[Federal Register Volume 76, Number 241 (Thursday, December 15, 2011)]
[Notices]
[Pages 77977-77979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32131]


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DEPARTMENT OF COMMERCE

International Trade Administration


U.S. Clean Energy and Energy Efficiency Trade Mission to Saudi 
Arabia Riyadh and Dhahran, Saudi Arabia April 14-18, 2012

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce (DOC) International Trade 
Administration's (ITA) U.S. and Foreign Commercial Service (CS) and 
Manufacturing and Services (MAS) units are organizing an Executive-Led 
Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia from 
April 14-18, 2012.
    Saudi Arabia offers abundant opportunities to U.S. companies that 
can contribute to its ambitious plans to improve energy efficiency and 
reduce reliance on hydrocarbons for power generation. The trade mission 
will target products, technologies and services in the clean energy 
sector, with an emphasis on solar power; electricity transmission and 
smart grid; and green building in residential, commercial and 
industrial settings. This mission will contribute to the National 
Export Initiative (NEI, www.export.gov/nei) and the Renewable Energy 
and Energy Efficiency Export Initiative (RE4I, www.export.gov/reee/re4i), and it supports ITA's mission of assisting U.S. businesses in 
entering or expanding in international markets, and enhancing U.S. 
exports. Saudi Arabia was selected as a Next Tier market for the NEI 
because it is the largest economy in the Middle East and is a political 
and economic leader in the region.
    The mission will help participating firms gain market insight, make 
industry contacts, solidify business strategies, and identify or 
advance specific projects with the goal of increasing U.S. exports to 
Saudi Arabia. The schedule will include one-on-one business 
appointments with pre-screened potential buyers, agents, distributors 
and joint venture partners; meetings with national and regional 
government officials; and networking events. Participating in an 
official U.S. Government delegation, rather than traveling to Saudi 
Arabia individually, enhances each company's ability to secure desired 
meetings.

Commercial Setting

    Saudi Arabia has identified an urgent need to reduce its reliance 
on petroleum-generated power; as a result it is both developing 
alternative energy sources, principally nuclear and solar power, and 
promoting more efficient generation and use of energy. While Saudi 
Arabia possesses one-fifth of global oil reserves, it meets almost 60% 
of its domestic power needs from petroleum. The growth of domestic 
electricity demand--and thus domestic petroleum consumption--is cutting 
deeply into exports. Domestic consumption is growing at an estimated 8-
9% annually, and is projected to almost triple in the next two decades, 
from 3.4 million barrels per day oil equivalent in 2009, to 8.3 million 
barrels per day in 2028. Peak power demand is expected to increase from 
43 gigawatts in the summer of 2010 to more than 120 gigawatts by 2030. 
Oil used domestically is heavily subsidized by the Government resulting 
in not only reduced export income, but enormous opportunity costs as 
there is less feedstock for development of downstream petrochemical 
industries and the jobs that go with them. Saudi Arabia hopes to reduce 
by half the crude and natural gas it burns now to generate electricity, 
in part by developing solar power generation capacity, an area where it 
has clear climatological advantages. As Saudi Arabia expands its energy 
supply and integrates renewable energy, further investment will be 
required in grid modernization and smart grid technologies that enable

[[Page 77978]]

