy ............................................................................................................. 36

Energy Management ............................................................................................ 36

Enterprise Ireland- Key Activities ....................................................................... 36

F. ISRAEL ............................................................................................................... 38 A leader in water management technologies ....................................................... 38

Israel's key water achievements: .......................................................................... 39

R&D support and ready access to capital ............................................................ 40

Government Programs: Israel NEWTech A national program supporting Israels water technology Sector ......................................................................... 40 Program objectives............................................................................................... 41

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Program Strategy ................................................................................................. 41

Israel's key Renewable Energy Technologies ...................................................... 41

Solar Energy......................................................................................................... 41

Geothermal Energy .............................................................................................. 42

Energy from Waste .............................................................................................. 42

Fossil Fuel Replacement/Bio Fuel ....................................................................... 42

Energy Efficiency ................................................................................................ 42

IT Solutions/Green IT .......................................................................................... 42

Israels Agro-tech Highlights ................................................................................ 43 Irrigation .............................................................................................................. 43

Saline water irrigation .......................................................................................... 43

Greenhouse technologies ..................................................................................... 43

Dairy .................................................................................................................... 43

Seeds .................................................................................................................... 43

Bio/Organic agriculture ....................................................................................... 43

Aquaculture .......................................................................................................... 44

Desert Agriculture ................................................................................................ 44

G. SINGAPORE ...................................................................................................... 45 Singapore Governments commitment to Growing Cleantech ............................ 46 The Solar Energy Research Institute of Singapore (SERIS) ............................... 47

Singapores CleanTech One ................................................................................ 47 Environment and Water ....................................................................................... 48

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SUMMARY TABLE OF CLEANTECH POLICIES

Country GDP

1 Population

(Millions) Cleantech strategy/policy

Sectors of focus Policy instruments

Areas of Strengths Comment

DENMARK 341 5.6 Dutch Trade Council and

Denmark Invest promote

exports and investment in

the sector but there is no

explicit industry

development cleantech

policy.

A strong political

commitment to renewable

energy with a strong

emphasis on wind and bio

energy.

Around 13 per cent of

Denmarks energy

consumption is currently

generated from biomass.

Industry and

government funding

for research,

development and

demonstration

projects covering

biomass, bioenegy,

conversion

technologies and

waste to energy.

Research programs in

hydrogen and fuel

cell technologies.

Diversified support

for different types of

renewables such as

price premiums and

investment via public

tenders for offshore

wind power.

Renewable Energy

Target (RET): 30%

energy from

renewable energy

sources by 2020..

High levels of renewable

electricity generation

installed with a very strong

focus on wind with claims

that Danish manufacturers

occupy 40% of the world

market.

Denmark is a leader in

technological development,

and this has created a

showcase for Danish

cleantech.

Highly internationalised

sector with exports of

growing three times the rate

of total exports over the last

10 years.

Government has a zero

fossil fuel vision but

without a time frame and

strategy on how to

achieve the vision.

Independent climate

commission investigating

how this can be achieved.

1 US Purchasing Power Parity (PPP), millions

5

Country GDP1 Population




FINLAND 179 (2009) 5.4 Cleantech policy is very

advanced in a number of

sectors/areas and the

government is very active

in promoting the sector.

Strong clustering

capability with four main

cities specialising in

different streams of

cleantech. The Finnish

Cleantech Cluster

promotes interaction

between Finnish

enterprises and the

research community.

Cleantech Finland

actively promotes the

sectors capabilities.

Invest in Finland -

Business opportunities

and professional

consulting services for

international companies.

Market dominated by

solid bio mass and large

scale hydro power.

Renewable energy

including bio-energy

waste to energy, water

management and some

solar. Expertise in large

scale environmental

projects.

Wide range of

measures range of

measures and

instruments in place

to develop the

industry. Investment

subsidies and energy

tax exemptions to

encourage investment

in technology

development.

Grants are available

for investments and

research projects and

can cover 40% of the

investment, up to

250,000 Euro per

project. Tax

subsidies in place to

support wind,

biomass and gas.

Sector has strong

R&D and innovation

support with

financing reaching a

record 230 million

Euros. BioRefine

Technology

established to

promote new biomass

products.

Strengths in both energy

production and energy use.

Especially strong in

technology that combine

waste management and

energy production.

A world leader in combined

heat and power generation

(International Energy

Agency).

Energy efficiency, waste and

recycling are key strengths.

Highly internationalised

sector with share of clean

technology exports highest in

OECD. Strong trade ties

with China, Russia and India.

Finnish cleantech business in

China is estimated to be

currently worth around

EUR900 million this figure is

expected to double by 2013.

Cluster development is very

high.

Finland is focusing on

nuclear energy and

aiming to build two

additional nuclear

reactors besides the one

under construction.

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Financing tools

combining public and

private capital.

There are a number of

support organizations

and working for the

companies in the

Finnish cleantech

sector to promote

domestic and

international business,

research and

innovation.

EU commitment to

raise renewable

energy to 38 percent

by 2020.

Announced a major

renewable energy

program worth more

than EUR300 million

per year by 2020 to

meet RET. Package

includes feed in tariff

for wind, biogas, and

small scale heat and

power production.

Voluntary energy

efficiency agreements

help support the

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sector and subsidies

and tariff schemes for

households to install

energy saving

applications.

National Waste Plan

for Finland has set

ambitious targets for

recycling.

HOLLAND 695 16.6 Development of

Renewable energy

technologies is a top

priority.

Cleantech Holland is the

governments export

development agency

responsible for promoting

cleantech.

Strong focus on offshore

wind energy and biomass.

Tax incentives to

induce investments in

infrastructure,

however not linked to

renewables.

Strong focus on R&D

and business and

knowledge institutes

in solar and offshore

energy. Energy

research central to

Innovation agenda

and comprehensive

range of government

subsidised research

programs on new

energy technologies

from fundamental

research to pilot

programs and

practical

demonstrations.

Specialist expertise in

offshore energy and large

renewable energy projects

including large demonstration

projects.

15% world market share in

wind farms. Strong capability

across the supply chain from

blade design, installation

technology, on site

maintenance and foundation

design and building. Strong

presence of test facilities and

companies.

Offshore wind energy,

photovoltaic solar energy

conversion and biomass.

Growing reputation in energy

efficiency and niche expertise

in blue energy, hydropower

and geothermal energy.

Current policies not

enough to meet current

targets.

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Large public

expenditure on

sustainable energy

technology. Ranked

6th in the world.

Has a 20% RET for

2020, 2% increase in

energy efficiency per

year and a 30%

reduction in GHG

emissions by 2020.

Feed in tariffs to

stimulate

development of

renewable energy

with different levels

for each technology.

Substantial support

for electric vehicles in

order to reach a target

of 5% electric

vehicles by 2020.

IRELAND 172.5

(2009)

6.2 Enterprise Ireland has a

cleantech strategy in

place which aims for

Ireland to be a global

centre in cleantech.

Include a number of

policy initiatives and

programs to promote

finance, research,

Publicly stated that that it

wants to be the Saudi

Arabia of ocean and wind

energy.

Wind, wave, tidal and

biomass, smart metering

and smart networks.

Massive public

expenditure program

Electricity Supply

Board (ECB) plans to

invest $16.5 billion

into renewable energy

and clean technology.

