U.S.-Israel Energy Cooperation Act launches at Eilat Energy Conference

The Unites States – Israel Energy Cooperation Act, an international collaboration aimed at developing renewable energy technologies to reduce the world's oil dependence, officially launched during the recent Eilat-Eilot International Renewable Energy Conference.

The Cooperation Act, which will fund eligible joint ventures between U.S. and Israeli businesses, has already allocated $2 million for 2009 ($1 million from each country), with a significant increase expected in future years. The grant program is targeted at biofuel, solar thermal, and electric vehicle technologies.

"Israel is well-known in the world as a technology innovator. The concentration of scientific innovation in the country is impressive," said Jonathan Shrier, Assistant Secretary, Office of Policy and International Affairs, U.S. Department of Energy. "This cooperation between the United States and Israel is unique in that we have a partner who brings a lot to the table."

Two projects, run by Seambiotic and Better Place, have already received approval.

Seambiotic is developing technology to utilize flue gas from coal burning power stations for algae cultivation. The company aims to grow and process marine microalgae using an ecologically-based environmental system to reduce air pollution and global warming.

Better Place is a venture-backed company aiming to reduce global dependency on oil through the creation of nationwide electric vehicle networks.

The U.S. Department of Energy and Israel's Ministry of National Infrastructures have agreed that a researcher exchange and conference circuit are two important elements of their collaboration. Two conferences in the U.S. and two in Israel will take place annually. The annual conference in Sde Boker, Israel, will focus on the technological advancements in the Renewable Energy industry while the annual Eilat-Eilot conference will serve as a platform for industry-ready technologies to exhibit and market their offerings. In addition, researchers from Israel will spend significant time working in the U.S. market, while researchers from the U.S. will do the same in Israel.

Other announcements made at the Eilat Energy Conference include the launch of the Timna Renewable Energy Park, the centerpiece of the Eilat-Eilot region's efforts to turn Southern Israel into the "Silicon Valley" of renewable energy, and the AORA solar thermal plant in Kibbutz Samar, the world's first commercial hybrid solar gas-turbine power plant.

"The developments presented at the Eilat-Eilot Conference demonstrate the region's leadership in the renewable energy industry," Said Shlomo Wald, Chief Scientist, Ministry of National Infrastructures. "We are taking action to find sustainable solutions to Israel’s and the world's energy crisis, and we hope others see Israel as a major contributor."

For perspectives on the Eilat Energy Conference, check out these blog posts by Gil Dibner, Principal at Genesis Partners, and Rabbi Julian Sinclair of the Jewish Climate Initiative.

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AORA Solar raises $5m for solar thermal technology

AORA Solar, a Yavne, Israel-based developer of solar thermal technology, announced today it has closed a $5 million Series A funding round led by EZKlein Partners, EDIG Construction, and L&Q Solar, a group of international solar energy investors.

Aora, formerly known as EDIG Solar, will use the funds to commission a commercial hybrid solar thermal gas-turbine power station, expected to begin operations by the end of March in Kibbutz Samar in Israel's Arava region. Work has already started on the half-acre site, which is expected to have the capacity to produce 100 kilowatts of electricity and 170 kilowatts of heat, said Shimon Klein, managing partner of EZKlein, as reported by Cleantech Group.

Funds will also be used to develop manufacturing capabilities and market expansion and to further R&D efforts.

"We believe that Aora's technology will be a ‘game-changer' in the solar thermal energy sector as it will seize market share from the companies which propose to build giant, remotely located solar thermal power plants," said Shimon Klein.

COO Yuval Susskind told Cleantech Group that the company is targeting an untapped market that's less impacted by the current credit crunch than massive installations, such as those planned by BrightSource Energy.

"The solar industry is segmented into two themes: there's the photovoltaics that you put on homes, and on the other hand there are the huge solar companies out in the desert," Susskind said. "In the middle there's nobody working on providing 100 kilowatts to 5 megawatts of solar thermal and doing it close to people's homes."

