By George Litman, Office of Environmental Technologies Industries

The Water and Wastewater Equipment Manufacturers Association (WWEMA) held its 29th Washington Forum April 25-26, 2002, in Washington D.C., where over 60 U.S. companies discussed the latest developments and key issues facing the domestic and international water and wastewater industry. Commerce Deputy Assistant Secretary (DAS) for Energy, Environment, and Materials, Kevin Murphy, was the Keynote Speaker for this annual gathering of leading environmental firms. DAS Murphy spoke about the Bush Administration’s continued support for U.S. exports via a wide array of financing, market research, and trade promotion services. In addition, DAS Murphy noted that the Office of Environmental Technologies Industries (ETI) would continue to focus on assisting small and mid-size companies in their environmental equipment and services export efforts. WWEMA is a non-profit trade organization founded in 1908 to represent the interests of companies that manufacture products sold to the potable water and wastewater treatment industries. For additional information on the services provided to WWEMA members, please contact Dawn Kristoff at 703-444-1777.

Overseas Opportunities For U.S. Clean Energy Companies

By Joe Ayoub, Office of Energy

U.S. Clean Coal Technologies - Leading the way into the 21^st Century

Coal is one of the world’s most abundant fuel sources. It is expected to remain a primary fuel source for electricity production despite a slight projected decrease from 34% to 31% of the world’s total energy mix. Traditionally considered a “dirty” fuel, new 21^st Century technologies are able to pre-treat and burn coal more efficiently than in the past. These technologies reduce emissions of sulfur and nitrogen oxides, while providing distinct advantages over conventional coal utilization systems, resulting in more environmentally friendly use of this plentiful fuel source. In new coal-fired power generation plants, clean coal technologies can be used to reduce emissions to acceptable environmental limits -- with the newer technologies providing greater generating efficiencies while reducing carbon dioxide emissions. Markets for these U.S. technologies exist in coal-dependant economies such as China, Eastern Europe and India.

U.S. Solar Power and Wind Energy Technology

Solar export markets in 2000 for U.S. solar photovoltaic (PV) cells and panels and wind energy equipment and services continued the 1990s decade-long trend of rapid growth. Accelerated export market growth, especially in Europe and Japan, is expected to continue in 2001 and 2002.

This export market growth has been stimulated by European and Japanese government or power utility policies to dramatically increase the amount of electricity generated by environmentally sustainable energy sources and technologies. Because renewable energy technologies can generate electricity at the micro-level (enough for an individual home), these are an attractive alternative for dispersed and remotely located populations. There are quite a number of small- and medium-sized enterprises (SMEs) in the renewable energy technologies sector that are well positioned to compete in the international market place.

Solar Power
Growth in solar PV sales and installations in most European countries and Japan is directly related to the rapid expansion of building-integrated solar PV in commercial and residential buildings. Solar PV systems installed on top of or near buildings, or in the buildings’ skylights and windows, are integrated into the buildings’ power connections with the utility grid. Thus the solar PV panels can either generate power for use in those buildings (instead of power received from the grid), or can be transmitted directly into the utility grid under “net metering” procedures. Under net metering, accumulated power usage recorded by the building’s meter is decreased by the solar power fed into the grid, thereby reducing monthly power bills. In Japan alone, approximately 100 MW of solar PV panels were installed in buildings in 2000, an extraordinarily large quantity that, for comparison sake, equals almost 1/8 of all solar PV panels installed worldwide during the past 20 years.

Export sales of U.S. solar PV cells and panels increased by almost 80% during the 5 year period from 1994-1999. U.S. solar PV cell/panel exports grew even faster in 2000, increasing by almost 38% from 1999 levels to reach $185 million. Since the value of solar PV cells and panels is almost one-half of the total system cost, exports of all solar PV systems and equipment in 2000 is estimated at $350 million. U.S.-produced solar cells/panels comprise approximately 25% of total global shipments. U.S. solar PV export sales are highly concentrated by country/region. Sales to European countries in 2000 accounted for 48% of total U.S. solar PV exports; sales to Japan, 21% of total exports; sales to Asia’s other industrial economies (China, Hong Kong, Taiwan, Singapore and Korea) 7.3% of total U.S. PV exports; to Canada, 5.6%; to South Africa, 5.1%; to India, 2.5%; to Mexico, 2.1%. The remaining 8% was sold to over 70 developing countries worldwide.