Includes investments

Natural resources, a strong

Government commitment to

renewable energy

development and deployment

and internationally proven

relevant expertise.

Strengths also in energy

efficiency, water

Just beginning to tap into

its renewable energy

sources. Began to

investigate how to

integrate larger amounts

of wind electricity into its

island grid.

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industry collaboration,

management capability,

internationalisation and

entrepreneurship

IDA has a comprehensive

FDI strategy in place to

attract cleantech

investment.

in wind, wave, tidal

and biomass, smart

metering and smart

networks, as part of

an overall 22 billion

investment.

Target of 41%

renewable gross

electricity

consumption by 2020.

Recently extended to

cover

biomass/anaerobic

digestion CHP, ocean

energy (wave and

tidal) and offshore

wind.

Public expenditure:

$6.3 billion directly

invested in renewable

energy projects, with

$10.2 to be spent on

smart metering and

smart networks.

Renewable energy

feed in tariff covers

large scale wind

energy, hydro,

biomass landfill gas,

and other biomass.

Provides wide range

treatment/management,

BioEnergy, waste

management.

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of incentives across

economy to adopt

new energy

efficient/renewable

energy technologies

and advanced waste

management systems

including grant

support, feed in tariffs

and taxation

measures.

Carbon tax of

15/tonne on liquid

and gaseous fossil

fuels (installations

falling under the EU

ETS are exempt).

Public funding and

programs in place to

build up research

capabilities and skills

in areas with wave

energy research a key

focus.

Has cut read tape for

large scale renewable

energy facilities such

as wind turbines and

CHP/Tri Generation

installations.

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Has comprehensive

wind energy research

and development

program in place.

National Climate

Strategy

for an 80% reduction

by 2050 covers all

sectors.

ISRAEL 207 (2009) 7.5 Israel NEWTech program

promotes water

technology and renewable

energy and focuses on

R&D, skills, innovation

and export development.

Strong policies focused

Solar and water.

Focus on water and solar.

R&D investments

Renewable energy

exports. Israel has a

strong cluster of over 100

companies with

renewable energy

solutions.

Has 20% emissions

reduction target

beginning in 2020.

Aims to produce

2,000MW of

renewable energy by

2020.

Announced a NIS 2.2

Billion national action

plan to reduce

greenhouse gas

emissions and action

plan. The plan

includes promoting

new Israeli

technologies and

green construction.

Local subsidies (feed

in tariff).

Heavily technology focused

with strengths in solar and

water. Advanced in water

management and water

desalination. Notable

achievements including

inventing drip irrigation and

are the number one recycler

in the world.

Solar energy technologies

Comprehensive R&D

environment with a strong

synergy between academia

and industry. Strong early

stage private and

government investment.

Less than 0.5% of energy

production comes from

renewable energy. Has

fallen far behind its

renewable energy target

due to failure to carry out

large projects. Problems

in allocating land for

projects and obtaining

permits for projects have

been cited as major

obstacles.

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SINGAPORE 251.2

(2009)

5.1 Singapore is an energy

intensive economy and its

Cleantech policy is driven

by its response to climate

change, a need to find

alternative energy

sources.

Clean energy is seen as a

major economic and job

creation opportunity.

Government has a USD

453 million cleantech

blue print with strong

R&D and innovation

focus.

Initiatives and funding to

attract clean energy

companies to establish

operations in Singapore,

encourage R&D and test

bedding of clean

technologies.

Solar energy is a major

focus and also fuel cells,

bio-fuels, wind energy,

tidal energy, biomass,

energy efficiency, and

carbon services.

Does not have targets

in place to reduce

carbon emissions.

Singapore Green Plan

2012 states a national

target to improve

carbon intensity by

20% by 2012 through

energy efficiency.

Sustainable

Development

Blueprint sets targets

to reduce energy

intensity by 20%

from 2005 levels by

2020 and 35% from

2005 levels by 2030.

Generous tax and

other financial

incentives (has one of

the lowest corporate

tax rates) to attract

regional headquarters

or R&D centres.

Also offers a range of

support services and

has strong capability

in attracting outside

expertise to build own

industry.

Developing as a regional

research and business centre

for clean energy products and

carbon trading. Has attracted

30 carbon firms.

Successfully major players in

solar energy, carbon services

and water technologies.

Home to largest R&D wind

technology R&D centre

outside of Denmark. REC of

Norway and Vestas Wind

Systems of Denmark have

made large strategic

investments.

Collaboration with

international companies has

led to technological

breakthroughs such as smart

grids and electronic vehicles

have been test bedded across

the country.

Cleantech policy is driven

by need to diversify its

energy supply is

vulnerable (80% of

Singapores electricity is

generated from natural

gas piped from Malaysia

and Indonesia).

Singapore, together with

South Korea, is classed as

a developing country

under Kyoto, and

therefore has no targets to

cut emissions between

2008 and 2012.

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R&D capabilities via

research institutes

such as the Solar

Energy Research

Institute (SERIS).

CleanTech One is an

eco business park will

focus on Cleantech

R&D and the

development of the

sector.

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A. DENMARK

Renewable energy policy

Denmark has a long history of diversified support for renewable which has led to its

comparatively high share of renewable energy production. Denmarks active energy

policy was launched as a result of the oil crisis of the 1970s with a shift towards gas,

expansion of CHP, development and expansion of wind energy, and biomass use and

it has gone from being 99% dependent on sources of foreign oil to becoming

completely energy self sufficient.

In 2006 the Government proclaimed a long term vision for Denmark to become 100%

fossil fuel free. The governments medium term objective is to double the share of

renewable energy, so that it accounts for at least 30% of energy consumption by 2020

and 20% by 2011 (gross energy consumption) compared to 15% in 2007.

Furthermore, the political parties formally agreed to promote the intelligent

management of the future electricity grid including the extended use of technologies

such as smart meters and smart grids.

Denmark plays a central role in the development of the wind energy industry and has

a share of 40% of the world market. The sector employs 20,000 people and has a

combined turnover of EUR 3 billion.

Denmark is known primarily for wind and biomass. Areas such as water purification,

air pollution control and intelligent energy solutions are also developing rapidly. The

strict political demands for greater use of renewable energy such as wind and bio-

energy have provided the impulse for technological development, and have created a

showcase for Danish cleantech resulting in many other countries seeking to emulate

Denmarks achievements in this area.

The 1980s and 1990s saw a strong political commitment to wind energy which saw

the development of a strong domestic market and interplay between producers,

authorities and knowledge institutions. Denmark is home to the worlds leading wind

turbine manufacturer and a number of the leading suppliers to the industry are Danish.

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Biomass has also experienced significant growth as an energy source with around 13

per cent of Denmarks energy consumption currently generated from biomass.

Denmark also has strong research activities in future technologies such as hydrogen

and fuel cell, with leading edge research programmes at Ris and the Danish

Technical University. There is both industry and government funding for research,

development and demonstration projects covering biomass to bio energy, conversion

technologies and waste to energy.

Strong cleantech export growth

Over the last 10 years, exports of Danish cleantech have grown at three times the rate

of total exports. Exports of energy technology reached EUR 8.6 billion in 2008,

making Denmark the leading EU country in exports of energy technology as a

proportion of total exports.

