Renewable Energy and Alternative Fuels Trade Mission to Europe
Germany, Hungary, Slovak Republic, Czech Republic, Poland
September 10 – 19, 2007
Mission Description
The United States Department of Commerce, International Trade Administration, U.S. Commercial Service will organize a Renewable Energy and Alternative Fuels Trade Mission to Germany, Hungary, the Slovak Republic, the Czech Republic and Poland, September 10-19, 2007. This event offers a timely and cost-effective means for U.S. firms to enter large and fast-growing markets for renewable energies equipment, technology and services. Target sectors holding high potential for U.S exporters include biomass, biofuels, waste-to-energy, hydropower, wind, geothermal, solar and clean coal. Each of the four stops in Central Europe will include a country briefing, reception for business and government contacts hosted by the U.S. Ambassador or other high-ranking embassy official, one-on-one appointments with prospective business contacts, and high-level meetings with government officials and business leaders. In Munich, Germany, the program will include a country briefing, a European Union-wide perspective on renewable energy, a reception for business and government contacts hosted by the U.S. Consulate, and one-on-one appointments with prospective business contacts. The Germany leg of this mission is optional.
Commercial Setting
The German economy is the world's third largest and, after the expansion of the EU, accounts for nearly one-fifth of European Union GDP. Germany is the United States' largest European trading partner and is the sixth largest market for U.S. exports. Among the renewable energy sources in Germany, biomass plays the most important role in the overall energy mix since biomass is used not only for power generation, but also for heating and vehicle fuel purposes. Since the raw materials exist in abundance and can be obtained, transported and stored relatively easily, the use of biomass in Germany is expected to continue to grow rapidly. Since EU accession in 2004, Hungary, the Slovak Republic and Czech Republic and Poland have experienced robust rates of economic growth, dramatically increased inflows of foreign direct investment and enhanced access to EU development funds. The need to reduce dependence on non-EU sources and the ambitious target set by the EU for renewables to comprise 20% of general energy consumption by 2020 are driving a significant demand for new equipment, technology and services. These developments have created robust business opportunities for U.S. firms operating within these sectors.
Germany
With imports of 46 kWh and exports of 66 billion kWh in 2006, Germany remains the leading energy hub in Europe. Germany’s energy supply is still based mainly on fossil resources. The finiteness of these resources and negative effects on the environment necessitate increased development of renewable energies to ensure future energy supply. Due to rising prices of fossil products, and to environmental protection measures mandated by Germany’s federal government, the use of regenerative energy in Germany has increased considerably in recent years and is expected to increase further, creating areas of opportunities for companies offering technology and know–how for this market segment. Germany’s energy industry is one of the largest investors in the country with 80 billion euros ($106.5 billion USD) to be invested in nets and power plants by the end of 2020. However, as the world’s sixth largest producer of CO-2 emissions, Germany is trying to slash its output of greenhouse gases and is planning to have renewable energy sources supply a quarter of its energy needs by 2020. Currently, renewable energy sources supply twelve percent of Germany's energy, primarily from wind, water, biomass and photovoltaics. By 2010, experts predict an increase in sales for the whole renewable energy sector of 45 billion euros ($60 billion USD) with an export share of 16 billion euros ($21.3 billion USD).
Hungary
Hungary relies heavily on oil and gas from Russia, together with one nuclear plant, for most of its energy needs. Future diversity is key, and renewable sources are a priority. With power demand increasing 2% yearly, Hungary needs another 6,300 MW of capacity over 10-15 years. The renewable portion is expected to reach 600 MW by 2020, from 170 MW now. U.S. know-how can help Hungary meet its goals.
Slovak Republic
In 2005, nuclear plants provided almost 60% of the country’s electricity. By the end of 2008, that number will decline to 30%. Almost 90% of all fossil fuels must be imported, largely from Russia. Domestic coal and natural gas contribute only 2% of present energy needs. Renewable energy sources presently account for less than 3% of the total. The government wants to increase that number to 24% by 2020, primarily through the use of renewable energy. U.S. technology is well regarded in Slovakia, creating significant business opportunities for American firms in the renewable energy sector.
Czech Republic
A net exporter of energy, the Czech Republic’s electricity generation system still relies heavily on the country’s rapidly diminishing reserves of brown coal and an aging network of coal burning plants. Nuclear energy already plays a key role, but EU targets for renewable energy have put the Czech Republic under heavy pressure to increase the share of energy from biomass, wind, solar, and hydroelectric generation. The Czech energy sector represents a particularly dynamic market for U.S. companies given strong local demand and receptiveness to American products and technologies.
