Jiis oil-free initiative 30.10.2011-1
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Transcript of Jiis oil-free initiative 30.10.2011-1
Reducing World Reducing World Dependence on Oil in Dependence on Oil in
TransportationTransportation
The Israeli “OIL-FREE” Initiative The Israeli “OIL-FREE” Initiative
Sagi Dagan, Interim ManagerSagi Dagan, Interim Manager
30.10.201130.10.2011
The National Economic The National Economic CouncilCouncilPrime Minister’s OfficePrime Minister’s Office
Increasing Global Oil Dependence
Global oil dependence is due to transportation Around 1 billion new cars will be sold by 2020
Increasing dependence of China and India on oil from the
Persian Gulf
2
Asian oil demand VS. Middle East surplus
ME exports
Asia imports
2015
Source: lloyds 6/10
Consequences of Oil Dependence
3
Lack of long term vision
Investment in alternatives to oil depends on oil
price
Source: IEA, Israeli institute for economic planning4
Oil Alternatives in Transportation Main Fields of Technologies:
Main principles:
Focus & Consistency: a 10 year targeted plan
Partnerships with Leading Companies, Governments & NGOs
Private Initiatives & Innovation: Let Developers and Industry choose technological paths
Method of Impact:
The Israeli “Oil-Free” Initiative
7
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
8
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How to create local innovation ?
1. Understand the need determination
Needs are determined globally (information barrier)
2. Support innovation of solutions
The global need is for “innovative solution” of problems
Israeli R&D has a “technology bias”
3. Create local demand for innovation
Local demand is small (local scale-up is small)
Innovative technologies are less bankable (scale-up is
“biased”)
“Initial markets” for Israeli companies (learning by doing)
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The Israeli “Oil-Free” Initiative
Research Centers & Grants
Venture Capital Co-Investment
Supporting Regulation for Pilots
Local Regulation & Incentives
Management Under the Prime Minister’s Office
International Cooperation & Activities
Government Budget of over $ 400 Mln on R&D for 10
years
Tax Incentives of over $ 5 Bln for Electric and Hybrid
Vehicles *
*Assessment with full usage
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International Cooperation
The Goals:
1.Understanding of global needs
2.Promote innovation of solutions
3.Become part of the global network
The Method:
1.Bring problems to Israel
2.Support joint development and demonstration of
solutions
3.Promote (and brand) Israel as a source of solutions
Local Market Policies and Demand
Oil-based fuels & vehicles taxes:
90% tax on gasoline, 90% tax on gasoline-based cars
Electric Vehicles:
About 30,000$ for Electric Vehicle and 15,000$ for Hybrid
Vehicle
Experiments with new technologies:
Breakthrough pilots & beta-sites of innovative solutions
Full scale solutions for adaptation of oil alternatives
Taking advantage of natural gas:
Methanol
CNG, LNG
Gas-to-Gasoline Fuels12
Thank you