• Published 01:49 19.09.10
  • Latest update 01:49 19.09.10

Israel bids to end global oil dependency by 2020

Government plan, to be reviewed Sunday, will make Israel a global center for alternative energy technology.

By Avi Bar-Eli

An interministerial committee charged with finding ways of turning Israel into an international hub for technology to reduce global oil consumption will present its findings to the cabinet today.

The government plans to invest NIS 2 billion in the decade-long program from 2011 to 2020, alongside another estimated NIS 1.8 billion investment by the private sector.

oil rig - AP - Sept 18 2010

Oil rig.

Photo by: AP

The plan calls for the appointment of a project manager on behalf of the Prime Minister's Office, backing for private initiatives, a bigger budget for research and development and international cooperation. The committee is headed by Prof. Eugene Kandel, head of the National Economic Council; he submitted the report to Prime Minister Benjamin Netanyahu last week. The cabinet is scheduled to discuss it today.

In February, the ministers decided that reducing global oil consumption should be a top national goal because it serves Israel's strategic and environmental interests and could be quite lucrative as well. While Israel is only a minuscule player in the global commodities market, the ministers envisioned the country becoming a global center for technologies that decrease oil consumption for transportation by boosting initiatives in these fields.

The committee listed 60 Israeli companies that seek to develop oil alternatives, most of which are start-ups in their first stages of development. Through interviews with entrepreneurs at 35 of those companies, the committee concluded that "even today Israel has an industrial and knowledge base that puts it at the forefront of countries developing oil alternatives."

However, many of these companies are having trouble getting past the development stage and seeing their technologies through to commercial implementation due to a lack of investors. Also, implementing these kinds of technologies demands a significant investment in physical infrastructure before they can be marketable - about $20 million per company on average.

Within the next three years, these companies will need an investment of $270 million, the committee found.

In addition, the companies have trouble getting through the regulation necessary to run pilots, the committee found, because "transportation is a relatively traditional field." Transportation companies tend to adopt technology only once it has been tested widely.

Therefore the committee recommends setting up administrative and regulatory infrastructure for the program, which would include an interministerial steering committee headed by Kandel. The program's director, to be appointed through a tender process, would have a panel of experts on regulation and transportation. The experts would help determine which companies deserved government backing.

The Prime Minister's Office has an annual budget of NIS 146 million for staffing the project.

To promote such technologies internationally, the plan calls for an annual international conference at an expense of NIS 4.2 million.

The committee also recommends setting up two funds for investing in this technology. The management and the money for the funds would likely be set up through tenders. The committee expects the funds to invest NIS 2.4 billion over 10 years and wants to see them go live by 2011.

The committee would like to offer tax benefits to encourage investment. The Tax Authority objects to this.

Another objection comes from the Infrastructure Ministry, which seeks to manage the project itself and objects to having it managed from the Prime Minister's Office, which is responsible for the country's energy policy. It also objects to the suggestion that it fund part of the project.

  • Print Page
  • Send to a friend
  • Share
  • Text Size +|-
 
 
TalkBacks

Why Facebook Connect?

Comment on Haaretz.com articles with your Facebook login, and share your thoughts on your own wall.

Add a comment

Add your reply

  • 27. 0 0
    will the leftie environmentalists finally love us????
    • Lemmings hotline
    • 20.09.10
    • 06:47

    NO. they will hate us.

  • 26. 0 0
    And why isn't the U.S. doing the same thing?
    • Larry
    • 20.09.10
    • 04:34

    There are billions of dollars to bail out banks and financial institutions who ripped off hard working Americans and the government expects them to behave differently this time with OUR money? One would that that Obama is smart enough to introduce some sort of alternative energy initiative like Israel is doing with some of that money and let the market forces go to work. Or isn't Obama interested in making the U.S. less reliant on foreign sources of oil, many of whom are anti-U.S., Israel, and the West in general? Think about this, especially you people who voted for Obama and had so much hope (expectations?) that he would take the U.S. to a higher level rather than what has happened thus far during his presidency. Review the news clips about Obama which discussed whom he often associated himself with. The man appears to be a sociopath as are many politicians, especially career politicians. Actions speak louder than words. Many of us would like to see Obama propose and help get approved a major alternative energy initiative NOW (not during the next campaign) with our tax dollars that will hopefully lead to prosperity for the U.S., Israel, and other peace-loving nations on Earth.

  • 25. 0 0
    For all those counting on Arab irrelevance after the rule of OIL
    • Mark B. / Amsterdam-EU
    • 19.09.10
    • 23:51

    There is a rat. History shows that countries depending on easy money from natural resources have the smallest to none progress when it comes to technological innovation, dynamic economy, in short: developement. All acknowledged economic miracles are done by countries without natural resources after 1945: Germany, Japan, South-Korea, Taiwan, Singapore as main examples. Arabs are not capable of that? Well, they are in the same family as Jews (nephews), so there might be a sleeping gen now waiting to be awakened. Just kidding of course...

