VZCZCXRO6998
RR RUEHPT
DE RUEHBN #0132 3382152
ZNR UUUUU ZZH
R 042152Z DEC 09
FM AMCONSUL MELBOURNE
TO RUEHC/SECSTATE WASHDC 5034
INFO RHEHAAA/WHITE HOUSE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHBY/AMEMBASSY CANBERRA 3675
RUEHWL/AMEMBASSY WELLINGTON 0019
RUEHDN/AMCONSUL SYDNEY 2154
RUEHPT/AMCONSUL PERTH 1636

UNCLAS MELBOURNE 000132 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SENV KGHG EIND ECON AS
SUBJECT: AUSTRALIAN BUSINESSES BULLISH ON U.S. GREEN ECONOMY 
 
Summary 
------- 
 
¶1. (SBU) Australian businesses are looking to the United States for 
investment opportunities in the green economy.  At least three 
Melbourne-based firms are considering opening or expanding U.S. 
operations to take advantage of new markets and significant stimulus 
spending in clean energy, recycling, and green buildings.  The 
President's green economy agenda appears to have captured the 
imagination of more than just the U.S. domestic market.  End 
Summary. 
 
Clean Energy 
------------ 
 
¶2. (SBU) Solar Systems, a Melbourne-based cutting edge solar energy 
firm is pulling up stakes in Australia to seek "better 
opportunities" in the United States.  The firm's Managing Director, 
Dave Holland told us in August that President Obama's green agenda 
has made the United States a more attractive target for clean energy 
investment than Australia.  Holland went on to complain about the 
difficulties of obtaining finance in Australia (an oft-heard refrain 
here; Australia does not have a sufficiently large venture capital 
market) as well as trouble obtaining promised public funding from 
both the Victorian and Federal governments.  Finance and project 
development opportunities in Texas and California, he said, eclipse 
those available in Australia.  As if to confirm Holland's finance 
gripes, Solar Systems has since gone into involuntary receivership 
(Chapter 11), though is still operating its Dallas office in hopes 
of expanding its U.S. market share.  Solar Systems is only the 
latest solar manufacturer to run into financial problems here -- in 
2008, BP Solar, then the largest manufacturer of solar technology, 
shut down its Sydney plant due to higher costs and the slow pace of 
public support for solar development. 
 
Recycling 
--------- 
 
¶3. (SBU) Australian recycling giant Visy also plans to rapidly 
expand its U.S. operations.  Visy's Chairman Anthony Pratt (who 
divides his time between Melbourne, Atlanta and New York) sees his 
company's future in the United States.  In an October 26 meeting, 
Pratt told Consul General that the President's green agenda and an 
increasing eco-awareness among the U.S. populace have combined to 
create fertile fields for Visy's biomass gas generation plants and 
recycling technologies.  Visy, which already runs a sizeable 
recycling and packaging facility in New York City as well as in 
Indiana, Georgia and Louisiana, will be looking to expand these 
operations in the coming years. 
 
Green Buildings 
--------------- 
 
¶4. (SBU) Daniel Grollo, the CEO of Australia's largest commercial 
builder Grocon, told Consul General on November 30 that he is 
examining green building opportunities in the U.S. stimulus package 
very closely.  Grocon is building Australia's first 100 percent 
carbon neutral building in Melbourne (Note: The building will offset 
not just the carbon it emits, but also all of the carbon generated 
by its construction.  For additional information see: 
http://www.pixelbuilding.com.au/. End note.)  Grollo is setting up 
operations in New York to capitalize on "undervalued" U.S. 
commercial real estate assets.  He believes Grocon can compete with 
larger U.S. developers through cutting edge green building 
technology as well as a unique focus on safety and funds 
management. 
 
Comment 
------- 
 
¶5. (SBU) All three of these companies see real results flowing from 
the President's emphasis on creating a green economy and are now 
putting their money where their mouths are.  All three executives 
expressed unsolicited reservations about doing business in China, 
indicating that they did not feel comfortable making capital 
investments there.  The United States, however, still provides 
certainty for Australian businesses looking to expand their 
operations abroad, and a focus on building a leaner and greener 
economy in the United States is having a real impact on Australian 
business investment decisions. 
 
THURSTON