VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1283/01 2591455
ZNR UUUUU ZZH
R 151455Z SEP 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 2027
RUCNMER/MERCOSUR COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS BUENOS AIRES 001283 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ENRG SENV TRGY PREL ETRD EINV EAGR AR
SUBJECT: U.S.-Argentina Bilateral Energy Consultations on Renewable 
and Clean Energy 
 
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Summary 
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¶1.  (SBU) U.S.-Argentina binational working group on alternative 
energy and energy efficiency met September 11 in Buenos Aires to 
advance cooperation under the July 2008 U.S.-Argentina Memorandum of 
Intention (MoI) on Renewable and Clean Energy.  The GoA underscored 
its intention to advance bilateral energy cooperation and will send 
the USG concrete proposals to collaborate on wind, solar, and energy 
efficiency in anticipation of plenary bilateral talks scheduled for 
November 12 in Washington.  The USDel, which included Embassy 
Economic, Agricultural, ESTH, and Commercial officers and visiting 
WHA Energy Officer Faith Corneille, highlighted efforts to 
accelerate renewable energy deployment in the U.S. and ongoing 
regional bilateral and multilateral energy cooperation initiatives. 
Separately, Corneille delivered remarks September 9 at an Argentine 
biofuels conference, emphasizing USG biofuels developments and views 
on sustainability.  The successful Argentine private-sector 
biodiesel industry, which exports all production to the U.S. and 
Europe, is optimistic about its global competitiveness, but 
concerned about forthcoming European biofuels sustainability 
criteria and the possible expiration of the U.S. "splash and dash" 
biodiesel blending credit of $1 per gallon.  End Summary. 
 
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U.S.-GOA Advance Bilateral Energy Discussions 
--------------------------------------------- 
 
¶2. (U) On September 11, 2008, the U.S.-Argentina binational working 
group on alternative energy and energy efficiency met for the first 
time in Buenos Aires to discuss next steps under the U.S.-Argentina 
MOI to Advance Cooperation on Renewable and Clean Energy.  The MOI 
was signed during July 10, 2008 plenary bilaterals in Buenos Aires. 
Both governments expressed their desire to explore and agree on 
concrete activities under the MOI by high-level bilateral 
consultations scheduled for November 12 in Washington.  Econ 
Counselor Doug Climan, WHA Energy and Agriculture Officer Faith 
Corneille, ESTH Counselor James Perez, ESTH Officer Ted Jasik, USDA 
counselor David Mergin, Agricultural Specialist Ken Joseph, FCS 
Attache Charles Ranado, and FCS Commercial Specialist Marcelo Amden 
met with the GoA Planning Ministry's Secretariat of Energy MoI 
coordinator Juan Legisa, Secretariat of Energy's Oswaldo Bakovich, 
Secretariat of Energy's Francisco Elizondo, Secretariat of Energy's 
Alicia Baragatti, Ministry of Science and Technology's Ernesto 
Quiles, National Scientific and Research Council's (CONICET's) Jorge 
Teson, Secretariat of Agriculture's Miguel Almada, and Ministry of 
Foreign Affairs' Ambassador Rodolfo Rodriguez, Deputy of the 
Directorate for International Negotiations, Minister Jorge Luis 
Riccombeni and Minister Trambetta.  Jointly with the GOA, we issued 
a press statement available at 
http://spanish.argentina.usembassy.gov/rel411 .html 
 
¶3. (SBU) MFA Ambassador Rodolfo Rodriguez opened the meeting 
expressing condolences on this anniversary of September 11, 2001 and 
hoped this first meeting of the bilateral energy working group 
meeting would help deepen bilateral cooperation.  Legisa highlighted 
the "strong and capable" interagency GOA team at the meeting which 
he attributed to Energy Secretary Daniel Cameron's enthusiasm 
following his participation in the March 2007Washington 
International Renewable Energy Conference (WIREC) and to the GoA's 
interest in promoting "greater and better" cooperation.  Legisa 
noted that, in regional initiatives such as UNASUR or the OAS, 
energy issues have tended to become overly politicized, and he 
welcomed this meeting's focus on seeking practical, concrete 
cooperation initiatives. 
 
¶4. (SBU) In a series of presentations, representatives of the 
Secretariats of Energy and Agriculture and the Ministry of Science 
and Technology GOA presented their research and development 
priorities and efforts to promote domestic energy efficiency and 
renewable energy use, including biofuels (soy biodiesel, jatropha, 
microalgae, and cellulosic ethanol from forestry residue), hydrogen 
fuels cells.  GoA officials highlighted legislative mandates that 8% 
of electrical power be generated from non-hydro renewable energy by 
2016, and that refined fuels include a 5% ethanol (E5) and 5% 
biodiesel (B5) blend by 2010.  On biofuels, they noted that the vast 
majority of current production is exported.  To encourage local use, 
development and additional domestic employment, the GoA is offering 
the biofuels sector targeted incentives for manual harvesting 
techniques, SME participation, and investment in less developed 
areas of Argentina.  Legisa noted that the GoA is tracking the 
global food versus fuel debate, but called recent heated 
international rhetoric "exaggerated."  GoA officials expressed 
concern on the potential impact of forthcoming EU sustainability 
criteria on Argentina's biodiesel industry (para 7).  Separately, 
GoA officials highlighted recent cooperation with Cuba to install 
 
four million energy efficient lamps throughout Argentina. 
 
