Op Eds & Articles
China is investing billions in environmental technologies, and while Israel’s sun always seemed to shine in the West, it’s looking to its new eastern friend to implement ideas and solutions that work.
From solar energy production in remote areas to green architecture in populated and polluted cities, China’s demand meets Israeli unique solutions developed over decades out of need and survival.
The Chinese government has been implementing frequent environmental policies over the past three years, allocating funding, calling for international investments, and supporting the establishment of R&D centers and international cooperation with nations of the world.
Israel has accepted the invitation. Its small and medium enterprises and bold new start-ups are discovering new opportunities rising in China. Some Israeli companies are already active in China’s fast-evolving market. From solar energy to catching the waves, to government partnerships vesting their interests in clean energy, we took a look at 8 case studies –– the tip of the iceberg –– marking fruitful clean energy cooperation between Israel and China.
1. The sun rises between Israel and China. With a sunny investment of $9.25 million from China this year, the Israeli solar company HelioFocus, founded in 2007, develops solar thermal systems that boost traditional electricity plants with solar energy. China’s large-scale manufacturer, Sanhua, announced earlier this year that it will invest in this Israeli innovation, and in a historical first between the two nations, Sanhua is set to acquire shares and become the second largest share holder in the young Israeli company.
This strategic investment is a first of a kind, and said to be the first in a long line of Chinese actual interest and investments in Israeli clean energy start-ups. According to Zhang Dao Cai, Sanhua’s president: “Sixty one years ago, Mr. David Ben-Gurion together with the other pioneers founded the State of Israel. Through a half century of hard working, the Israeli people also enjoying an ancient civilization have made remarkable achievements that have surprised the world. We are greatly encouraged and inspired to be able to work with the outstanding Israeli entrepreneurs and scientists in the development of new energy.”
2. A Better Place with a Chery on top. Major auto-manufacturers displayed their confidence in the development of green cars in the world’s biggest auto market –– the Beijing Auto Show 2010. Initiated by Israelis, Better Place was in the right place and at the right time, to enter the world’s fastest growing vehicle market. The leading auto producer and exporter Chery Automobile from China announced this April that it will jointly develop switchable-battery electric vehicle prototypes with Better Place, aiming at securing regional Chinese government EV pilot projects.
“We believe that our collaboration offers both companies the potential to lead the EV market in China and beyond,” said Dr. Yuan, Vice President of Chery, at the signing of their agreement.
“With only 2 percent of China’s population owning cars and 80 percent of sales in 2009 to first-time car buyers, China has the opportunity to create and lead an entirely new category around clean transportation,” said Dan Cohen, VP of Strategic Initiatives for Better Place.
3. Making waves in China. China’s choice of hydraulic hydro-electric power plants fills its need to find alternative power sources. Apart from soaring oil prices, the many typhoons and earthquakes afflicting the country make it difficult –– or even dangerous –– to sustain wind or nuclear based power plants.
SDE, an Israeli sea wave power plants technology company could provide the solution, recently finalizing construction of their first power plant in China to supply China’s Guangzhou province with hydroelectric power using wave energy. The company plans to continue building additional plants across China, if the pilot plant is a success.
4. Let the sun shine in! Natural daylight has been a key consideration in architecture for many years. It has a positive effect on people and plants and it’s a great way to save energy. Modern Chinese architects are keen to accommodate skylights in newly-built as well as renovated structures. And this is what Israel’s Palram offers. Using a unique PVC roofing technology to isolate sound and temperatures, and maximize energy exploitation, Palram’s panels combine shatter-proof durability with transparency and inherent UV blocking. Chosen by the Chinese government for various large-scale construction projects, such as the Beijing and Qingdao airports, the Olympic Sports Center stadium in Beijing’s Olympic sport center and more, Palram already operates offices in Beijing, Hong Kong and Guangzhou, modifying existing products to meet the demands of an ever-growing Chinese market.
5. Taking away salt’s sting. Hunger in the early industrial years of the People’s Republic of China led to a massive use of fertilizers that damaged water resources in China. Frequent floods caused by bursting dams along China’s rivers, together with desertification and pollution, created one of China’s greatest environmental challenges: water scarcity and sanitation.
China began to study seawater desalination in 1964, yet Israel’s IDE Technologies, which has built the largest desalination plants of its kind in the world, did not begin its activities in China until 1997.
IDE introduced a new concept to China: the use of wastewater heat as a driving force for its desalination units in order to save energy and minimize pollution created during the desalination process which is energetically very costly.
The joint venture, IDE China says it is in favor of a customized approach, and suggests new companies in the Chinese market carefully plan and manage their entry strategy to this huge market.
6. Making a big deal from the sun. Another aspect of sunny cooperation with Chinese large-scale manufacturers was recently piloted by Israel’s solar power integrator SBY Solutions (formerly Solar by Yourself).
SBY Solutions announced its new deal signed with China’s largest photovoltaic panel manufacturer, Suntech, purchasing $35 million worth of photovoltaic panels. This is one of the largest deals of its kind to date in the Israeli solar energy market. The panels are expected to enable production of 18 megawatts of electricity in SBY operations in both Israel and abroad.
7. Strike a “green” match. New Israeli consultancy and holding companies now in China are providing match-making services between Chinese demand and Israel’s homegrown solutions. Zhong Poleris Greentech Holdings and Sino Israel Green Solutions are two such platforms, on which Israeli-Chinese clean energy cooperation can flourish. The firms offer up their connections in government and private sectors to facilitate rapid progress to plan, test and commercialize Israeli solutions in China.
8. Governing clean tech businesses from both sides. Business for Israeli SME’s can also use free governmental support in order to widen their exposure to new opportunities in the Chinese large emerging market. Although clean tech as a new business channel has only recently attracted the full attention of Israel’s governmental arms in China, senior figures in Israel have clear intentions to promote this field in China and the world.
“Clean technologies are the biggest common ground that we can cooperate on,” said Gilad Erdan, Israel’s Minister of Environmental Protection at the end of a week-long visit to China in May. At the inauguration ceremony of the Israeli Pavilion at the 2010 Expo in Shanghai, Minister of Finance Yuval Steinitz disclosed that Israel would soon have four centers in China, which will provide a physical infrastructure, legal and tax services for Israeli companies seeking to launch operations in China, and infrastructure and services for those already there. Accompanying the minister in China, Israel’s national energy provider, the Israel Electric Company’s senior vice president discussed cooperation on R&D in solar with Suntech Power Holdings. This demonstrates the huge potential awaiting Israeli clean ventures in today’s China.
Israeli official visits to China were followed by visits to Israel by China’s Vice Minister of Finance, Li Yong, and China’s Minister of Science and Technology, Wan Gang. During these official visits, a new financial protocol – extending Israel’s support by $400 million – and a new R&D agreement were signed.
This cements Israel’s intentions to promote R&D cooperation with China and to enhance participation of Israeli small and medium enterprises in China’s green initiatives. China is motivated to buy from Israel, and export-oriented Israel is motivated by the challenge of innovation and China’s unique environmental needs.
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Karin Kloosterman contributed to this article.
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