Wind Power

Wind power equipment/services export market growth in 2000, concentrated in European countries and India, also accelerated in the double digits range. Wind turbines, wind power conditioning and interconnection controls and equipment, and wind energy services are configured in two different ways. One is by large-scale, multi-megawatt, utility grid-integrated wind power generation projects, built in locations where strong wind velocities exist for most of the year. The other is by individual multi-kilowatt wind turbine installations connected to residential or commercial buildings in locations of lower wind velocities, where zoning and terrain allow for wind power. Wind electricity generated by that configuration is used on-site within the buildings, with any excess power generated by the wind turbines fed into the utility grid.

Measured by megawatts of wind power installed, the world market increased by almost 32 % (4,500 MW) in 2000 to a total level of 18,500 MW installed around the globe. Almost 75 % of that total wind power is installed in European countries, with Germany’s total of 6,400 MW reached in 2000; Spain’s total reaching 2,600 MW; and Denmark’s total reaching 2,300 MW. (By comparison, domestic US installed wind power in 2000 increased by over 40 % from 1999, reaching a total level of 2,500 MW installed.) The extremely rapid growth of wind turbine production, installation and operation is expected to continue during the next five years. Over 39,000 additional MW of wind power is expected to be installed during the period 2001-2005, the vast majority to be installed in Europe, Japan and a handful of developing countries including India, Brazil and China. The cumulative value of this additional wind power generation/conditioning equipment and associated services expected to be installed worldwide during the 2001-2005 period is estimated at $U.S. 30-32 billion.

For more information on overseas clean energy markets, please contact Les Garden at the U.S. Department of Commerce at 202-482-0556.

ETI’s Desalination Technologies Exports Program

By Corey Wright, Office of Environmental Technologies

U.S. desalination technologies exports are an important water industry sub-sector for the Office of Environmental Technologies Industries (ETI). ETI’s research indicates that this sub-sector will see excellent annual growth in the 21^st century. For example, according to WANGNICK Consulting, GMBH, experts in desalination industry consulting, there are more than 13,600 desalination units around the world producing in excess of 26 billion cubic meters of water per day. This figure represents growth rates of more than 35 percent in the number of desalination units and 6 percent in total water production capacity since 1997.

Recently, ETI expanded its cooperation with the two leading desalination associations: International Desalination Association (IDA) and the American Membrane Technology Association (AMTA). In March 2002, IDA sponsored two delegates from the Department of Commerce at the IDA World Congress on Desalination and Water Reuse in Bahrain. U.S. Commercial Service officers from Saudi Arabia assisted more than 40 U.S. environmental firms that participated in this event, the largest event in the world for the desalination industry. IDA’s next Biennial Conference is planned for September 28-October 3, 2003 in the Bahamas (www.ida.bm).

On August 7-9, 2002, ETI participated in the AMTA 2002 Biennial Conference and Expo in Palm Harbor, Florida ( www.amta.org). AMTA was founded in 1973 to promote the improvement of national water supplies through desalting, reuse, and other sciences. Its members include industrial users, water suppliers, manufacturers, equipment suppliers, consultants, and engineers. ETI met with hundreds of participants at this event and supported more than 40 U.S. environmental firms that exhibited their desalination technologies and services.

ETI aims to lead a Desalination Technologies Trade Mission in late 2003-2004, with possible stops in Asia and the Gulf States. In the Gulf region, it has been estimated that more than $50 billion will be spent on water projects over the next several years, including major expansions and upgrades of existing desalination plants and capacity. Solid opportunities exist in Asia for U.S. environmental firms to get further involved in the continuous expansion of the region’s capacity of desalinating sea water, which is needed to satisfy its tremendous urbanization and population growth demands. U.S. environmental firms interested in participating in a desalination trade mission are encouraged to contact ETI’s Corey Wright at: 202-482-2844, or email Corey_Wright@ita.doc.gov

U.S. - China Trade Events Open Doors for Several U.S. Firms

The Office of Environmental Technologies Industries (ETI) significantly advanced U.S. environmental trade objectives in China at the China Infrastructure Development Meetings in Shanghai in May, 2002. ETI worked closely with other U.S. government agencies to help U.S. firms in the highly competitive China market. These efforts supported Commerce Secretary Don Evans’ recent trade mission to China and our objectives under our bilateral Joint Commission for Commerce and Trade (JCCT). Targeting China’s $17B environmental market is a high priority for ETI.

