[Federal Register Volume 70, Number 126 (Friday, July 1, 2005)]
[Notices]
[Pages 38103-38105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3469]


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DEPARTMENT OF COMMERCE

International Trade Administration


Renewable Energy Trade Mission

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice to Renewable Energy Trade Mission to Brazil, October 17-
19, 2005.

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SUMMARY: The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service is organizing a Renewable 
Energy Trade Mission to Brazil, October 17-19, 2005, to help U.S. firms 
find business partners and sell renewable

[[Page 38104]]

energy equipment and services in Rio de Janeiro, S[atilde]o Paulo, and 
Salvador da Bahia. Targeted sectors include hydro, wind, solar, bio-
diesel and biomass.

FOR FURTHER INFORMATION CONTACT: Office of Global Trade Programs; Room 
2012; Department of Commerce; Washington, DC 20230; Tel: (202) 482-
4457; Fax: (202) 482-0178.

SUPPLEMENTARY INFORMATION: Renewable Energy Trade Mission, Brazil, 
October 17-19, 2005.

Mission Statement

I. Description of the Mission

    The United States Department of Commerce, International Trade 
Administration, U.S. Commercial Service is organizing a Renewable 
Energy Trade Mission to Brazil, October 17-19, 2005, to help U.S. firms 
find business partners and sell renewable energy equipment and services 
in Rio de Janeiro, S[atilde]o Paulo, and Salvador da Bahia. Targeted 
sectors include hydro, wind, solar, bio-diesel and biomass. The 
mission, to be led by a U.S. Department of Commerce official, will 
include business-to-business matchmaking with local companies and 
meetings with key government officials. Representatives of the Overseas 
Private Investment Corporation (OPIC) and the U.S. Agency for 
International Development (USAID) will be on hand to provide 
information and counseling on their programs.

II. Commercial Setting for the Mission

    The renewable energy sector in Brazil holds enormous potential for 
development over the next four years, given the country's wealth of 
natural resources for wind, biomass, solar and hydro projects, and the 
Brazilian government's Incentive Program for Alternative Electric 
Energy Sources (PROINFA), which aims to install by 2008 small hydro, 
wind, and biomass facilities capable of generating 3,300 MW. (PROINFA 
defines small hydropower projects as having a maximum installed 
capacity of 30 MW.) This program is expected to attract more than US$2 
billion in investments from 2005 to 2008.
    Small hydropower plants have commanded critical attention since the 
2001 energy crisis and the implementation of PROINFA. Brazil has a long 
tradition of hydropower generation, from both small and large plants. 
The generation of 1,100 MW in new PROINFA projects is already approved, 
and many Brazilian companies are investing in small hydro projects that 
are not part of PROINFA. While most demand is currently supplied by 
subsidiaries of such companies as GE, Siemens, ABB and Alstom, there 
are opportunities for sales of selected components.
    Wind energy is also a priority growth sector. Even the most 
conservative estimates put the potential for wind power production at 
more than 70,000 MW--nearly equal to Brazil's entire generating 
capacity (90,000 MW). There are many small wind power plants operating 
in Brazil, especially in the states of Cear[aacute] and Rio Grande do 
Sul. The 1,100 MW approved under PROINFA will be installed between 2005 
and 2008. There is currently only one manufacturer of large-scale wind 
power plants operating in Brazil, a subsidiary of the German firm 
Enercon.
    Solar power offers enormous development opportunities in Brazil, 
which has one of the world's most abundant solar energy resources and 
has only just begun to explore its potential. The use of solar water 
heaters in Brazil has increased rapidly in the last few years, with 
nearly 140 Brazilian manufacturers producing these products for 
residences, hotels, hospitals, and swimming pools. Most are very small 
companies.
    Photovoltaic technology (PV) is a competitive alternative to grid 
extension in remote areas of the country and in applications of social 
interest. The power needs of rural off-grid communities are relatively 
modest and therefore compatible with stand-alone PV systems. Estimates 
indicate that 5% to 10% of the non-electrified domiciles (about 
250,000) could be supplied with PV systems. The main PV applications in 
Brazil have been off-grid residences, public services, water pumping, 
and telecommunications. There are many initiatives underway utilizing 
stand-alone PV systems, more than 30,000 of them purchased for rural 
electrification.
    Biomass is a growth sector supported by Brazil's ambitious program 
for manufacturing bio-diesel from vegetable oils. The country plans to 
replace 2% of its diesel consumption through bio-diesel starting in 
June 2005 and increase this rate to 5% in 2009, primarily through use 
of castor oil and palm oil. Total consumption of fossil diesel is 
currently 38 billion liters/year.
    Brazil is the world's largest producer of sugarcane and ethanol. It 
has one of the most technologically advanced programs of bio-fuels of 
the world, in development since the 1970s. More than 3 million cars are 
powered exclusively by hydrated ethanol, consuming more than 5 billion 
liters/year. In addition, most gas sold contains 20%-25% anhydrous 
ethanol (production of 6 billion liters/year), the highest percentage 
mix in the world. It is expected that domestic and export demand for 
ethanol will continue to rise. The installed power of cogeneration in 
the sugar cane industry is approximately 1800 MW. Note that the bio-
diesel and ethanol programs do not fall under the PROINFA project, 
which is only for grid-connected electricity.
    Brazil also has very large planted forests, mainly of eucalyptus 
and pine, especially for the cellulose and charcoal industries. As 
these sectors are growing at very high rates, a shortage of eucalyptus 
is expected over the next few years. The total capacity for pulp is 
about 10 million tons/year, and for paper 9 million. Production from 
cellulose plants meets about 85% of electricity needs, and paper 
operations meet about 10%, whereas cogeneration from integrated paper 
and pulp plants meets about 60%. Under PROINFA, most approved biomass 
projects are for sugarcane bagasse, but there has also been interest in 
rice hulls, orange bagasse, wood chips, wood residues and fiber of palm 
oil kernels.
    PROINFA: Under PROINFA, the Brazilian Government, through its 
holding company Eletrobras, has already selected projects eligible to 
sell energy to the national grid in 20-year contracts with independent 
producers. Projects may have up to 80% of equity financed through 
subsidized loans from the Federal Economic and Social Development Bank 
(BNDES). A special US$280 million fund called ``Brasil Energia,'' set 
up by private pension funds and BNDES, offers financing to project 
sponsors selected under PROINFA. To qualify for PROINFA financing, a 
minimum of 60% of the project procurement must be of Brazilian-made 
equipment.
    After this goal of 3,300 MW is installed, a second phase of PROINFA 
will immediately follow to ensure that in 20 years wind, biomass and 
small hydropower systems supply 10% of Brazil's annual electric power 
consumption. For this second phase, only projects with a minimum of 90% 
Brazilian-made components will be eligible for BNDES financing.
    ``Light For All'' (Luz Para Todos), another of the Brazilian 
Federal government's important projects, has set a goal to achieve 
universal access to safe and affordable energy as a key element in its 
fight against rural poverty. There are currently nearly 18 million 
Brazilians living in remote communities without reliable access to 
electricity. In the Amazon region, there are more than 1,000 mini power 
plants, most of which use diesel oil to supply electricity to isolated 
villages. Many of them are old

