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Jiis oil-free initiative 30.10.2011-1


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Jiis oil-free initiative 30.10.2011-1

  1. 1. Reducing World Dependence on Oil in Transportation The Israeli “OIL-FREE” Initiative Sagi Dagan, Interim Manager 30.10.2011 The National Economic Council Prime Minister’s Office
  2. 2. <ul><li>Global oil dependence is due to transportation </li></ul><ul><ul><li>Around 1 billion new cars will be sold by 2020 </li></ul></ul><ul><li>Increasing dependence of China and India on oil from the Persian Gulf </li></ul>Increasing Global Oil Dependence Asian oil demand VS. Middle East surplus ME exports Asia imports 2015 Source: lloyds 6/10
  3. 3. Consequences of Oil Dependence
  4. 4. Lack of long term vision Investment in alternatives to oil depends on oil price Source: IEA, Israeli institute for economic planning
  5. 5. Oil Alternatives in Transportation <ul><li>Main Fields of Technologies: </li></ul>
  6. 6. <ul><li>Academia Research in relevant scientific fields </li></ul><ul><ul><li>Over 50 serious research groups </li></ul></ul><ul><li>Private Innovation and Investments in the field </li></ul><ul><ul><li>Over 200 M$ already invested in 70 companies and start-ups in the last years, and around 1 B$ in Infrastructure Companies * </li></ul></ul><ul><li>Relevant Israeli Industries </li></ul><ul><li>Agriculture and Agro-Industry </li></ul><ul><li>Bio-Technology </li></ul><ul><li>Chemistry </li></ul><ul><li>Software, Electronics & Defense </li></ul><ul><li>Automotive Suppliers </li></ul>Israel has significant capabilities Source: Israeli institute for economic planning
  7. 7. <ul><li>Main principles: </li></ul><ul><li>Focus & Consistency: a 10 year targeted plan </li></ul><ul><li>Partnerships with Leading Companies, Governments & NGOs </li></ul><ul><li>Private Initiatives & Innovation: Let Developers and Industry choose technological paths </li></ul><ul><li>Method of Impact: </li></ul>The Israeli “Oil-Free” Initiative
  8. 8. The Israeli “Oil-Free” Initiative To become a global leader in energy R&D, and a catalyst for worldwide implementation of “Oil Alternatives”: Increase global demand for innovation Create local supply of innovation
  9. 9. How to create local innovation ? <ul><li>Understand the need determination </li></ul><ul><ul><li>Needs are determined globally (information barrier) </li></ul></ul><ul><li>Support innovation of solutions </li></ul><ul><ul><li>The global need is for “innovative solution” of problems </li></ul></ul><ul><ul><li>Israeli R&D has a “technology bias” </li></ul></ul><ul><li>Create local demand for innovation </li></ul><ul><ul><li>Local demand is small (local scale-up is small) </li></ul></ul><ul><ul><li>Innovative technologies are less bankable (scale-up is “biased”) </li></ul></ul><ul><ul><li>“ Initial markets” for Israeli companies (learning by doing) </li></ul></ul>
  10. 10. The Israeli “Oil-Free” Initiative <ul><li>Government Budget of over $ 400 Mln on R&D for 10 years </li></ul><ul><li>Tax Incentives of over $ 5 Bln for Electric and Hybrid Vehicles * </li></ul>* Assessment with full usage Research Centers & Grants Venture Capital Co-Investment Supporting Regulation for Pilots Local Regulation & Incentives Management Under the Prime Minister’s Office International Cooperation & Activities
  11. 11. International Cooperation <ul><li>The Goals: </li></ul><ul><li>Understanding of global needs </li></ul><ul><li>Promote innovation of solutions </li></ul><ul><li>Become part of the global network </li></ul><ul><li>The Method: </li></ul><ul><li>Bring problems to Israel </li></ul><ul><li>Support joint development and demonstration of solutions </li></ul><ul><li>Promote (and brand) Israel as a source of solutions </li></ul>
  12. 12. Local Market Policies and Demand <ul><li>Oil-based fuels & vehicles taxes: </li></ul><ul><ul><li>90% tax on gasoline, 90% tax on gasoline-based cars </li></ul></ul><ul><li>Electric Vehicles: </li></ul><ul><ul><li>About 30,000$ for Electric Vehicle and 15,000$ for Hybrid Vehicle </li></ul></ul><ul><li>Experiments with new technologies: </li></ul><ul><ul><li>Breakthrough pilots & beta-sites of innovative solutions </li></ul></ul><ul><ul><li>Full scale solutions for adaptation of oil alternatives </li></ul></ul><ul><li>Taking advantage of natural gas: </li></ul><ul><ul><li>Methanol </li></ul></ul><ul><ul><li>CNG, LNG </li></ul></ul><ul><ul><li>Gas-to-Gasoline Fuels </li></ul></ul>
  13. 13. Thank you
  14. 14. Israeli Companies and Clusters
  15. 15. Layer Classification of Companies Global Companies (Scale-up & Projects) Core Technologies Companies Companies with Relevant Technologies
  16. 16. Clusters of Israeli Companies * Powertrain – the group of components that generate and deliver power Fuel Production Based on the IEP Database, 8.2011 ; Further information (Oil Alternatives) [email_address] Feedstock Field Crops Other Algae 10 8 Catalysts Turnkey Projects Other 17 10 2 Vehicles Powertrain (Generate & Deliver power to wheels) Batteries, Fuel-cells Other (efficiency related) 7 8 11 Electric (Smart Grid, Charging & Recycling) Gaseous & Liquid Fuels (Storage & Distribution) Supporting Infrastructure 5 4 Core-Technology Companies