U.S.-China Infrastructure Development

ETI, U.S. Commercial Service, U.S. Trade and Development Agency, U.S. Export-Import Bank, and numerou s U.S. firms took part in the highly successful China Infrastructure Development Meetings in Shanghai during the 35^th Annual Meeting of the Asian Development Bank (ADB) May 8-12, 2002. Approximately 50 U.S. energy, environment, finance, transportation, and communication firms, and 120 Chinese officials from central government agencies and 21 provinces and municipalities took part in this 4-day series of matchmaker meetings, presentations, and technical seminars. Some 190 one-on-one meetings were held, and potential projects valued at more than $3.8 B were discussed in detail, a good portion of which includes environmental projects that ADB will add to its existing $5.1B environmental loan portfolio for China. Initial environment/energy sector results are:

• Han’s Technologies, a small Oakland, CA company won a $1.5 M wastewater treatment plant project for Guiyang City, Guizhou Province;
• Keeco, a small Lynnwood, WA environmental company, signed a $142 M deal for a hazardous waste treatment project in Sichuan Province;
• Team China-USA, of Tustin, CA secured investment to complete a $86 M, 110MW environmentally-friendly power plant in Luoyang, Henan Province, China.

ETI also laid the foundation for USDOC /EPA-sponsored technical workshops on pollution prevention and energy efficiency (P2E2) for China’s key industries. The first in a series of industrial P2E2 workshops took place in Beijing July 29-30, 2002. The workshops will highlight regulatory-commercial collaboration regarding emissions compliance and market incentive programs by featuring U.S. environmental technology companies as expert providers, and key U.S. multinationals as practitioners of best environmental practices. DOC and EPA plan to conduct additional industrial P2E2 workshops with China’s State Environmental Protection Administration (SEPA) and environmental protection bureaus in other Chinese cities, such as Wuhan, Chengdu, Xi’an, Shenyang, and Guangzhou, and welcome interested companies to participate (Contact Susan Simon at 202-482-0713).

By David O’Connell, Office of Environmental Technologies Industries

ECP Service Corporation, of Kent, WA is a U.S. environmental products and engineering company, specializing in pollution prevention, waste reduction and spill response for the maritime industry and general industrial operations. With the assistance of The Office of Environmental Technologies Industries and the Seattle Export Assistance Center, ECP was recruited to participate in Commercial Service-Vancouver's Environmental Technologies Dealmaker at Globe 2002. ECP's program included one-on-one appointments with potential distributors, a subscription to BUYUSA.com, promotion of their catalog brochure to show attendees, and an exclusive networking reception at the Consul General's residence. As a direct result of ECP's participation in Globe 2002, Mark Fernandez of ECP reported that he has signed a distributorship agreement with local firm Rocky Mountain Environmental. Approximately $150,000 in sales are expected this year alone.

Purafil, Inc. of Doraville, Ga. recently secured a $150,000 contract with the Belgium branch of Stora Enso pulp and paper mills after pursuing them for six years. The mill became dissatisfied with competitors ’ less expensive products and turned to Purafil for its high-quality products and services. Nine Purafil side-access filtration systems will protect numerous multi-million dollar computers running the mill from corrosive gases. The corporation’ s success in partnering with Stora Enso-Belgium is based largely on the cooperative efforts of contractors and engineers from Belgium, Finland, and France. Richard Corel, European Regional Sales Manager for Purafil, states that “ though this project was an international one involving four or five companies altogether, we acted as one organization. The cooperation between the representatives and the coordination from Purafil made this project especially interesting and successful.” This application marks the third installation of Purafil systems in Belgian pulp and paper mills.

Resonant Shock Compaction (RSC), LLC of Denver, CO was recently awarded the Colorado Small Business Exporter of the Year Award by the U.S. Small Business Administration Office. This prestigious award was presented to RSC at the Colorado Small Business Week Awards Luncheon on May 20, 2002. RSC’s exporting project has focused on the conversion of coal utility ash and other industrial waste materials into structural and ocean based products. Development of systems from this project will launch RSC as a world-wide supplier of sustainable construction technology. Initial training and technology transfer will take place at RSC's product development facility at the University of Denver. The systems development has been done at NKK's Concept Engineering Center outside Tokyo. This program by RSC was made possible by the support of the University of Denver Department of Physics and Astronomy, the Colorado Environmental Business Alliance, the Japan External Trade Organization, the City and County of Denver, and the Denver Mayor's Office of Economic Development.