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B. FINLAND

Finlands resource constraints in oil and gas reserves mean that Finns have had to

develop customized ways of energy generation and energy efficiency. The country's

harsh winters make it one of the highest energy users (per capita) in the world, and the

area's very low population density exacerbates problems with efficient energy

transfer. As a result, Finland has been developing certain cleantech industries, such as

waste to energy, since the 1930s making it light years ahead of many other nations.

These factors have driven Finlands commitment to becoming a leader in clean energy

production and intelligent energy demand management such as smart grid' initiatives.

Finlands strengths in clean technologies lie in smart energy systems including smart

grids, district heating and cooling as well as combined heat and power generation

(CHP).

Finland's leading telecommunications companies apply their expertise in network

management gained from decades of experience with mobile telephone networks, to

make energy grids user-friendly. Finland strengths in cleantech also include energy

efficiency and waste and recycling. Strong Finnish ICT and energy efficiency

technologies are key drivers behind the smart grid and meter technologies.

The traditionally strong pulp & paper industry and the 80 per cent level of utilization

of biomass have formed the strong basis for the development of the Finnish biomass

industry and waste-to-energy solutions. Three forest industry companies in Finland

are among the top five globally and have led the way in the development of forest

industry processes. These companies are the world's leading developers of internal

recycling and reuse of treated water.

Finland has responded to tight emissions obligations for member states by using its

clean technologies for improving energy efficiency and reducing emissions in energy

production, industrial processes and transport. In addition, Finland has developed

purification technology for exhaust gases and other air pollutants.

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Renewable Energy

Finland is considered a leader in a number of Cleantech sectors and is one of the

leading users of renewable energy sources in the world. Renewables provide one

quarter of Finland's total energy consumption and account for more than one quarter

of its power generation. The most important renewable sources of energy in Finland

include bioenergy - wood and wood-based fuels in particular - as well as hydropower,

wind power, ground-source heat and solar energy.

Finland has the fastest growing renewable energy market in Europe which is

supported by ambitious renewable energy targets (currently around 30%). Finland

has signed up to an EU commitment to raise the use of renewable energy to 38

percent of its overall energy production by the year 2020 which is among the highest

in the EU.

In order to meet this challenge, the Finnish government in April 2010 announced a

major renewable energy program involving more than EUR300 million per year by

2020. It is estimated that the increase in the use of renewable energy will be

equivalent in energy output to that of three large nuclear reactors and mainly involves

mainly wood-based energy, wind power, bio-fuels and heat pumps. It is estimated

that this would trigger near EUR10 billion investments in green energy and create

10,000-20,000 jobs. The renewable energy package includes feed-in-tariff for wind,

biogas, and small-scale combined heat and power production. In addition, it would

improve energy security and boost exports of environmentally friendly technologies.

Finland uses investment subsidies and energy tax exemptions to encourage investment

in renewable energy. Solid biomass and large scale hydropower dominate the market

and biowaste is also increasing its share. The investment grants are available for

investments and research projects and can cover 40% of the investment (up to

250,000 per project). To support wind, biomass and biogas, Finland uses a tax subsidy

system. The rates increased from 4.2/MWh to 6.9/MWh. In its renewable energy

plan, Finland aims at setting up a feed-in tariff for electricity production by wind and

wood chips, but this has not yet been implemented.

Future renewable energy targets will need to be met by a large increase in the use of

wood-based energy, biomass, heat pumps, biogas and wind energy. This demand will

18

also boost technology development and the government will seek to strengthen the

position of Finnish technology and know-how providers to a global market.

According to Cleantech Finlands, Finlands competitive advantages in cleantech

include:

Products and technologies that can be seamlessly integrated into large-scale

environmental projects

Cost-efficient solutions that take advantage of the latest process and

environmental technologies

Close cooperation with major research institutes and universities

Extensive experience of project management and implementation in the Baltic

countries and Russia

Innovative technologies that combine waste management and energy production

Ideal conditions for testing new technologies including sparsely populated areas

and relatively small waste quantities.

Cleantech exports

Finlands cleantech sector is highly internationalised and the share of clean

technology exports is well above the figure for any other OECD country. In May

2010 companies from China and Finland signed 12 deals on clean technology and co-

operation in environmentally sustainable technology and solutions with a total

contract value of around $250 million and with the potential to exceed $1.84 billion.

Chinese companies have shown interest in Finnish renewable energy solutions

including bio-energy, wind power, water management, waste management and

resource efficiency. Finnish cleantech business in China is estimated to be currently

worth around EUR900 million this figure is expected to double by 2013.

The Finnish Cleantech Cluster.

Finland benefits from a strong and dynamic cleantech culture and has established a

number of cleantech clusters. Finland rated highly on the 2008 WEFs Global

Competitiveness Report on cluster development. The Finnish Cleantech Cluster has

created more than 500 new green jobs and a further 900 jobs were targeted for 2010.

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The main cleantech clusters are in Kuopio, Lahti, Oulu, and Helsinki which account

for around 60 percent of Finlands Cleantech business and 80 percent of its cleantech

research. Each area specializes in different aspects of cleantech and is responsible for

spearheading a national project of significance. The clusters aim to promote the

growth and internationalization of their businesses. Environmental monitoring, which

combines ICT and environmental expertise is a common theme of the cluster.

Environmental monitoring is one the fastest growing areas in environmental

technology and the Cluster has a number of major projects in this field.

Lahti Science and Business Park is the coordinator of the Finnish Cleantech Cluster

and has generated more than 100 investment deals. The clusters has achieved a

primary goal to create + 40 new high-growth companies annually. It also aims to

increase Cleantech VC investments to 15% of total investments.

Kuopios focus is on national spearhead projects involving a technology network

concentrating on climate, air quality and health. Environmental informatics is also a

key focus. The Oulu national spearhead projects are catalytic air purification and

water purification. Helsinki projects include environmental monitoring and urban

energy efficiency.

The cluster is highly internationalised and has a strong focus on neighbouring

countries including Russian and the Baltic States. Japan and the USA have been

targeted and agreements are in place with both China (FECC) and India (through the

strategic collaboration with YES Bank India). Agreements with other EU partners are

also being developed. LSBP hosts cleantech investor events annually including

cleantech workshops and Cleantech Venture Day. Cluster success stories include

Eagle Wind power, EcoCat, Numcore and Green Stream Network.

Finnish Cleantech R&D programs

The Cleantech sector in Finland has strong R&D support in the form of strong

governmental R&D and growth financing. Finnish governmental R&D financing in

2010 totaled a record 230 million Euros for energy and environmentally sound

solutions.

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Government-backed VC funds such as Veraventure Finnish Industry Investment help

high-growth companies raise financing. Finland also offers subsidies and tariff

schemes for households to install energy saving applications, such as heat pumps and

geothermal energy. In Finland there is a culture sharing business risks between the

public and private sector. Finland has created a variety of new financing tools

combining public & private capital however the government does not traditionally

take a direct financial position in the technology.

Finlands Renewable Energy Market

Finlands renewable energy market consists of the following sectors.

Bioenergy

Finnish companies have decades of experience and strong position in exporting bio-

energy technology. Advanced technology covers the entire chain, from collection of

wood-based material to the boilers using biomass. Finnish companies in the forest and

energy industries are also currently developing new generation bio-fuels from wood-

based raw materials and also non-wood and non-food vegetable matter. In 2007

Finland established the BioRefine Technology Programme to promote new

Bio-mass products. The goals are to develop innovative new products, technologies

and services based on biomass refining and bio refineries and to strengthen and

expand existing biomass expertise in energy and forest industry to new areas.