AORA's system consists of a field of mirrors that track the sun, focusing sunlight onto a proprietary 30-meter high tower that contains a solar receiver that heats air to 1,000 degrees Celsius and water to 80 degrees Celsius. The heated air is used to run a standard 100-kW gas turbine engine. The electricity and heated water can then be sold to utilities or industrial clients.

The plants are expected to run 24 hours a day, using the hybrid gas turbines to generate power during the night or inclement weather. The turbines can operate on a variety of fossil fuels and biofuels, including diesel, gasoline, natural gas and biodiesel.

AORA plans to use part of the new capital to further R&D and start its manufacturing plant for the power conversion unit and turbine in Israel. Other components of the plant would be off-the-shelf products, Klein said. In six months or so, AORA plans to seek $10 million to $50 million in additional funding to scale the manufacturing and operations, Susskind said.

AORA plans to derive revenue from selling the proprietary components and partnering with local companies to get the solar projects built around the globe. The company has completed a pilot unit in Nanjing, China, as reported by Cleantech Investing in Israel in this post last year.

AORA recently changed its name from EDIG Solar. Founded last year, the company is based on technology developed by Prof. Jacob Karni, director of the Center for Energy Research at the Weizmann Institute in Rehovot, Israel.

Susskind said he has ignored calls to move the business to Silicon Valley, at least while the business is at its early stage with just six employees.

"We're here because the climate is good for solar technology, and a lot of academic knowledge is being developed in solar," he said. "Being here right now is the best place to be for this stage of our company. All the brightest minds are here."

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Israel sets renewable energy target of 10%

Israel's government this week set a target of producing 10 percent of the country's electricity from renewable energy sources by 2020.

The decision was made by the socio-economic cabinet, headed by Finance Minister Roni Bar-On. The panel also set an interim target of 5 percent by 2014.

The Negev and Arava regions will become "national preference" regions for renewable energy, according to the plan put forward by Minister of National Infrastructure Binyamin Ben-Eliezer. Ben-Eliezer's plan calls for the construction of 10 solar power stations in the Negev and Arava between 2010-2020.

Israel has already initiated a process of building solar thermal and photovoltaic power plants at Ashalim, in the Negev desert, that are expected to be operational by 2012.

"Promoting the generation of renewable energy will not only lead to a reduction in the dependency on fossil fuels and the promotion of environmental values but advancing this industry in the south will lead to the development of the periphery in the south," Bar-On said in a statement.

Israel currently produces only 1% of its electricity from renewable sources, while 69% is produced from coal, 23% from natural gas and 7% from diesel fuel or fuel oil, according a report in YNet News.

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Arava Power solar project approved for Negev kibbutz

Israel's Public Utilities Authority (Electricity) has approved the application of Arava Power Company for a license to build a 4.9-megawatt solar power plant at an 20-acre site at Kibbutz Ketura in the Negev. The project will cost NIS 100 million ($26 million), according to a report in Globes, and will use both photovoltaic (PV) and solar thermal technologies.

The Public Utilities Authority plenum approved the conditional license for Arava Power to produce electricity, and sent it to Minister of National Infrastructures Benjamin Ben-Eliezer.

"This is an historic day for renewable energy in Israel," Arava Power Company president Yosef Abramowitz said in a statement. "For the first time, a large solar project is being launched that will be connected to the national grid, with many more megawatts on the way in the coming years. The Public Utility Authority is making a reality Ben-Eliezer's dramatic decision to produce thousands of megawatts of electricity from renewable sources by 2020."

The first solar installation of 100 kilowatts will be built by Edig Solar, according to the Jerusalem Post. Edig Solar uses solar thermal technology developed at the Weizmann Institute of Science in Rehovot. The plant is expected to become operational in March.

Arava Power has signed cooperation agreements with 15 kibbutzim, including Ketura and Yotvata, that own land available sufficient for the production of up to 500 megawatts of electricity at photovoltaic farms. The company predicts that a total of over 20 kibbutzim will join the venture this year.