Ionics Inc., of Watertown, MA , was a consortium member of Kharafi National-Ionics-Bechtel-United Utilities when on January 22, 2001, they were announced as the winner of the $390 million Sulaibiya Wastewater Treatment project (US$120 million US content). The road to final approval was anything but easy, with delays coming from all directions. In close cooperation with the U.S. Department of Commerce’s Advocacy Center and Market Access and Compliance divisions, the Embassy Kuwait Team mounted a multi-tiered advocacy campaign that reached the highest officials in the Government of Kuwait. Ambassador James Larocco led the charge, conducting key meetings with ministers to underscore the important the U.S. Government placed on Sulaibiya. The Commercial Section maintained constant contact with the evaluators from the Kuwait Institute for Scientific Research and the Environmental Public Authority to learn the status and encourage forward movement on the project. In addition, they also acted as liaison with consortium leaders Kharafi National, ensuring that U.S. Government advocacy was well-targeted and timely. Sulaibiya ranks among the most significant projects awarded to U.S. firms since Kuwait’s liberation.

Revised ETI Home Page

New graphics. New features. Check out the new and improved ETI home page at www.environment.ita.doc.gov . We have added trade leads and tariff information, and have expanded our section on Finance. The important Trade Barriers Survey Form allows your company to provide input to the U.S. Government for upcoming World Trade Organization (WTO) trade negotiations.

Regional Highlights

Asia

New China Reports Available . “Partnering in China’s Environmental Sector” is an excellent report for U.S. firms seeking export opportunities in China. A comprehensive report entitled “China: Environmental Technologies Export Market Plan” ; will also be available in late August. Visit ETI’s website at ( www.environment.ita.doc.gov) for several other reports compiled by the U.S. Commercial Service in China. (Contact: Susan Simon at 202-482-0713).

New Korea Environmental Technologies Export Market Plan. A new customized ETI report on the Korean environmental marketplace is now available on the ETI website at: The report, which provides an overview of environmental regulatory trends and business opportunities in Korea, comes at a time when Korea has experienced rapid economic growth in the wake of the Asian financial crisis of 1997. (Contact: George Litman at 202-482-0560)

Indonesian Water Project to Benefit Urban Poor. The U.S. Asia Environmental Partnership’s (US-AEP) Urban Poor Data Acquisition and Technical Evaluation (UPDATE) project recently completed a survey of water vendors and poor urban consumers in Semerang, Central Java. The collected data is being used to help local governments and municipal water enterprises extend piped water to a greater proportion of the urban poor on a sustainable basis. If the survey findings are supported by data collected in the cities they will be used to recommend changes in local government water tariff policies. The tools will then be pilot tested with the cooperation of PERPAMSI, the Indonesian Water Supply Association. For more information on Indonesia’s environmental marketplace, contact Sage Chandler at 202-482-1500.

Municipal Manager Certificate Program Developed in Thailand. In March 2002, the U.S. Asia Environmental Partnership (US-AEP) provided technical assistance to the College of Local Government Development of the King Prajadhipok Institute to develop two training curricula and training manuals for the Municipal Manager Certificate Program on Local Administration Management and in Urban Planning and Development. The Urban Planning and Development curriculum will provide local government leaders and administrators with strategic approaches to urban planning management, strategic planning, and management responsibility. For more information on Thailand’s environmental marketplace, contact Sage Chandler at 202-482-1500.

Europe

Environmental Business Development Mission, October 14-18, 2002 to Paris & Lyon. The California Technology, Trade and Commerce Agency, in partnership with the U.S. Department of Commerce and Advancing California’s Emerging Technologies, is recruiting companies for an environmental business development mission to France. California environmental technology innovators are strongly encouraged to participate in this mission, which caters to each individual company’s needs to find qualified buyers, including partners, end users, and distributors. The business mission will include:exclusive one-on-one business meetings with qualified business counterparts; in-country publicity for your products and services prior to the mission; two VIP networking events; assistance from in-country mission coordinators (interpretation services); and post-mission follow-up counseling. (Contact: Jim Miwa at 916-322-5298;