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and inefficient. The need to serve this region is expected to create 
more opportunities for companies offering innovative and efficient 
technologies.

III. Goals for the Mission

    The goal of the Renewable Energy Trade Mission to Brazil is to 
provide U.S. participants with first-hand market information, access to 
government decision makers, and one-on-one meetings with business 
contacts, including potential agents, distributors and partners, so 
they can position themselves to enter or expand their presence in the 
Brazilian market.

IV. Scenario for the Mission

    The Renewable Energy Trade Mission will include three stops: Rio de 
Janeiro, S[atilde]o Paulo and Salvador da Bahia. In each city, 
participants will meet with potential business partners, customers, 
end-users and agents/distributors through one-on-one meetings and other 
activities, including regulatory meetings with high-ranking federal and 
state officials involved in this sector.

Timetable

    The full program includes Rio de Janeiro, S[atilde]o Paulo, and 
Salvador da Bahia. Members of the delegation who opt to visit 
additional cities, return to Rio, or remain in S[atilde]o Paulo instead 
of traveling to Salvador may pay an additional US$400 for Gold Key 
Service appointments. This fee is exclusive of interpreter and 
transportation costs, estimated at US$200.
Rio de Janeiro
October 16, 2005
    Arrive Rio de Janeiro
October 17, 2005
    Market briefing
    One-on-one business appointments
    Evening departure to S[atilde]o Paulo
S[atilde]o Paulo
October 18, 2005
    One-on-one business appointments
Salvador da Bahia
October 19, 2005
    Morning departure to Salvador de Bahia
    Afternoon business appointments

V. Criteria for Participant Selection

     Relevance of a company's business line to mission goals.
     Timeliness of the company's signed application and 
participation agreement (including the participation fees).
     Minimum of 7 and a maximum of 25 participating companies 
on the mission (a maximum of 10 firms with an existing local office in 
Brazil will be accepted).
     Potential for business in Brazil for the company.
     Provision of adequate information on the company's 
products and/or services, and the company's primary market objectives, 
in order to facilitate appropriate matching with potential business 
partners.
     Certification that the company meets Departmental 
guidelines for participation. Generally, a company's products or 
services should be either produced in the United States, or, if not, 
marketed under the name of a U.S. firm and have at least 51 percent 
U.S. content of the value of the finished product or service.
    The participation fee is $3,200 per firm, which includes one 
representative. The fee for each additional firm representative is 
$750. The option to participate in the trade mission is also being 
offered to U.S.-based firms in Brazil; the same fee structure applies.
    Any partisan political activities (including political 
contributions) of an applicant are entirely irrelevant to the selection 
process.
    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar--http://www.ita.doc.gov/doctm/tmcal.html--and other Internet Web sites, press releases to general and 
trade media, direct mail, broadcast fax, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows. The American Council 
on Renewable Energy (ACORE) and the Business Council for Sustainable 
Energy (BCSE) plan to publicize the mission to their members. The 
Commercial Service will explore and welcome outreach assistance from 
other interested organizations.
    Recruitment for the mission will begin in June and conclude 
September 5, 2005. Applications received after that date will be 
considered only if space and scheduling constraints permit.
    Contacts:

Eugene Quinn, Senior International Trade Specialist, Global Trade 
Programs (GTP), Renewable Energy Trade Mission Project Officer, Ph: 
202-482-0578 / Fax: 202-482-0973, [email protected].
Wake Margo, International Trade Specialist, Global Trade Programs 
(GTP), Ph: 202 482 2026 / Fax: 202-482-0973, [email protected].

    Contacts for U.S.-based Firms With a Presence in Brazil:

John Mueller, Commercial Director, U.S. Commercial Service, Belo 
Horizonte, Brazil, Tel: (55-31) 3213-1571 / Fax: (55-31) 3213-1575, 
[email protected].
Mauricio Vasconcelos, International Trade Specialist, U.S. Commercial 
Service, Belo Horizonte, Brazil, Tel.: (55-31) 3213-1573 / Fax: (55-31) 
3213-1575, [email protected].

    Dated: June 24, 2005.
Donald Businger,
Director, Office of Trade Event Programs.
[FR Doc. E5-3469 Filed 6-30-05; 8:45 am]
BILLING CODE 3510-DR-P