Poland
Currently Poland generates less than 3% of its energy from renewable sources, whereas mandated targets require a 10.4% level by 2010. Implementation of the targets will cut greenhouse gases by 18 million tons and experts estimate new investments in renewable energy projects will total $3.27 billion in coming years. Financing for renewable energy investments will come from state and local government budgets, various domestic and multilateral environmental funds, EU structural funds and individual investors. American products and technologies are well-regarded and U.S. companies have found Poland to be a very receptive market.
Mission Goals
The goal of the Renewable Energy and Alternative Fuels Trade Mission to Central Europe is to facilitate first-hand market exposure, access to government decision makers and meetings with private-sector contacts, including potential agents, distributors, end-users and other business partners.
Mission Scenario
Participants may opt to participate in four or five stops on the mission. The first, and only optional stop, will be Munich, Germany on September 10. The four subsequent stops are Budapest, Bratislava, Prague and Warsaw. In the four non-optional stops, participants will attend country briefings, a business reception hosted by the U.S. Ambassador or other high-ranking Embassy official, and one-on-one business meetings with prospective agents, distributors, partners, and end users. In the optional Germany stop, the program will include a country briefing, a European Union-wide perspective on renewable energy, a reception for business and government contacts hosted by the U.S. Consulate, and one-on-one appointments with prospective business contacts.
Mission Timetable
Depart U.S. on Saturday, September 8 for Germany or Sunday September 9 for Budapest
(1) Participants will make their own airline reservations and purchase their own tickets.
Monday, September 10:
Optional Munich, Germany stop OR last possible day for participants to depart U.S. in order to arrive in Budapest by Tuesday, September 11.
Tuesday, September 11, Budapest:
(1) Last possible day for participants to arrive in
Budapest
(2) County/Industry Briefing
Wednesday, September 12, Budapest:
(1) Matchmaking appointments
(2) Reception
Thursday, September 13, Budapest – Bratislava:
(1) Participants depart Budapest for Bratislava by bus
(2) Participants arrive in Bratislava
(3) Country/Industry Briefing
(4) Reception at Ambassador’s Residence
Friday, September 14, Bratislava:
(1) Matchmaking appointments
Friday, September 14 - Sunday September 16, Optional:
After the conclusion of the program in Bratislava, each participant can decide on their own whether to remain in Bratislava or travel on to Prague, as long as they arrive in Prague by the evening of Sunday, September 16. Travel from Bratislava to Prague can be by either rail or air, depending on the preference of each participant. If a participant wants to travel by air, they must make their own reservation and obtain their own ticket. If a participant wants to travel by rail, CS Bratislava can assist with timetables and rail tickets, to be paid directly by each participant.
Sunday, September 16, Prague:
(1) Last possible day/evening for participants to arrive in Prague
Monday, September 17, Prague:
(1) Country/Industry Briefing
(2) Matchmaking appointments
(3) Reception
Tuesday, September 18, Prague - Warsaw
(1) Participants depart Prague for Warsaw
(2) Participants arrive in Warsaw
(3) Country/Industry Briefing
Wednesday, September 19, Warsaw
(1) Matchmaking appointments
(2) Reception at Ambassador’s Residence
Thursday, September 20: Departure for U.S. and arrival at home on the same day
For example, flights to the USA usually leave Warsaw around mid-day or late afternoon and arrive in the USA late in the afternoon or in the evening on the same day. Each participant is responsible for his/her own air reservation and ticket.
Criteria for Participation and Selection
- Relevance of a company’s business line to mission goals.
- Timeliness of company’s signed application and participation agreement (including a participation fee of $3,500 for the four-stop mission OR $4,600 for the five-stop mission that includes Munich, Germany)
- Company’s potential for business in Central Europe.
- Provision of adequate information on company’s products and/or services, and company’s primary market objectives to facilitate appropriate matching with potential business partners.
- Certification that the company meets Departmental guidelines for participation. A company’s products or services must be either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.
Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.
Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar – www.ita.doc.gov/doctm/tmcal.html – and other Internet web sites, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows.
Recruitment for the mission will begin immediately and conclude no later than July 20, 2007. The participation fee for the event will be $3,500 per company for the four-stop mission OR $4,600 for the five-stop mission that includes Germany. The participation fee does not include most meals, travel or lodging costs. Up to 10 companies will be accepted on a first-come, first-served basis, and applications received after the closing date will be considered only if space and scheduling constraints permit.
Contact Information:
Contact:
Glen Roberts, Director
U.S. Commercial Service Export Assistance Center
2100 Chester Ave., 1st Floor Suite 166,
Bakersfield, CA. 93301
(661) 637-0136, fax: (661) 637-0156