  • 24. 0 0
    Only lip service
    • Chaim Boermeester
    • 19.09.10
    • 22:42

    This is going to be another Tel Aviv underground, Dead Sea canal, five day school week or Lavi project. Millions are going to be spent on it, and nothing will come from it. And if, maybe, by mistake something comes from it, only the richest in our country will see the return, not the tax payers.

  • 23. 0 0
    Always nice to see...
    • Eldar
    • 19.09.10
    • 19:50

    ... a tiny shimmer of light eminating from an otherwise dark administration.

  • 22. 0 0
    Isn't Iran doing the same?
    • American Citizen
    • 19.09.10
    • 19:40

    Lots of countries are developing alternatives to fossil fuels. And nuclear energy is one of them. France is well over 70% dependent on nuclear energy for its domestic needs. Besides, it's good for everyone to pursue alternative forms of energy. Imagine no more wars over oil and peace through alternatives.

  • 21. 0 0
    A STEP IN THE RIGHT DIRECTION
    • YAW ANANE
    • 19.09.10
    • 19:29

    WHEN ISRAEL DEVELOPS SOMETHING IT BENEFITS THE WHOLE WORLD INCLUDING ITS ENEMIES.

  • 20. 0 0
  • 19. 0 0
    for the future
    • de Navarre et Colbert
    • 19.09.10
    • 17:45

    To invest in alternative energy is an investment for the future generations and the planet. Without alternative energy we destroy the ecology of the planet. If Israel will develop in this sector it will not only be independant from the oil countries it can make a lot of money in the next future and when the oilproduction will be finished. One should make all for this technolocical progress for the independance of the country and the people and the peace. House of King David, family of Ibn Sina (Avicenna) Maimonides, Hans Mayer

  • 18. 0 0
    Great, both for the environment as well as for Israelis.
    • Fortuna Benmayor
    • 19.09.10
    • 17:12

    Clean alternatives, which sent Arab and Iranian oil to hell, are already known: For example hydrogen, which is currently working already in Germany. The main obstacle is not technological but political, and the roots can be seen in the OPEC cartel as well as the American oil cartels and policies. A theological footnote: Why did the Almighty grant davka the Arab states and Iran with so much oil, thus so much power and money?

  • 17. 0 0
  • 16. 0 0
    That's what I call defense investment!
    • Sam
    • 19.09.10
    • 15:30

    Getting the world off the oil is extremely important for two reasons: environment and security.

  • 15. 0 0
    meaning
    • Jair
    • 19.09.10
    • 15:13

    Getting rid of oil-dependency in 10 years? Easy, after all, already ~5% of the products in our 'civilized' economies are not oil-dependent. (Sorry, it's no joking matter, given that we have to say farewell to coal as well, it roughly means healing the cursed energy- course of the last 200 years, the most transformative of human history by far, within a fraction of that time.)

  • 14. 0 0
    Water, Water No where ...
    • Moderate Jersey Jew
    • 19.09.10
    • 15:00

    Copying and leveraging China's well-known leadership and progress regarding the development of Alternative Clean Energies is very smart. However, let's not be distracted by a more critical, life-sustaining resource that is being wasted away, even traded away ... water! Routine lowering of the Kinneret's "Red Line" and water intensive industries & distant Settlements is not sustainable, nor is West bank occupation and unnecessary Arab conflict.

  • 13. 0 0
    This is Real Strategic Reasoning
    • Joseph
    • 19.09.10
    • 14:38

    1. Israel can be embargoed. Energy independence is militarily critical. 2. Energy expenses are a drain on the economy. A shekel spent in Israel on the development of energy alternatives will be re-cycled 2-3 times by the workers who will then purchase goods and services in the country. A shekel spent on foreign energy, benefits only that country. 3. Most energy is controlled by countries hostile to Israel. Even if Israel purchases from a "friendly" country, the overall demand benefits the enemies. 4. Most alternative forms of energy are cleaner and the health benefits are obvious 5. This can be a major export industry. So my only question, why invest only 4 billio?

    • 0 0
      Because the rest of Israel's tiny budget has to be invested in short-term threats, Joseph.
      • Fortuna Benmayor
      • 19.09.10
      • 17:18

      Not a day passes without Israel being threatened with thing such as the Russian sale of weapons to Syria, the smuggling of yet more modern missiles to Hezbollah by Iran, all imaginable assymetrical threats from Gaza, Lebanon, and what have you, and -last but not least- the genocidal threats by Iran and its military nuclear program. Israel is not in a position to think in long term as if it were quiet Finland. The fact it does invest 4 billion (2 state funded, 2 private funded) is amazingly daring and visionary, given the formidable enemies Israel has all around every day, and all it has in its plate to deal with.

  • 12. 0 0
    I hope it can happen
    • David LG
    • 19.09.10
    • 14:35

    That would be wonderful. A world not dependent on Arab oil. This would diminish the Arabs' influence against Israel.