Solar

Finland has investing in the development of solar cells, panels and heating systems

since 1980s and Finnish technology is in use worldwide for powering telecom base

stations, water pumping, health centres and schools in remote areas, especially in

developing countries.

Wind

Wind power production only accounts for 0.3 percent of the Finnish electricity

consumption, however Finnish wind power technology providers with advanced

21

technologies are significant players in the market and its share is expected to grow

with significant investment planned in coming years. During the next 10 years, it is

forecast that at least 1,000 new wind generators will be built in Finland.

Water and waste water

Finland has more than 6,000 groundwater aquifers and nearly 120,000 lakes. To

shelter the highly vulnerable water resources and systems, Finland has developed the

most sustainable water management level in the world according to the UN Water

Poverty Index. Finland has been a pioneer in preventing pollution in water systems

since 1940 and has led to the development in technologies and consulting services for

reducing water use, closing industrial water cycles and for efficient waste water

treatment. Finland is the home to the number one supplier of coagulants and number

three supplier of flocculants for water treatment in the world.

Finland provides comprehensive technologies and services globally using leading

technology to avoid water pollution and deterioration of the environment in complete

water and waste water treatment plants - from chemical coagulation and precipitation

to biological treatment support, odour and corrosion control, disinfection, and sludge

treatment - and optimizing the performance of these plants.

Energy efficiency

Due to its energy-demanding industry, cold climate and long distances, Finland has a

long history of investing in energy efficiency technologies, covering the entire chain

from energy production to its end use. Finnish technologies in energy efficiency are

well developed in the following areas:

Combined heat and power generation (CHP) or co-generation

District heating and cooling

Efficient industrial processes

Automation and environmental measurements

Smart grids and power electronics.

Finland has implemented voluntary energy efficiency agreements which help to

support the sector. A feed-in tariff for biogas CHP (electricity supply) and small scale

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wood based CHP electricity production is planned within the renewable energy plan.

Finnish companies invested over EUR 377 million in energy efficiency from 1998 to

2007. These investments have resulted in energy savings of 7.35 terawatt hours -

comparable to the district heat consumption of the city of Helsinki. The agreements

will play a central role in the national implementation of the EU Energy Services

Directive applying to companies that are not part of the emissions trading scheme.

The goal is to make their energy consumption 9 percent more efficient by 2016.

Waste-to-energy

Finland has strong expertise over the whole waste management chain. Lahti has one

of the worlds most modern waste management centers where 90% of the citys

municipal waste is recycled, with the sludge being converted into bio-gas. Specific

strengths include:

waste separation, collection and transportation, logistics and planning

waste recycling and reuse

waste-to-energy solutions

composting and digestion of organic waste

utilization of by-products, such as ash, slag and crushed concrete

landfill technology including gas collection and treatment

automation, measuring and monitoring waste management chain

Co-generation

The International Energy Agency (IEA) has stated that Finland is the 'model for the

world' in co-generation with high efficiency and low emissions.

The Finnish energy production system is among the worlds cleanest with carbon

dioxide emissions per produced kilowatt-hour below 300 kWh/kg CO2.

Co-generation makes it possible to achieve a total efficiency of 8090 percent, or

even higher. Fuel consumption and carbon dioxide emissions are roughly 30

percent less compared to generating heat and power separately. For instance, co-

generation saves 11 percent of Finlands primary energy consumption annually.

In the city of Helsinki, district heat, district cooling and electricity are produced

on a large scale in a single process. The emissions have decreased and the air

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quality in Helsinki has improved considerably since the 1990s despite the fact

that energy production has increased by more than 60 percent. The citys energy

company has received awards from the UN and the EU.

Air Pollution

Finnish technology expertise for air protection includes:

solutions to reduce emissions from machines, power plants, ships and vehicles

catalytic technology for volatile organic compounds (VOC) treatment

information and communication solutions to reduce the need for physical mobility

utilizing satellite information to help drivers to avoid traffic congestions

measuring air quality and process emissions

development of measuring instruments.

Clean technologies in logistics and transport

Finlands geographic location in Northern Europe results in long transport distances

within the country. This has resulted in the development of many clean technologies

in logistics and transport:

Energy auditing tools focusing on transportation chains

Emission control devices suitable for new vehicles and for retrofitting in existing

fleets

Further Finnish strengths in clean energy technologies also include expertise in

improving productivity and reducing emissions via:

intelligent automation and information management systems as well as

optimization solutions for process and the energy industry

distributed networked automation for reliable distributed energy production

measuring, analysis and monitoring air, water and soil

satellite-based detection of floods and landslides and assessment of forest

resources

utilization techniques of earth observation data.

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C. HOLLAND

Like most advanced industrialized economies, the Dutch economy faces the challenge

of meeting future energy supply and dealing with the impacts of climate change. The

development of sustainable energy technology is a top priority and a 20% renewable

energy target has been set for 2020 to help achieve this goal including an agreement

to substitute biomass for coal.

The Netherlands has the potential to be among the worlds leading nations in the field

of biomass and offshore wind energy, thanks to its geographical location, lengthy

coastline, good harbours and a strong maritime sector. It has developed specialist

expertise in large renewable energy projects in offshore wind energy, solar energy

conversion and biomass. It has a growing reputation in energy efficiency and also

managed to develop specialist niche expertise in areas such as Blue Energy and

geothermal energy.

Key Dutch Cleantech sectors

Sustainable energy

generation

Smart Grids

Energy efficiency

Biomass

Solar energy

Waste processing and

management

Water

Wind energy

Billing and

monitoring

Energy

management

Storage

Build

environment

Glasshouse

horticultural

sector

Industry

Infrastructure

Transport and

mobility

The Netherlands host an impressive array of world leading businesses and knowledge

institutes specialising in research and development (R&D) of renewable energy

technologies including the roll out of large scale demonstration projects. The

Netherlands have had been very successful in being able to push new frontiers in

technology and increased complexity of solar cells and has matched these production

25

techniques in wind turbine modelling and in harnessing biological processes for using

biomass in electricity and fuel generation. The Netherlands is considered an

international leader in the fields of wind energy, biomass, bio-fuels and photovoltaic

solar energy; the direct conversion of sunlight into electricity by means of a solar cell.

The Netherlands has a 15% share of the world market in the construction of wind

farms. Successful Dutch companies in this area are Sif en Smulders for wind turbine

masts, and world players such as Ballast Nedam, Van Oord, IHC Merwede and Vroon

for laying the foundations and erecting wind turbines. GustoMSC, Huisman and IHC

are strong in the design of wind turbine installation vessels.

The Netherlands is a niche player in photovoltaic solar energy (PV), hydropower

and geothermal energy and can boast several successful manufacturers

of solar cells and solar panels such as Salland Solar and Scheuten Solar. The

turnover of these companies is small in both absolute terms and in global terms.

The Netherlands has a strong position in the production of machinery for

manufacturing solar cells is much stronger, with companies such as Smit Ovens and

OTB Solar.

KEMA, Wetsus and Redstack hold a unique and leading position in the field of Blue

Energy which involves generating electrical power through Reversed Electrodialysis

(RED), from the chemical potential difference between salt and fresh water.

