VZCZCXYZ0010
RR RUEHWEB

DE RUEHTV #1230/01 1631309
ZNR UUUUU ZZH
R 111309Z JUN 08
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC 7057
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
INFO RUEHAM/AMEMBASSY AMMAN 4258

UNCLAS TEL AVIV 001230 
 
SIPDIS 
SENSITIVE 
 
Department for EEB/ESC/IEC and NEA/AIA 
DOE for EERE 
 
E.O. 12958: N/A 
TAGS: ENGR EFIN EINV EAGR IS
SUBJECT: DOE A/S Karsner Explores Renewable Energy Research in 
Israel 
 
¶1. (SBU) Summary.  U.S. Department of Energy Assistant Secretary 
Alexander Karsner visited Israel May 19-24 to explore alternative 
and renewable energy research and production.  He and his team met 
with academic and private sector researchers, as well as companies 
already selling renewable energy generating equipment and venture 
capital firms investing in new technologies.  Karsner signed with 
the Director General of the Ministry of National Infrastructure an 
Implementation Agreement that advances the new US-Israeli joint 
Energy Research Cooperation program.  On May 21, Deputy A/S Steve 
Chalk addressed an Alternative Energy Conference held at Tel Aviv 
University.  The visit opened many new avenues for cooperation on 
biofuels, fuel cells, solar energy and energy storage technologies, 
and many Israeli researchers expressed interest in visiting the 
National Renewable Energy Laboratory and other DOE lab facilities. 
End Summary. 
 
¶2. (SBU) Assistant Secretary for Energy Efficiency and Renewable 
Energy Andy Karsner visited Israel May 19-24 to explore the variety 
of renewable and alternative energy research underway, and to 
further clarify with the GOI how implementation of the new joint 
energy research program should proceed.  Karsner was joined by 
Deputy A/S Steven Chalk, Senior Advisor Michael Bruce, Energy Policy 
Analyst Scott Pugh, and NREL Manager of Intergovernmental Programs 
Ron Benioff.  The DOE team accompanied by Embassy ESTH officer met a 
broad cross-section of Israel's private sector producers and 
investors, academic researchers, and government policymakers engaged 
in alternative energy work. 
 
¶3. (U) Karsner's visit to Israel coincided with a Tel Aviv 
University Conference on Renewable Energy.  This conference, opened 
by the Ambassador, featured an address by Deputy Assistant Secretary 
of Energy Steve Chalk.  In his address, Chalk outlined the USG 
policies for achieving greater energy independence for the United 
States, and noted the avenues of technology research that DOE is 
pursuing.  He also highlighted the new Bilateral US-Israel energy 
research program for which A/S Karsner signed the Implementation 
Agreement during his visit. 
 
--------------------------------- 
Rethinking Israel's Energy Future 
--------------------------------- 
¶4. (SBU) On May 21 Karsner met with GOI Minister for National 
Infrastructure Binyamin Ben-Eliezer in Jerusalem. 
The Minister outlined Israel's energy constraints: little domestic 
energy sources but for a small amount of natural gas in the 
Mediterranean, and plentiful sunshine. Currently 70 percent of 
electricity is coal generated, and carbon sequestration technology 
could be done (at some cost) to make this more environmentally 
friendly.  A transition to cleaner natural gas has been started, but 
this does not diminish the country's vulnerability to imported 
energy suppliers.  The Minister said he expects more reliance on 
solar in the future, and will commit Israel to 20 percent savings on 
its energy use off a 2006 base by 2020.  He has also established a 
stretch goal of 20% of electricity from renewable energy by 2020. 
 
¶5. (SBU) Karsner thanked the Minister for GOI cooperation in 
preparing the new bilateral energy research program, and for signing 
the Memorandum of Understanding establishing that program in March 
when Ben-Eliezer visited Washington.  Karsner noted Israel's 
impressive solar technology, and encouraged Eliezer to consider more 
solar-powered generation.  With the Ministry's Director General Hezi 
Kugler, Karsner later signed an Implementation Agreement related to 
the MoU on energy research.  Karsner encouraged Kugler to be 
aggressive in the scope of their upcoming CSP solicitation to 
enhance industry interest, seeking bids for up to 2500mw of 
solar-generated power.  Because the GOI covers the risks of land 
acquisition, permits, and grid purchase price, investors would be 
willing to bear financial, commercial and technical risks and will 
be interested in participating if the scale of the opportunity is 
large enough.  Kugler accepted Karsner's offer to have NREL conduct 
a quick study of policy options for attracting large scale renewable 
energy investment to Israel.  (Note: This study is already 
underway.) 
 