  • 11. 0 0
    This is Real Strategic Reasoning
    • Joseph
    • 19.09.10
    • 14:32

    1.

  • 10. 0 0
    nothing could be better
    • Yohai
    • 19.09.10
    • 14:07

    I applaud this government policy, just as I regretted when solar energy was no longer subsidized.and Israel is still the world pioneer in rooftop solar water heaters

  • 9. 0 0
    Peace
    • Uri
    • 19.09.10
    • 13:29

    Russia selling arms to Syria, Iran going muke capable and the Saudis are quietly finance terror, is this not all to stop Israel from inventing new ways of life that would economically hurt russia and many Arab oil producing nations

  • 8. 0 0
    This is a dangerous development
    • Vladimir Hinich
    • 19.09.10
    • 13:02

    It seems that the Government decided to spend lucrative sums of money on global projects (purchase of useless warplanes, alternative energies etc) --- taking example from Obama government. As usual, this will bring huge waste of money and more corruption. Let big international companies invest in our startups! They know better what is worth and what is not.

  • 7. 0 0
    This is the way to "Peace" and an end to international isolation
    • Zionoid Entitiy
    • 19.09.10
    • 11:51

    When Israel finds alternative to gas and is at the forefront of medical breakthroughs we will have "peace". The Arab world has two exports: oil and terrorism. Something tells me that if you eliminate oil the world will no longer indulge them in their insanity.

  • 6. 0 0
    Start-Up Nation: The Story of Israels Economic MiracleDiscover the story behind Israels economic miracle, learn about the 7.1 million people countrey that produces more start-up companies than Japan, China, ...
    • PETER SM
    • 19.09.10
    • 11:47

    http://www.startupnationbook.com/ "START-UP NATION addresses the trillion dollar question: How is it that Israel - a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources— produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada, and the UK? How is it that Israel has, per person, attracted over twice as much venture capital investment as the US and thirty times more than Europe? Israel has more companies on the tech-oriented NASDAQ stock exchange than any country outside the US – more than all of Europe, India, and China combined. Nor is Israeli innovation limited to computers, security, and communications; the Jewish state leads the world in medical device patents, and is a strong global player in cleantech and biotech. Drawing on examples from the country’s foremost inventors and investors, foreign policy insiders Dan Senor and Saul Singer describe how the country’s adversity-driven culture, flattened hierarchies, and government policies create a society that uniquely combines both innovative and entrepreneurial intensity. As the authors argue, Israel is not just a country, but a comprehensive state of mind. Where Americans emphasize decorum and exhaustive prep, Israelis put chutzpah over charm. "When an Israeli man wants to date a woman, he asks her out that night. When an Israeli entrepreneur has a business idea, he will start it that week,” as one analyst puts it. At the geopolitical level, Senor and Singer dig in deeper to show why Israel's policies on immigration, R&D, and military service have been key factors in the country's rise. “No college experience disciplines you to think like [the military does], with high stakes and intense pressure,” one veteran notes, explaining how state service preps Israelis to communicate, to forge teams, and to improvise at work. At a time when innovation has become the key to driving global economic recovery and growth, the authors show the myriad ways the world’s most dynamic “start-up nation” can inform America’s successes. As START-UP NATION shows, there are lessons in Israel's example that apply not only to other nations, but also to individuals seeking to build a thriving organization. As this country reboots its can-do spirit, there’s never been a better time to look at a remarkable and resilient nation for some impressive, surprising clues"

  • 5. 0 0
    Arab oil regimes and Iran are history
    • The Prophet
    • 19.09.10
    • 11:13

    Can't wait for the Greenies to put the Arabs and Iran out of business. Oh the irony!

  • 4. 0 0
    • 0 0
      Childish Response
      • N-tropy
      • 19.09.10
      • 15:46

      Really now, Bobby Boy, this is a childish response. Whatever Israel develops will hopefully be shared with the world, in line with Jewish values cocnerning the common good of humanity. You sound like you hope any advances are hoarded and used as perhaps blackmail against others. How does such an attitude contribute any meaningful change to the current political situation Israel finds itself in. A change of thinking on your part might be useful.

  • 3. 0 0
    Israel Creates
    • New Black Gold
    • 19.09.10
    • 10:34

    Once Israel creates an alternative, then all the world might turn their backs on you know who. But, don't hold your breath,old habits die hard.

  • 2. 0 0
  • 1. 0 0
    Great!
    • Sam
    • 19.09.10
    • 10:19

    That's what I like to hear. Hopefully this goes through and that all nations follow suit and oil consumption becomes a thing of the past. I can't think of any better situation in the Middle East and for that matter the world!

    • 0 0
      kango
      • nassim
      • 20.09.10
      • 03:09

      wake up and smell some coffee , do you really believe that by 2020 the world will not need the arab oil comon be realistic