Transcript Document

Reducing World Dependence
on Oil in Transportation
Professor Eugene Kandell
Head of the National Economic Council
Prime Minister’s office
Herzliya Conference
08.02.2011
Consequences of oil dependence
Strategic
7 of 9 biggest oil exporters have a non
democratic regime
Economic
Oil price increase hurts global growth
Enviromental
The source of 40% of GHG emissions is oil
 Most global oil dependence is due to transportation
2
 600 million new cars will be sold by 2020.
Lack of long term vision
 Investment in oil alternatives depends on oil price
World Energy RD&D (million US$, 2008 prices)
and oil price (annual average, 2008 prices)
25000
120
100
20000
80
15000
60
10000
40
5000
20
0
Year
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
0
TOTAL ENERGY RD&D
Oil price,
Inflation
adjusted
Source:
IEA, Israeli
institute for economic planning
Oil Substitutes for Transportation
Bio Fuels
Synthetic
Fuels
4
Engine
Technologies
Electric
Cars and
Fuel Cells
Israel has significant capabilities
 Advanced research in relevant scientific fields

Over 50 serious research groups
 Business activity and investments in the field

200 M$ already invested in 60 companies and start-ups
 Existing Industrial clusters enable establishment
of the field
5

Agriculture and BioTechnolgy

Chemistry and Chemical Engineering.

Software and Electronics

Defence industry
The National program
Goal:
Israel as a center of industry and research, a leader in
development of technologies that reduce world dependence on
oil for transportation, and their worldwide implementation
Main principles:
 Certainty: assuring continuity and stability of support for 10
years.
 Cooperation: on the international, business and academic
levels for maximum leverage of government resources and
for the focus of worldwide attention
6
 Allow private initiative to choose technological path
The National program
Partners:
Ministries of Industry and Commerce, Treasury, National
Infrastructure, Transport, Environment, Interior, Vatat and ISF.
5 year Mission:
 To double the number of Israeli companies from 50 to 100, 20
of them with significant global sales
 To double the number of researchers In Israel
 World class “Excellence centers”
 Breakthrough pilots and beta-sites
7
 Full Scale solutions
The National program
Designated Program Manager,
International Cooperation
Beta Site Project Funding
One Stop Shop for Companies
Venture Capital Co-Investment and incentives
Excellence Centers,
Grants, Certainty
Basic Research
8
Industrial R&D
Pilot
Scale Up
Thank you