In the field of geothermal energy, i.e. tapping the earths internal heat, the

Netherlands is home to international players for subsoil mapping such as TNO, IF

Technology, PanTerra Geoconsultants and Fugro. Well Engineering Partners are

active in the field of drilling techniques.

Research institutes and programs

The Netherlands is home to leading research and knowledge institutes such as ECN,

TNO, three Dutch universities of technology and the universities of Wageningen,

Groningen, Utrecht, Leiden, and Nijmegen. The Netherlands is ranked sixth in the

world in terms of public expenditure on sustainable energy technology. However, this

26

expenditure results in only limited commercial application when compared

internationally.

The Netherlands cleantech sector benefits from a wide range of substantial

government subsidy schemes for the research and development of sustainable energy

innovation projects. The most important of these include:

In 2008, the Netherlands Cabinet announced the Societal Energy Innovation

Agenda (IAE) involving a budget of 438 million Euros available for energy

innovation. The IAE focuses on speeding up application of the results from the

research phase and gives particular support to pilot projects and large-scale

demonstration projects.

Energy Research Subsidy (EOS) and subsidy schemes which is part of the Societal

Energy Innovation Agenda (IAE). The EOS programme focuses on researching,

developing and introducing new energy technologies. The subsidy schemes involves a

budget of approximately 30 million Euros a year to support the entire chain from

fundamental research up to and including initial practical demonstrations. In addition

there are four specific Innovation Programmes which fund energy projects.

(Maritime IP, Materials M2i, PointOne and the Polymer IP).

The Advanced Dutch Energy Materials (AEM Innovation Lab) is a 30 million

Euro materials programme. AEM is a joint initiative of ECN and the three Dutch

universities of technology. ADEM focuses on material developments for solar cells

and lightweight materials for wind turbines.

A subsidy has been awarded to The Far and Large Offshore Wind (FLOW) project

for offshore generation of electricity. This project covers research into and the

development of efficient wind turbines in the North Sea, innovative foundation

concepts, maintenance strategies and installation techniques for deep water.

Another part of the project is dedicated to connecting these wind farms to the

electricity grid.

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The Maritime Innovation Programme (MIP) involving the Ministry of Economic

Affairs has earmarked a sum of 39.5 million Euros developing offshore wind farm

activity. The Innovation Programmes Point-One, Polymers and Materials (M2i), also

funded by the Ministry of Economic Affairs funds renewable electricity generation

and enabling infrastructure.

Point-One (nanotechnology, embedded systems and mechatronics, running with 151

million euro subsidy) R&D-projects are executed on solar PV thin-film and cell

production technologies, advanced mechatronic drives for offshore wind turbines and

embedded systems and sensor technology in buildings. One of the focal points for the

Polymer Innovation Programme (2007-2011 worth 47.5 million euro) focuses on

the development of functional polymers for solar-PV applications. The Materials

innovation programme M2i (running 2007-2011 with a 34.5 million euro subsidy)

runs projects on metals in solar-PV applications and lightweight materials for

windturbines.

The Joint Solar Programme, an industrial partner programme involving Stichting

FOM in association with Shell, Nuon, and the NOW Chemical Sciences division. This

programme runs from 2005 to 2013, has a budget of 7.2 million Euros and focuses on

a new generation of PV cells with greatly improved properties.

Another three schemes run by the Ministry of Economic Affairs stimulate the

largescale application of energy technology: Energy Investment Allowance (the tax

scheme), the Sustainable Energy Incentive Scheme (SDE) and the Subsidy

Programme for Geothermal Energy.

Netherlands intends to obtain 20% of

Solar energy: key highlights

The Netherlands has an excellent knowledge base in the field of solar energy. The

Energy Research Centre of the Netherlands (ECN) is among the world leaders in

solar energy research, focusing on the development of the next generation of

photovoltaic systems.

The Netherlands has extensive expertise in the production of ultra-thin

photovoltaic films, which enable solar energy systems to be integrated into glass

28

and other components of a buildings exterior without detracting from its

aesthetic qualities.

Dutch manufacturers have extensive experience in designing and implementing

large-scale photovoltaic systems, both in the Netherlands and especially other

countries.

Over the past 25 years, Dutch suppliers of solar collector systems have made

major advances in terms of the efficiency, visual integration and modularity of

their products, establishing extremely high standards of quality.

Dutch solar collector systems can be supplied with a runback option which

automatically shuts down the collector in extremely hot or cold weather. The fluid

in the system (used to transfer heat) drains into a buffer container inside the

building where it is protected against the elements. This Dutch invention renders

the entire system extremely reliable and virtually maintenance-free.

For many years, Dutch researchers have been working to develop a combined

photovoltaic and solar collector panel which will generate heat and electricity

simultaneously and a working prototype has heen developed. Where space is

limited, this solution can generate considerably more energy than two separate

parallel systems. Within the next ten years, electricity from solar energy is

expected to become significantly less expensive than that generated using fossil

fuels.

Offshore Wind Energy

The Dutch are particularly strong in offshore wind energy solutions. Wind is a robust

and sustainable source of energy. It is inexhaustible, and large-scale use of offshore

wind turbines can make an enormous contribution to the global production of

sustainable energy, and hence to the attainment of the world climate objectives. In

2008, a second Dutch offshore wind farm, Q7, became operational. Located 23

kilometres off the coast of IJmuiden in waters of 19 to 24 metres deep, the wind farm

consists of 60 turbines each with a capacity of two megawatts. Its the only wind farm

in the world thats situated so far from the coast and in such deep water. The farms

electricity is transported to the mainland through an undersea cable, and is expected to

yield almost 450 GWh per year. Dutch wind energy expertise is being applied

29

internationally. The Dutch have been asked to assist with Indias endeavour to supply

18,000 villages with renewable energy, particularly via wind turbines.

Two Dutch offshore wind farms have been in operation since March 2009. The

Egmond aan Zee Offshore Wind Farm (OWEZ) is a large-scale demonstration project

with 36 wind turbines, each with a capacity of 3 MW. OWEZ is owned and operated

by Shell and NUON, and was built by Ballast Nedam and Vestas. The purpose of this

project is to develop knowledge and experience in building.

In addition to knowledge and experience in the construction of complete wind

turbines, the Netherlands has a number of (off-shore) specialists in areas such as blade

design, installation technology, on-site maintenance, and foundation design. The

Dutch companies Heerema, Mammoet van Oord, and Ballast Nedam are noted for

their expertise in foundation technology for offshore wind farms. Almost all vessels

(the so-called jack-ups) used to install offshore wind turbines were designed by the

Dutch company IHC-Gusto.

The Netherlands has an excellent knowledge base with regard to wind energy. The

partnership of Delft University of Technology (TU Delft), ECN, and WMC is among

the Top Three in the country in the field of wind energy research. The Netherlands

has a number of excellent test facilities, including ECNs test field, WMCs blade and

materials test lab, and the wind tunnels of the Netherlands Organization for Applied

Scientific Research (TNO), TU Delft, and the German Dutch Wind Tunnels company.

Given the space available and the high wind speeds at sea, offshore wind energy has

far greater potential than onshore wind energy. It has been estimated that offshore

wind energy could actually produce over twice the worlds projected electricity

requirement in 2020. The turbines can be clustered in huge wind farms, well out of

sight from the coast. They can then be much larger than their onshore counterparts,

which are generally subject to height restrictions to reduce adverse visual impact.