Kibbutz Ketura owns 40% of Arava Power, and a group of US investors, led by company president Yossi Abramowitz, own the rest. Arava Power plans on announcing its brand-name institutional investors by February 1st, 2009.

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US & Israel to launch energy cooperation agreement at Eilat Energy Conference

The Eilat-Eilot International Renewable Energy Conference announced that the US-Israel Energy Cooperation Act, passed last year by the U.S. Congress, is expected to launch at the upcoming Eilat-Eilot energy conference, to be held from February 17-19, 2009, in Eilat, Israel.

The cooperation act will fund eligible joint ventures between U.S. and Israeli businesses, as well as establish the International Energy Advisory Board. Hezi Kugler, Director General of the Ministry of National Infrastructures will be leading the delegation of National Infrastructure representatives who will be in attendance at the conference.

“The Ministry of National Infrastructures views with high import the development of the Eilat-Eilot Region as a center of renewable energy solutions, and we not only fully support them in this pursuit, but we ourselves are very involved in advancing their initiatives,” Kugler said. “The conference is an important step towards developing the alternative energy capabilities of this region, and will certainly push us forward in becoming an alternative energy world leader.”

Timna Renewable Energy Park

The conference will also feature the unveiling of plans for the Timna Renewable Energy Park, the centerpiece of the Eilat-Eilot region’s efforts to turn Southern Israel into the “Silicon Valley” of renewable energy. It will feature technologies from companies around the world, with planned projects to include a combined wind/solar "farm"; a solar thermal power plant; a solarized turbine pilot plant and the production of biogas from municipal waste.

"The Arava is home to intense sun and a pioneering spirit, which are the necessary ingredients for creating a renewable energy revolution in the State of Israel", said Yosef I. Abramowitz, president of the Arava Power Company, a leading solar developer.

Leading Solar Power Companies

Participating Israeli solar companies, including the Arava Power Company (APC), Solar Power Israel and Sunday Solar Energy, intend on using the conference to launch their next phases of growth. Recently, APC announced an agreement to utilize kibbutz land in the Arava and the Negev for solar fields generating at least 500 MW, and eventually one gigawatt (GW) or more, while energy integrator Sunday Solar Energy announced a NIS 500 million ($133 million USD) investment in photovoltaic solar arrays for kibbutzim across Israel. The investment is expected to be made across the country during the next two years.

The conference will also feature international firms such as the Google-backed eSolar, the German company Concentrix and SunPower, one of the world’s largest solar power technologies companies.

Conference sponsors include Brightsource Energy, Chromagen, Granite HaCarmel and Erdinast, Ben Nathan & Co. Advocates.

Solar Roundup

What follows is a selection of recent stories and links related to the solar industry in Israel.

Arava planning $2.5 billion solar power station

An international project management firm recently signed a memorandum of understanding for construction of a $2.5 billion solar power station in the Eilot Region in the Arava desert. The project, which is expected to develop over a five-year period, involves installation of photovoltaic (PV) panels that will eventually supply up to 500 megawatts of electricity. The agreement was signed by the Arava Power Company of Kibbutz Ketura located in the southern Arava.

SolarPower raises $1.1m

Photovoltaic energy system integration company SolarPower Israel has raised $1.1 million at a company value of a few million dollars from Precede Technologies and Rosenram Development Ltd. The company plans to use the funding to expand its business in Israel and internationally.

SolarPower co-CEOs Avinoam Levy and Alon Tamari founded the company in 2003. The company anticipates rapid growth in Israel's photovoltaic energy market following an update to the Electricity Regulations to allow the government to buy electricity generated by solar energy systems installed at businesses, commercial enterprises, and private homes at nearly four times the rate of electricity generated by usual means.