EU Export Initiative for California Companies. California-based environmental and biomedical startup and small to medium-sized companies are encouraged to take advantage of a new $1.2 million program designed to assist their export efforts to Europe. The EU Export Initiative is organized by the Advancing California’s Emerging Technologies (ACET) incubator as well as the trade expertise of its state and local partners: the California Technology, Trade & Commerce Agency and the Bay Area World Trade Center. The EU Export Initiative is funded by the U.S. Department of Commerce Market Development Cooperator Program. Stricter European environmental regulations are stimulating demand for next-generation energy efficiency, recycling, pollution prevention and other environmental technologies. The program specializes in identifying and qualifying potential European partners for your company in the biomedical and environmental industries. (Contact: Jennifer Juo, trade manager, ACET incubator at 510-749-6873 or

Latin America

ETI at Aqua Tech Brazil , August 27-29, 2002. U.S. environmental exports to Brazil totaled approximately $ 316 million in 2000. To take advantage of this Brazilian water & wastewater market opportunity for U.S. companies, ETI will be assisting U.S. companies participating at the U.S. pavilion at Aqua Tech. In addition, we will be distributing company literature and searching for interested buyers for Vermont environmental companies as part of the USDOC-sponsored Market Development Cooperator Program Grant with the Vermont World Trade Center, the Vermont Chamber of Commerce, and the Lake Champlain Chamber of Commerce. (Contact: George Litman at 202-482-0560).

Oil Spill & Remediation Companies Needed to Speak at Rio Technical Seminar . The goal of this Oil Spill & Remediation seminar is to introduce U.S. oil spill technologies companies to decision makers and buyers in the Brazilian market - mainly at Brazil’s state-owned oil company Petrobras - about oil spill response management and technologies. 3 - 4 U.S. companies (one each from: operation safety equipment; oil spill management services; and petroleum waste management services) will provide an overview of an oil spill response management program that has been effectively adopted in the U.S. The Office of Environmental Technologies Industries is sponsoring this seminar to capitalize on the momentum created by TDA’s “Brazil Petrobras Environmental Officials Orientation Visit” last April in Houston, and to ensure that U.S. firms are capitalizing on the project/procurement opportunities under the Petrobras Pegaso program, which features investments of up to $1 billion through 2003. For more information or to register as a speaker, contact David O’Connell at 202-482-3509 (david_oconnell@ita.doc.gov)

ECOLATINA, one of the largest events of the environmental sector in Brazil, is going to be held for the fifth time during September 24 – 27, 2002, in Belo Horizonte . This event is a conference and a trade show, dedicated to all aspects of the environmental sector. It is a well-known event for this sector in Brazil, and is attended by professionals from all over the country. ETI recommends this event to U.S. companies as a good opportunity to contact potential Brazilian partners, and to promote their products in this country of 170 million people. For more information on the Brazilian environmental marketplace, contact David O’Connell at 202-482-3509.

Other News

Export Finance Seminar Scheduled for New York City, September 19, 2002: The Office of Environmental Technologies Industries is co-sponsoring this seminar with the U.S. Commercial Service and the World Trade Institute of Pace University to provide the international business executive with critical information on the various grants and export finance programs that are available to U.S. environmental companies. This Finance Roadshow has recently traveled to ten U.S. cities, where potential and experienced exporters have learned first-hand about: grant programs provided by Ecolinks - US AID’s Eastern Europe Program; special finance programs of the U.S. Export-Import Bank designed for new-to-export and small to medium-sized environmental companies; feasibility studies, grants, and other forms of technical assistance provided by the U.S. Trade & Development Agency (TDA); and infrastructure and industrial projects in emerging markets financed by the multi-lateral development banks. To sign up for the September 19 seminar in New York, contact ETI’s David O’Connell at 202-482-3509 (david_oconnell@ita.doc.gov)

Global Trade & Technology Network

(Free Trade Leads at: ww.usgtn.net) The Global Trade & Technology Network (GTN) assists the U.S. business community in gaining access to environmental and clean energy markets in 37 developing and emerging market countries by providing trade leads and market information free of charge. GTN currently has a database with U.S. firms covering over 600 different sub-sectors within the environment and energy industries. Since 1997, GTN has helped facilitate over 100 deals in the environmental sector worth an estimated value of more than $160 million. Through partnerships with other federal government agencies, GTN can assist your firm access trade finance opportunities. Registration is free for U.S. companies; simply visit www.usgtn.net to register now. (Contact: Erin Webster at 202-628-9750 x19)