Moreover, the noise of the blades and rotation mechanisms will raise no objections

when the turbines are sited offshore.

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Dutch engineering and consultancy companies have gained much experience in

producing Environmental Impact Assessments, based on the Egmond aan Zee project

and various ongoing offshore projects in the North Sea. It is projected that electricity

generated using offshore wind energy will offer a cheaper alternative to fossil fuels by

the year 2020. Foundation technology is a very important aspect in terms of both cost

and and environmental management and there is a strong presence of companies in

these fields such as Grontmij, Heerema, Mammoet van Oord, and Ballast Nedam have

broad expertise and much practical experience in this area.

Greenhouses

Greenhouses as energy sources is a Dutch initiative which uses greenhouses as

energy sources for residential areas. The greenhouses serve as solar collectors for

neighbourhood, while the homes supply CO2 for the crops inside the greenhouses.

City of the Sun

Another example of a high-quality clean technology solution from the Netherlands is

the City of the Sun in the Dutch town of Heerhugowaard. This newly-built

neighbourhood will be carbon neutral, producing enough energy to offset what it

uses. The City of the Sun is the largest photovoltaic (PV) project in the housing sector

worldwide. The project will also include wind turbines, and every home will be built

according to high standards of energy efficiency.

Cleantech Holland

Cleantech Holland is the Netherland governments export development agency

responsible for promoting the cleantech industry. Its mission includes making a

valuable contribution towards the achievement of the national, European and

international climate objectives by promoting the products and services of Dutch

clean technology companies on the international markets.

31

Cleantech Hollands chief objectives include:

To raise international awareness of the Dutch clean technology sector.

To position Dutch products, concepts, and innovations in clean technology on the

international markets.

To achieve substantial export growth in clean technology products and services.

To promote international cooperation between private sector organizations,

governments, and research institutes.

Cleantech Holland holds trade and export missions and will be conducting a mission

for Dutch companies to the USA in February 2011.

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D. IRELAND

Renewable energy policy

In March 2008, Irelands state-owned Electricity Supply Board (ECB) announced

plans to invest $16.5 billion into renewable energy and clean technology, aiming to

halve its carbon emissions within 12 years, and get to carbon net-zero by 2035. The

three key drivers behind the strategy include dealing with the consequences of climate

change, energy security and competitiveness of energy supply.

The ECB said it expects to be delivering one-third of its electricity from renewable

generation by 2020. This includes over 1,400 MW of wind generation, in addition to

wave, tidal and biomass. The ECB said that with the development of a single U.K.-

Irish electricity market by 2020, it plans to invest in more generation plants and

renewables in the U.K. and further plants in Europe.

The ECB plans to make significant investments into wind, wave, tidal and biomass, as

well as smart metering and smart networks, as part of an overall 22 billion, or $34.6

billion, investment by the utility. According to ECB, $6.3 billion would be directly

invested in renewable energy projects, with $10.2 to be spent on smart metering and

smart networks. Ireland has also announced a push for tidal and wave power with a

$38 million initiative for research and facilities and a new feed-in tariff. Under the

new program, the remaining half of the overall $34.6 billion will go toward the

country's electricity infrastructure, with the utility saying the upgrades would facilitate

the development of up to 6,000 megawatts of wind on the island.

In addition the Irish government has put in place a range of initiatives to:

Provide strong and wide ranging set of incentives for the domestic and business

sectors of the economy to adopt new energy efficient/renewable energy

technologies and advanced waste management systems. This includes grant

support, feed in tariffs and taxation measures.

Make available strong public funding to build up research capabilities, skills,

institutions and infrastructure in key areas such as wave energy research.

33

Develop a streamlined and effective administrative/planning process for

implementing test programmes in emerging technologies such as wave energy and

the installation of large scale renewable energy and energy efficiency facilities

such as wind turbines and CHP/Tri Generation installations

IDA Cleantech FDI Strategy

IDA has a comprehensive FDI strategy in place to attract Cleantech investment.

Ireland strategy is to market Irelands emerging cleantech sector including its natural

resources, a strong Government commitment to Renewable Energy development and

deployment and internationally proven relevant expertise.

According to IDA, many of the 1,000 multinational companies already operating in

Ireland are diversifying into this sector and taking advantage of their local know-how

and technology development expertise to explore new technologies and energy

efficiencies. The Irish CleanTech sector directly comprises companies in Energy

Efficiency, Renewable Energy, Waste Management, BioEnergy Water and Services

sectors. It also encompasses companies from a range of other diverse industries

including engineering, software, building management and electronics. Ireland also

has a growing local clean technology industry with companies like Wavebob and

Ocean Energy developing and testing ocean energy prototypes around Ireland.

Irelands key competitive advantages in Cleantech actively marketed by IDA include:

The Irish Government has a strong commitment to reaching a range of very

ambitious renewable energy targets including a plan to have 40% of all electricity

generated from renewable sources by 2020.

Ireland has some of the best wind and wave resources in the world which Ireland

an ideal research and test bed location and significant market for renewable

technologies in its own right. Ireland is a strong location for the research and

development of technologies and systems that can allow very high levels of

intermittent energy sources, such as wind and wave, on a conventional grid

system or as part of a smart grid.

Ireland is a location for a number of high technology sectors such as ICT, Bio

Pharmaceuticals and Medical Devices, all of which also have strong synergies

with the technologies and skills underlying clean technology. These include

34

silicon based solar technologies, electronic/computer components and software, a

wide range of biological processes needed for next generation bio-fuels and waste

treatment systems and very high/medical grade precision engineering technologies

and skills.

Research and Development is a key activity for Clean Tech companies and Irelands

broad range of universities and educational institutes are seen as an important part of

Irelands attraction for Cleantech. Companies will often locate to a region containing

university that they can partner with to achieve their R&D requirements.

In addition Ireland has put in place a range of initiatives to:

Provide strong and wide ranging set of incentives for the domestic and business

sectors of the economy to adopt new energy efficient/renewable energy

technologies and advanced waste management systems. This includes grant

support, feed in tariffs and taxation measures.

Make available strong public funding to build up research capabilities, skills,

institutions and infrastructure in key areas such as wave energy research.

Develop a streamlined and effective administrative/planning process for

implementing test programmes in emerging technologies such as wave energy and

the installation of large scale renewable energy and energy efficiency facilities

such as wind turbines and CHP/Tri Generation installations

Research and Development is a key activity for Clean Tech companies and Irelands

broad range of universities and educational institutes are seen as an important part of

Irelands attraction for Clean Tech. As such, companies in this sector will often locate

to a region containing an educational establishment that they can partner with to

achieve their R&D requirements.

According to IDA, the main cleantech sectors include:

Wind Energy

Ireland has one of the best wind energy resources in Europe and has installed wind

turbines of 1,000MW in capacity with a further 3,700MW of applications filed to

connect to the grid.

35

A set incentive feed-in tariff of 63 per MW hour for onshore wind and 140 per

MW hour for offshore wind is available.

Wind Energy research and development work is being undertaken at Dundalk

Institute of Technology, University College Cork, Trinity College Dublin and

University College Dublin.

Ocean Energy

Ireland has the highest wave energy resource in Europe, with an estimated

generation capacity of 60GW (1/5 of Europes total resource).