utility management of variable energy sources.
    On the demand side, residential air conditioning consumes as much 
as 50% of total power during Saudi Arabia's long, hot summers. Saudi 
Arabia plans to construct 1.65 million new homes over the next six 
years and will be looking closely at products, materials and 
technologies that reduce energy use and loss. Saudi Arabia also relies 
on desalination plants to produce 70% of its potable water, using as 
much as 1.5 million barrels per day of oil equivalent to do so; Saudi 
Arabia hopes to start up its first solar-powered desalination plant in 
2013.
    Renewable Energy: The Saudi Arabian Government has made a 
commitment to invest $100 billion dollars over the next ten years to 
develop clean, non-hydrocarbon energy sources focused primarily on 
nuclear and solar technologies. Its plans call for the creation of 
Saudi Arabia's first 5 gigawatts of solar power by 2020. Demand for 
power in Saudi Arabia has been continuously increasing due to rapid 
industrialization, economic development and population growth. 
Importantly, Saudi Arabia's abundant solar resources, combined with an 
energy intensive industrial base that uses electricity at a steep 
economic cost, strengthens the economic case for solar generation.
    Electricity Transmission and Smart Grid: High incomes and rising 
electricity demand have driven both electricity consumption and 
investment in transmission infrastructure in Saudi Arabia. In 2010, 
Saudi Arabia was the 15th largest market for U.S. transmission and 
distribution technology exporters and the market saw a 13% compound 
annual growth rate over the previous decade, with U.S. grid equipment 
exporters sustaining a relatively high market share throughout. As 
Saudi Arabia expands its energy supply and integrates renewable energy, 
further investment will be required in grid modernization and smart 
grid technologies that enable utility management of variable energy 
sources. As the country's transmission and distribution infrastructure 
is modernized, commercial and industrial-scale consumers will also seek 
to capitalize on potential energy efficiency gains through investments 
in smart grid and smart building technologies and services.
    Greenbuilding/Energy Efficiency: Saudi Arabia is among the highest 
per capita energy users in the world. To reach its goal of reducing the 
amount of crude and natural gas it burns to generate electricity, all 
consumers--residential, commercial, industrial, government--must become 
more efficient users of electricity. The market potential for 
residential and industrial energy efficiency products and services is 
projected to grow rapidly and open up a wide range of opportunities for 
U.S. companies in the green building and energy efficiency subsectors.
    Companies will have the opportunity to meet major buyers and end-
users, prospective partners and government officials at the following 
stops:
    Riyadh, the seat of government and many non-governmental 
organizations and educational institutions devoted to the development 
of alternative energies and green technologies, including the King 
Abdullah City of Atomic and Renewable Energy (KA-CARE). It is also 
Saudi Arabia's largest city, with a population of 5 million; and 
Dhahran-Dammam-Khobar, with a population of over 1 million is the home 
of Saudi Aramco, which will likely be a primary customer for renewable 
energy technology providers.

Mission Goals

    The goal of the Clean Energy and Energy Efficiency Trade Mission to 
Saudi Arabia is to promote the export of U.S. goods and services by: 
(1) Introducing U.S. companies to industry representatives and 
potential clients and partners; (2) advocating to Saudi officials 
regarding policies that would limit U.S. export opportunities and 
inhibit the development of renewable resources and energy efficiency 
projects; and (3) introducing U.S. companies to Saudi Arabian 
government officials to learn about policy initiatives that will impact 
the implementation of renewable energy projects, improving energy 
efficiency, and developing a domestic manufacturing base for renewable 
energy products using U.S. goods and services.
    The Clean Energy and Energy Efficiency Trade Mission to Saudi 
Arabia will advance the priorities of the Renewable Energy and Energy 
Efficiency Export Initiative (www.export.gov/reee/re4i).

Mission Scenario

    In Riyadh, mission members will participate in an Embassy briefing, 
meet with Saudi Government officials and take part in one-on-one 
business appointments with private-sector organizations. In addition, 
they will enjoy a networking reception with Saudi private sector 
managers, government officials and representatives of key multipliers. 
In Dhahran, mission members will attend a networking event, have 
customized one-on-one business appointments, meet and receive a 
briefing from senior managers of Saudi Aramco, and visit the industrial 
city of Jubail.
    Matchmaking efforts will involve trade organizations and 
associations such as the Riyadh and Eastern Province Chambers of 
Commerce, the Council of Saudi Chambers of Commerce and Industry, and 
the U.S.-Saudi Arabian Business Council. U.S. participants will be 
counseled before and after the mission by CS Saudi Arabia staff and 
other federal agencies actively involved in clean technology trade 
promotion activities in Saudi Arabia.
    A representative of the Export-Import Bank of the United States 
will be invited to participate to discuss opportunities for export 
finance.