IEC wants to bid on Negev solar plant

Israel Electric Corporation (IEC) is seeking to participate in the tender for the construction and operation of the solar power plant to be built at Ashalim in the Negev. IEC wants to be a sub-contractor, providing planning, management, and construction services for one of the consortia that will participate in the tender. IEC has begun negotiations to this end with Solel Solar Systems Ltd..

Global map of cleantech startups includes five Israel-related companies

Earth2Tech, a web site that provides cleantech news and analysis, has posted a map of 101 cleantech startups around the world, with useful information (investors, technology, etc.) broken out for each company.

No fewer than five Israel-related companies are on the list, including water disinfection company Atlantium Technologies; photovoltaic developer Pythagoras Solar; fuel-cell maker CellEra; electric car infrastructure developer Project Better Place; and biofuel company GreenFuel Technologies.

Project Better Place and GreenFuel Technologies are based in the U.S., but both companies were founded by Israelis and are engaged in R&D in Israel.

Project Better Place was founded by Shai Agassi and the company announced that it will roll out the first nationwide electric vehicle recharge grid in Israel by 2011.

GreenFuel Technologies was founded by Israeli chemical engineer Isaac Berzin during his postdoctoral studies at MIT in Boston. The company is developing an innovative process to recycle carbon dioxide or smokestack emissions to produce biofuels and feed. GreenFuel is collaborating with AlgaTech of Kibbutz Ketura in the Arava to make the process cost effective.

This is an impressive showing by Israel's growing cleantech cluster, especially considering that only two companies in all of Europe were included in the Earth2Tech list.

Renewable energy park to be built in Arava Valley

The Jerusalem Post reports that a renewable energy park is to be established in Kibbutz Ketura, located 50km north of Eilat in the Arava Valley. The park will be used for research, education and tourism. Believed to be the first of its kind, the park for renewable energy and energy saving is being established at the initiative of the Arava Institute for Environmental Studies and the Arava Power Company.

The research center will be a joint project of Ben-Gurion University of the Negev and the Weizmann Institute of Science, and will be funded with donations from the Toronto community and the Jewish National Fund, among others.

According to its web site, the Arava Power Company (APC) will produce renewable energy and sell it to residents of the Arava and the Israel Electric Company. "The creation of Arava Power is part of a regional initiative to make the Arava the Silicon Valley of renewable energy." The company is negotiating for a regional exclusive on a new photovoltaic solar panel technology and is also setting up an independent affiliate across the border in Jordan.

Ed Hofland is Arava Power's Chairman, and Yossi Abramowitz is its President. Abramowitz blogs at Peoplehood.org, and, in September 2007, he gave a sermon on why developing solar power is part of the mission of the Jewish people. His words are inspiring, and I highly recommend reading the post.

For a sense of what Abramowitz has to say, and the goals that the Arava Power Company has set for itself, here is a passage from his sermon:

"The building of solar fields in the footsteps of Moses and the Israelites is certainly a worthwhile task (and may explain the glow on his face). Yet it can be much more. Can Israel become the first western economy to make the switch from carbon-based to solar based? Can the Jewish people become carbon neutral by 2020..."

New Israeli agritech fund established

"Globes" reports that a new agritech fund, the Central Arava Fund, established with the support of Australian Jewish investors, will begin operating in April 2008. The new fund aims to establish agrotech and agrobiotech companies in the Arava region of the Negev. A second goal is to create high-tech job opportunities for residents of the Arava after their studies.

The Central Arava Fund expects to raise an initial $5-8 million, and raise an additional $40 million in the second stage. The bulk of the financing will come from Australian Jews. Arava residents and companies will be able to invest in the fund with minimum investments of $25,000.

Central Arava Fund's managers will be Eliezer Manor and Gil Lissai. Manor, a physicist, is a veteran venture capitalist, and founder of the Israel Venture Association. Lissai has experience in agriculture. He has worked with farms in both the Arava and in other countries and advised high-tech ventures and exporters.

The fund's mangers and investors discuss their plans in more detail in this YouTube video. The fund is apparently considering investing in biofuels and other alternative energy technologies related to agriculture.