An incentive feed-in tariff of 220 per MW hour was introduced in 2008 and fixed

for a period of 15 years.

Companies including Ocean Energy, Wavebob and Hydam are developing and

testing wave energy prototypes at dedicated test sites around Ireland.

Examples of Ocean Energy research and development work in Ireland include

turbine design at the University of Limerick, wave tank modelling at testing at

University College Cork and wave energy modelling at Queens University in

Belfast.

Solar Energy

Driving solar activity development in Ireland is its widely respected experience in

the information communication & technologies and engineering sectors.

Intel, Analog Devices and Xilinx have built a cluster of advanced skills in

materials and device development, semi-conductor manufacture, IC design and

processor technologies.

World-class research centres such as the Tyndall Institute at University College

Cork and the Centre for Research on Adaptive Nanostructures and Nanodevices

(CRANN) at Trinity College Dublin have research strands of key interest to the

solar industry.

University College Dublin has established a Strategic Research Cluster focusing

on Advanced Biomimetic Materials for Solar Energy Conversion.

36

Bioenergy

Ireland has significant potential to develop its bio-energy resources to generate

electricity for use as transport fuels, for use in heating and cooling of buildings

and for conversion to bio-chemicals as industrial raw materials.

A Feed-in-tariff for Biomass (landfill gas) of 7.0 cent/kWh was established in

2007.

Energy Management

Ireland has a strong competency mix of sensor, data management, technical

support, project consultancy and smart building capabilities.

Ireland has research strengths in thermal management at the University of

Limerick and the Tyndall Institute as well as power electronics capabilities.

Companies like IBM have linked up with Irish Researchers to form the Smart Bay

Initiative which is developing and testing technologies to capture and monitor

real-time information from a marine environment.

Enterprise Ireland- Key Activities

Enterprise Ireland is the trade and technology board of the Irish Government and is

responsible for driving Irelands entrepreneurship and innovation performance.

Enterprise Irelands strategy aims to support Irish CleanTech companies at various

stages of growth and development to realise their potential for export growth.

Enterprise Irelands Cleantech Strategy 2009-2011 is to drive competitiveness and

growth and focuses on areas of strong growth potential with existing capability. EI

Cleantech focus includes:

Growing the Sector: For Ireland to be considered a global centre and leader in

CleanTech in niche areas and for EI clients to be central to that reputation; and

Improving Sustainable Development across all key clients.

Enterprise Ireland has identified the following areas as representing strong growth

opportunities for the Irish CleanTech sector in the short, medium and longer term.

37

Energy Efficiency, Water Treatment/ Management, BioEnergy and CleanTech

Services companies are positioned to grow very strongly in the short term (1 to 3

year horizon).

Waste Management and Renewables will experience stronger growth in the

medium term (3 to 5 year horizon).

In the longer term (beyond a 5 year horizon) Renewable Energy companies in the

marine, offshore wind and biomass sub-sectors are likely to deliver significant

returns. This reflects the larger investments and longer project timeframes

involved.

EI has a number of policy initiatives and programs to promote finance, research,

industry collaboration, management capability, internationalisation and

entrepreneurship

38

E. ISRAEL

Israel is fast becoming a world leader in the development of clean energy solutions.

Per capita, Israel has the largest number of startup than any other country in the world

(except the US) with 3,500 companies, mostly in hi-tech. In a recent visit Israel, Al

Gore acknowledged Israels leadership in cleantech: the people of Israel can lead

the way to renewable energy. With its unique geographical position and cleantech

know how, Israel is a natural leader in the field.

A key driver in the development of Israels cleantech industry has been its

geographical location. Due to its location and terrain, Israel is a country that has had

extremely limited natural resources. Israelis have had to overcome these barriers and

have become experts at getting the most out of limited natural resources. The

foundation of Israel's cleantech industry was laid with the beginning of the kibbutz

(collective communities) movement at the start of the 20th century. At that time, the

land was mostly semi-arid, with a scarcity of water and pockmarked by mosquito

infested swamps. Principles of sustainability and self-sufficiency were adopted from

the outset so as to "make the desert bloom".

Blessed with abundant sun light but challenged by water shortages, Israel is

continuously developing alternative technologies that generate significant energy

from the sun as well as from a host of other renewable energy sources such as wind

and biomass. Israel is considered a leading global cleantech powerhouse and is

attracting hundreds of millions of dollars in cleantech investment every year. Its

success is due to a combination of many factors: its history, attitude of the people,

ingenuity, challenges to survival and very supportive government industry policy.

A leader in water management technologies

Since its founding, water scarcity has been treated as a national priority. As a

consequence, Israel is now considered the Silicon Valley of water. Israel is considered

a world expert in the fields of desalination, water treatment and reclamation, water

safety, and agricultural water consumption via drip irrigation an Israeli innovation.

39

Israels approach to water management combines proven technologies with new and

efficient water conservation techniques, make it the worlds #1 water recycler.

Israel initiated seawater reverse osmosis (SWRO) desalination and is home to the

worlds largest SWRO desalination plant, annually producing 130 million cubic

meters, the most cost- efficient operation of its kind in the world.

Relative to its small size, Israel has devoted more resources to the development of

waste water treatment and reclamation than any other country in the world. Seventy

percent of its waste water is recycled, three times the figure of number two country:

Spain. Israel is the birthplace and world leader in drip irrigation, which has literally

turned deserts into farmlands.

It's estimated that Israel's water industry was valued at $1.4 billion in 2008 and could

reach $2.5 billion by 2011. The Israeli firm Netafim, a $500 million high-tech drip-

irrigation giant, is a world leader in smart irrigation technology and has been credited

with starting the drip irrigation revolution. Israel Newtech, which promotes Israeli

clean energy and water technologies, has identified hundreds of water companies.

Israel's key water achievements:

Israel has the most advanced national water management system

Israel, with a 75% water recycling rate, is the world's number one water recycler.

The second largest water recycler is Spain, with a rate of 12%

Israeli-invented Drip Irrigation helped achieve - of water efficiency in

agriculture the highest rate in the world

Israel has achieved the highest ratio in the world of crop yield per water unit.

Israel is home to the world's largest Seawater Reverse Osmosis (SWRO)

desalination plant, annually producing 100 million m3 at a low cost of

approximately $0.52 per m3 of water - the most cost-efficient of its kind in the

world

Israel creates 25% of its consumed water

Israel's total water consumption has remained the same since the 1960s, despite a

growing population, rising water requirements and increasing agricultural

production

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R&D support and ready access to capital

The sector is supported by very supportive government policy and a comprehensive

R&D environment involving a strong synergy between academia and industry and a

range of academic institutions and R& D centers. It is also supported by early stage

private and government investment programs, such as the Kinrot incubator (11

investments to date) and the Office of the Chief Scientist (several million dollars in

early stage R&D grants), as well as large industrial players such as IDE Technologies,

a global leader in water desalination and Mekorot, the countrys innovative

technology-oriented water carrier.

The nations cleantech industry has ready access to capital and is provides a very

attractive investment proposition to major US VC firms who are very active in the

Israeli cleantech sector. At least 40 venture funds, several of them American, manage

more than $10 billion in Israel, with an increasing share of their allocations devoted to

cleantech companies. Israel also has its own vibrant local VC community which

includes Israel Cleantech Ventures, AquaAgro and Terra Venturesthree firms

dedicated to investing in Israels cleantech sector.