                                               Proposed Timetable
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                 Date                          Location                             Activity
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Saturday, April 14--Day 1............  Riyadh.................  Arrive Riyadh.
                                                                Check in at hotel.
                                                                Ice-breaker with FCS Staff/Q&A.
Sunday, April 15--Day 2..............  Riyadh.................  U.S. Embassy Briefing.
                                                                Sectoral briefings/discussion hosted by Council
                                                                 of Saudi Chambers of Commerce.
                                                                One-on-one matchmaking meetings.
                                                                Evening: Networking reception hosted by Amb.
                                                                 Smith.

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Monday, April 16--Day 3..............  Riyadh-Dhahran.........  KA-CARE visit and policy roundtable.
                                                                Call on Minister of Water and Electricity.
                                                                Discussion panels on: (1) Legal Aspects of Doing
                                                                 Business in Saudi Arabia; (2) Financing
                                                                 Projects/Sales.
                                                                Evening: Fly to Dhahran.
Tuesday, April 17--Day 4.............  Dhahran................  Morning: Visit to Saudi Aramco, with briefing on
                                                                 renewable energy projects.
                                                                One-on-one matchmaking meetings.
                                                                Evening: Networking reception.
Wednesday, April 18--Day 5...........  Dhahran-USA............  Optional morning site visit to Jubail Industrial
                                                                 City.
                                                                Departure for the U.S.
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 (NB: The precise schedule will depend on the availability of local government officials and business managers,
  and the specific goals of mission participants.)

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
DOC. All applicants will be evaluated, on a rolling basis, on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 15 and maximum of 25 companies 
will be selected to participate in the mission from the applicant pool. 
U.S. companies already doing business with Saudi Arabia as well as U.S. 
companies seeking to enter to the Saudi Arabian market for the first 
time may apply.

Fees and Expenses

    After a company or organization has been selected to participate on 
the mission, a payment to the Department of Commerce in the form of a 
participation fee is required. The participation fee for the Trade 
Mission will be $3,020.00 for a small or medium-sized firm (SME),\1\ 
and $3,502.00 for large firms. The fee for each additional firm 
representative (large firm or SME/trade organization) is $500. Expenses 
for travel, lodging, meals, and incidentals will be the responsibility 
of each mission participant. Delegation members will be able to take 
advantage of U.S. Embassy rates for hotel rooms.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Conditions for Participation

    An applicant must submit a completed mission application signed by 
a company officer, together with supplemental application materials, 
including adequate information on the company's products and/or 
services, primary market objectives, and goals for participation. If 
the Department of Commerce receives an incomplete application, the 
Department may reject the application, request additional information, 
or take the lack of information into account when evaluating the 
applications.
    Each applicant must also certify that the products or services it 
seeks to export through the mission are 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.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's products or services to the 
market
     Applicant's potential for business in Saudi Arabia and in 
the region, including likelihood of exports resulting from the mission
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission
    Diversity of company size and location may also be considered 
during the review process.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    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://export.gov/trademissions) and 
other Internet Web sites (including the Renewable Energy & Energy 
Efficiency Exporters Portal at www.export.gov/reee), press releases to 
general and trade media, direct mail, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than March 1, 2012. The U.S. Department of Commerce will review 
applications and make selection decisions on a rolling basis beginning 
February 1, 2012. Applications received after March 1, 2012 will be 
considered only if space and scheduling constraints permit.

Contacts

Jennifer Derstine, Manufacturing and Services, Office of Energy and 
Environmental Industries, Washington, DC, Tel: (202) 482 3889, Email: 
[email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2011-32131 Filed 12-14-11; 8:45 am]
BILLING CODE 3510-FP-P