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US/Argentina: Current Cooperation and Next Steps 
--------------------------------------------- --- 
 
¶5. (U) Climan highlighted U.S.-Argentine energy cooperation to date, 
including Secretary Cameron's participation in WIREC; USDA Under 
Secretary Buchanan's May 2007 visit to Argentina; Argentine 
participation in an August 2007 USDA biofuels event in Minnesota, 
USG support for a Southern Cone energy conference, organized by the 
OAS in Santiago in July 2008, and the August 2008 State 
Department-funded visit of an Argentine private sector 
representative to the U.S. on a USDA Cochran/OAS biofuels program. 
Corneille reviewed U.S. energy policy priorities and efforts to 
advance renewable energy and energy efficiency in the U.S. and 
throughout the region.  She highlighted U.S.-Brazil biofuels 
cooperation, the Chile-California Partnership for the 21st Century, 
and bilateral USG biofuels cooperation with Chile, Uruguay, 
Colombia, and Peru.  Mergen reviewed ongoing USDA efforts to 
follow-up on the visit of Under Secretary Buchanan to Argentina and 
to develop bilateral cooperation on biofuels research.  Perez 
summarized recent practical examples of USG bilateral biofuels 
cooperation with Uruguay.  Ranado explained the types of support 
Embassy Buenos Aires offers to U.S. alternative energy sector 
companies who wish to explore commercial opportunities in Argentina. 
 All USG delegation members underscored strong USG interest in 
exploring how to deepen bilateral cooperation and promote business 
exchanges on renewable energy and energy efficiency. 
 
¶6. (SBU) GoA officials indicated their preference to collaborate on 
wind, solar, and energy efficiency and promised to pass to USG reps 
concrete proposals for cooperation.  Given that hydro power 
comprises nearly 95% of Argentina's renewable energy power, we do 
not believe GOA will pursue cooperation in this area.  GOA requested 
clarification on why USG will not join the International Renewable 
Energy Agency, which Corneille agreed to provide.  The GOA requested 
copies of USG bilateral and regional agreements, noting it may wish 
to join multilateral partnerships.  Finally, the USDel agreed to 
consider a DVC prior to the November 12 bilats and to provide a list 
of USG contacts for the energy working group. 
 
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Biofuels Markets Americas Conference 
------------------------------------ 
 
¶7. (U) Organized by Green Power Conferences and with over 200 
participants, Corneille attended the Biofuels Markets Americas 
conference September 9-10, 2008 in Buenos Aires.  Most participants 
represented Argentina's private biofuels industry that is almost 
exclusively producing biodiesel from soy, which is exported to 
Europe and the U.S. (and re-exported to Europe after "splashing and 
dashing" diesel into the biodiesel to take advantage of the U.S. 
blending credit of $1 per gallon or $300 per metric ton).  Argentina 
has a number of comparative advantages in biofuels production, 
including its active research and development programs, a dynamic 
and innovative agricultural sector, still expanding oil seed 
production, competitive transport and export logistics (much 
biodiesel production occurs a short distance from transportation 
hubs), heavy investment in crushing plants, and considerable 
practical experience in sustainable agriculture techniques, 
including no-till sowing techniques.  Roughly 90% of the soy under 
cultivation is not the result of deforestation. 
 
¶8. (U) A key theme of the event was biofuels sustainability, with 
many Argentine biodiesel exporters preparing for eventual EU 
sustainability criteria (mandated greenhouse gas emissions 
reductions of 45-55%, and various social and environmental 
criteria).  Corneille delivered remarks on this issue, noting USG 
global and domestic efforts to advance a global biofuels 
sustainability framework and comply with biofuels sustainability 
provisions of the U.S. Energy Independence and Security Act.  Britta 
Thompson, Member of the European Parliament, joined via phone noting 
that on September 11, 2008, her committee would vote on specific 
sustainability criteria under the EU Renewable Energy Directive. 
Argentine biodiesel producers expressed concern that an annex of the 
directive excludes biodiesel from soy. 
 
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Comment 
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¶9. (SBU) The U.S. - Argentine bilateral alternative energy working 
group was held the same day the GoA issued a strong criticism of 
alleged "political motivations" behind the Antonini Wilson trial in 
Miami (septel).  In sharp contrast to trial-related bilateral 
tensions highlighted by local media, the GOA energy team warmly 
 
welcomed the USDel and responded positively to our suggestions for 
advancing bilateral cooperation on energy.  The binational working 
group will now work to achieve concrete deliverables in advance of 
the next U.S.-Argentina high-level bilateral consultations scheduled 
for November 12, 2008 in Washington. 
 
WAYNE