Government Programs: Israel NEWTech A national program supporting Israels water technology Sector

Israel NEWTech is a national government program promoting Israels water

technology renewable energy sectors. Launched in 2006, the program promotes

Israel's water technologies in the local and global markets by supporting R&D,

participating in water related events and creating marketing tools for the benefit of the

sector. The government has invested heavily in the program and allocated substantial

resources towards strengthening the foundation of Israel's water tech cluster.

The four key elements of the program include: strengthening human capital,

increasing R & D activities, local market innovation and penetrating world markets.

There are a number of initiatives to promote each element of the program.

41

Program objectives

Increase Israeli Exports: Israel aims to double its water technology exports by

2010.

Enhance International Investment: Already a well established destination for

international investment in conventional hi-tech sectors, Israel aims to boost

international investment activity in its water technology sector.

Promote Water Technology R&D: Through international cooperation, Israel

intends to further expand its R&D activities in water technology.

Program Strategy

Back academic studies and advances professional training

Support R&D and academic research with industrial applications.

Promote novel Israeli technology implementation

Market Israelis proven capabilities worldwide.

Based on the success of the water program and the strategic importance of alternative

energy technologies, in 2008 NEWTech launched a second initiative focused on the

renewable energy sector. This program encourages Israeli companies and individuals

to enter the field of renewable energy, invest in R&D, and establish connections with

potential partners overseas. The key objective of the program is to promote Israel's

renewable energy technologies in the local and global markets.

Israel's key Renewable Energy Technologies

Israel is approach is heavily based on finding technology based solutions and it is

continuously developing alternative technologies that generate significant energy

from the sun as well as from other renewable energy sources such as wind and

biomass. A host of Israeli technology based solutions are provided below.

Solar Energy

Flat plate solar systems for water heating were perfected in Israel in the 1950s. Israel

is the world leader in the use of solar energy per capita with 85% of households using

solar thermal systems, the highest per capita use of solar energy in the world, and 4%

of Israels energy capacity. Israels Luz, a subsidiary of BrightSource, pioneered

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solar-thermal technology and built the worlds largest solar plant of its kind in the

Mojave Desert. SolarEdge boosts PV system output to enable cost efficient

production of up to 25% more energy from any PV installation.

Geothermal Energy

Global geothermal leader Ormats breakthrough turbine design converts geothermal

and solar-heated steam into electricity.

Energy from Waste

The ArrowBio process eliminates the need for prior separation of municipal solid

waste (MSW) and has a 90% recovery rate. Emefcy produces low cost electricity

($0.10/kWhr) and hydrogen in a bio-electro-chemical process from wastewater

treatment using Microbial Fuel Cell technology. Applied Cleantech recycles sewage

to produce a material called recyllose, which can then be used to produce between

120 and 135 gallons of ethanol per ton.

Fossil Fuel Replacement/Bio Fuel

TransBioDiesels enzymatic process increases the profitability of biodiesel production

from recycled greases, animal fats and plant oils by 15%-25%, while producing a

chemically clean by-product.

Energy Efficiency

Phoebus Energys hybrid heat pump system integrates with existing oil-based systems

saving 50%-70% of oil, and reducing pollution by 80%-90%. Powersines Lighting

Energy Controllers (LEC) enable dynamic voltage regulation and power consumption

optimization that save between 20%-35% of electricity in lighting.

IT Solutions/Green IT

TaKaDu uses sparse data from existing sensors and folds that in with weather data,

acoustic data, and GIS data to create a smart water grid, allowing the water utility to

improve its ability to plan and forecast, saving money and resources in the process.

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Israels Agro-tech Highlights

Irrigation

Drip Irrigation helped achieve 70%-80% of water efficiency in agriculture -the

highest rate in the world- versus 40% with open irrigation; Israel controls over 50% of

the world market.

Saline water irrigation

Warm, geothermal saline water is recycled from fishponds to irrigate a variety of

crops, from greenhouse tomatoes to grapes grown in desert conditions.

Greenhouse technologies

Spectrum-optimized plastic films and heating, ventilation and structural systems

enable the growth of more than 3 million roses, and 300 tons of tomatoes per hectare

per season, quadruple the yields of open fields.

Dairy

The Israeli cow has the worlds highest milk yields. In 2008 the average annual per

cow yield was 11,461 kg of milk.

Seeds

Some 40% of European tomato greenhouses use long shelf-life hybrid seeds created

in Israel. The worlds most popular varieties of long-shelf-life cherry tomatoes were

developed by Professors Haim Rabinowitch and Nachum Kedar of Hebrew

University.

Bio/Organic agriculture

About 100,000 ha (247,105 acres) of horticulture are under an Integrated Pest

Management (IPM) regime, reducing pesticide use by 30 - 40%.

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Aquaculture

Closed water systems developed in Israel have led to a 40-fold production increase

compared with openpond systems from 0.5kg to over 20 kg per cubic meter.

Desert Agriculture

Recovery of 35-60C geothermal water captured underground in the Arava desert is

used to heat greenhouses and in fish farming;

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F. SINGAPORE

Singapores Cleantech policy is driven by constraints in land, water and natural

resources, and it has been a key policy driver in the search for innovative responses to

challenges such as water and energy security, and rapid urbanisation. The cleantech

industry has hence been identified as a key growth area for Singapore and its

government is attempting to quickly develop the country as a regional research and

business centre for clean energy products and financial services such as carbon

trading among corporations. In addition to one of the region's lowest corporate tax

rates, Singapore now offers a range of support for green corporations, particularly for

those that chose to establish regional headquarters or R&D centers.

Singapore has built up its energy R&D capabilities through the development of

research institutes such as The Solar Energy Research Institute of Singapore (SERIS),

and the recently opened Energy Research Institute at NTU (ERI@N). Singapore also

collaborates with international companies which have led to leading innovations

which have been test-bedded across the country. These include rooftop solar systems

in public housing projects, smart grids (named "Intelligent Energy Systems") and

electric vehicles.

Singapore has a strong track record in attracting outside expertise to build its own

industry. Major players in solar energy, carbon services and water technologies have

chosen to locate their activities in Singapore and it has been immensely successful in

attracting leading industry players such as Renewable Energy Corporation (REC) of

Norway and Vestas Wind Systems of Denmark to make strategic investments into the

country. According to the Singapore government, RECs integrated solar

manufacturing complex is earmarked to be the largest in the world and is a key plank

of the citys ambitions to be a player in the cleantech space. The first phase of RECs

planned investment in Singapore will hire about 1,300 employees and begin

operations in early 2010 to produce solar wafers, cells and modules. When the

complex is fully developed, REC could produce up to 1.5 gigawatts of solar products

in Singapore for global markets.

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Denmark's Vestas, the world's largest supplier of wind power systems, chose

Singapore to host its regional headquarters, citing the country's location, infrastructure

and skilled workforce as a major factor for opening its largest research facility outside

Denmark in 2008. Vestas is investing up to SGD$500 million (USD$328 million)

over the next 10 years to develop its largest wind technology R&D center outside of

Denmark.

Financial incentives such as low trading and company taxes have also drawn 30

carbon firms to the city-state. Clean energy project developer Tricorona of Sweden

has set up its global administrative headquarters in Singapore to manage sales and

marketing activities on ca

cleanenergy policies of small nations

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