-------------------------------- 
Private Sector Charging Ahead 
-------------------------------- 
¶6. (U) The DOE team visited Solel Solar Systems in Beit Shemesh. 
CEO Avi Brenmiller briefed Karsner on Solel's technology utilizing 
parabolic mirrors that concentrate solar energy onto solar thermal 
receivers containing a heat transfer fluid.  This fluid is 
circulated and heated through the receivers, and the heat is 
released to a series of heat exchangers to generate super-heated 
steam which drives a turbine to generate power.   Solel has sold 
this technology in several countries, including a commercially 
competitive plant in California.  The size of foreign market demand 
needed to merit investment in production facilities abroad was 
 
discussed, and Brenmiller did not rule out such investment in the 
US.  Solel is developing a 1 MW integrated CSP test system and is 
interested in partnering with the U.S. in the use of this system. 
The DOE delegation noted interest in potential collaboration on 
solar thermal storage and Solel promised to share ideas for 
collaboration with NREL. 
 
¶7. (SBU) Karsner and officials also met with various renewable 
energy investment firms, including Cleantech Ventures, Tamir 
Fishman, and Precede Technologies and with several companies 
including Project Better Place, Emefcy Bio-Energy Systems, CellEra, 
Bright Source, Bright View Systems, and the Israeli Electric 
Company. 
 
------------------------------- 
Academic Researchers Engaged 
------------------------------- 
¶8. (U) The DOE team visited several of Israel's leading universities 
where renewable energy research is underway. At Hebrew University's 
Faculty of Agricultural and Environmental Science they were briefed 
by Dean Eli Feinerman and Prof Sam Saguy on current research.  Prof. 
Yitzhak Hadar detailed his work using fungal enzymes to promote 
cellulosic fermentation to produce biogas.  Prof. Oded Shoseyev 
discussed research on genetic engineering to produce trees with 
enhanced biomass and bio-ethanol generating capacity. 
 
¶9. (U) At the Weizmann Institute, DOE officials met with Prof. Dan 
Yakir, Head of the Department of Environmental Sciences and Energy 
Research, who led discussions on facilitating biogas production 
through enzyme research.  Professors Ed Bayer, Avihai Danon, and Uri 
Peck participated.  Professor Michael Epstein detailed his work on 
solar energy, and described the Weizmann Institute's solar energy 
tower, that can generate up to 3 megawatts of solar power focused on 
faculty experiments.  Aside from the existing solar power technology 
of parabolic mirror enhanced thermal generation, Epstein discussed 
enhanced photovoltaic research and thermal storage technology. 
Weizmann scientists expressed great interest in continuing contact 
with DOE researchers at NREL and other labs in the US. 
 
¶10. (U) At the Technion/Israel Institute of Technology Karsner's 
delegation was briefed by Technion President Yitzhak Apeloig on his 
institution's pivotal role in Israel's infrastructure and 
engineering history.  Technion graduates are responsible for much of 
the country's constructed environment and power and water systems, 
and currently lead most Israeli high-tech research companies. 
Professors Gideon Grader and Avner Rothschild outlined Technion's 
energy research as having four components: Alternative fuels, such 
as hydrogen production and biofuels; renewable energy such as solar 
dessicant cooling and enhanced photovoltaics; energy storage through 
fuel cells, batteries, and thermal technologies; and energy 
conservation through architectural and industrial efficiency. 
Grader himself focuses on materials science engineering, 
particularly in ceramics that can enable the construction of 
ultrahigh temperature solar boiling vessels. 
 
11, (U) Technion Professor David Hasson presented work he and Rafit 
Semiat are doing on membrane desalination, which works to improve 
the technology already deployed in Israel's largest desalination 
facilities.  DOE officials later toured the world's largest 
desalination facility in Asheklon, operated by IDE Technologies, 
that produces 330,000 cubic meters of water per day.  IDE's use of a 
vacuum desalination process that produces ice may also hold good 
potential as part of a integrated thermal storage system.  IDE was 
invited to visit NREL to further explore potential collaboration and 
this visit is currently being planned. 
 
------------------------ 
Forming Ongoing Liaisons 
------------------------ 
¶12. (SBU) Many of the academic researchers the team DOE met with 
hope to continue discussions with their American counterparts, both 
university and government based.  To facilitate liaison with Israeli 
academic researchers, Karsner urged them to work together, perhaps 
forming a loose consortium among themselves.  This would avoid 
duplication of efforts and speed communication with DOE. Ultimately, 
the selection of research projects for funding under the new 
bilateral program will be aided by having a single counterpart to 
the DOE National Renewable Energy Labs. 
 
¶13. (SBU) In concluding discussions with GOI Ministry of 
Infrastructure DG Kugler, Karsner suggested that the existing 
Binational Industrial Research and Development Foundation (BIRD) 
offers a promising vehicle through which to channel part of the 
joint research funds.  During the visit Karsner had met with BIRD 
Executive Director Eitan Yudilevitch, who described the BIRD model 
for supporting projects that team Israeli and U.S. firms on 
developing and commercializing innovative technologies and enable 
 
the recapture of BIRD funds when commercialization is successful. 
This would capitalize on BIRD's established capacity for developing 
and managing bilateral projects between U.S. and Israeli companies. 
 
¶14. (U) The Department of Energy reviewed and cleared this cable. 
 
JONES