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Viewing cable 07MANILA518, AMBASSADOR APPLAUDS US COMPANY INVESTMENTS IN RENEWABLE

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Reference ID Created Released Classification Origin
07MANILA518 2007-02-14 09:41 2011-08-25 00:00 UNCLASSIFIED Embassy Manila
VZCZCXRO7135
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #0518 0450941
ZNR UUUUU ZZH
O 140941Z FEB 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5254
INFO RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUCPDOC/USDOC WASHDC IMMEDIATE
RUEHZS/ASEAN COLLECTIVE IMMEDIATE
UNCLAS MANILA 000518 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON ENRG EAID EINV RP
SUBJECT:  AMBASSADOR APPLAUDS US COMPANY INVESTMENTS IN RENEWABLE 
ENERGY 
 
REF:  STATE 13805 
 
-------- 
Summary 
-------- 
 
1.  Ambassador highlighted USG promotion and American firm 
investment in alternative fuels during her February 7 visit to solar 
cell manufacturer SunPower and to a Ford plant, the sole 
manufacturer of biofuels capable vehicles in the Philippines.  These 
two U.S. companies are at the forefront of private sector renewable 
energy initiatives in the Philippines with significant private 
investment as well as partnerships with USAID's energy program. 
 
------------------- ------------------- 
SunPower - A Leader in Solar Technology 
------------------- ------------------- 
 
2.  Ambassador and Embassy officials toured SunPower's manufacturing 
plant, a $300 million investment employing 1,200, on February 7. 
U.S. firm SunPower is an industry leader in solar power technology, 
manufacturing the world's highest-efficiency solar cells.  SunPower 
chose the Philippines for its facility because of the large 
semiconductor industry with technology similar to solar cell 
manufacturing; low labor costs combined with high levels of 
education and English proficiency; central location in a region of 
low-cost inputs; and, adequate protection of intellectual property 
rights.  SunPower's Vice President noted further that the initiative 
and resourcefulness of Filipino workers has produced extraordinarily 
rapid improvements in quality control and efficiency.  SunPower 
continues to invest in the Philippines, recently opening a separate 
facility for solar panel assembly (which was previously outsourced 
to China), and currently constructing a $600 million solar cell 
manufacturing facility that will triple SunPower's Philippine 
production capacity by mid-2007. 
 
3.  SunPower is partnering with USAID to bring solar power to 60 
rural schools in conflicted-affected areas of Mindanao, a corporate 
social responsibility project that demonstrates strong commitment to 
the Philippines.  Teaming with USAID's Alliance for Mindanao 
Off-Grid Renewable Energy Project, SunPower's Solar Energy for Rural 
Electrification and Development Project is contributing $500,000 for 
solar electrification, and is also working towards development of a 
training curriculum for solar power technicians.  This is one of 
several USAID partnerships with the private sector to leverage USG 
funds to bring renewable energy to Mindanao. 
 
--------------------------- 
Biofuels Leadership by Ford 
--------------------------- 
 
4.  Ambassador highlighted USG and partner promotion of alternative 
fuels at the Biofuels Caravan visit to a Ford manufacturing plant. 
The Caravan is a convoy of biofuels-powered vehicles organized by 
USAID in partnership with the Philippine Department of Energy, Ford 
Philippines, non-government coalitions, gasoline retail chains, and 
others.  The Caravan is crossing the Philippines to raise awareness 
of the benefits of biofuelS, and to kick off development of 
regulations to implement the new Philippine Biofuels Act of 2006. 
The recently-signed Act mandates a gradual phase-in of minimum 
percentages of biodiesel and ethanol in all vehicle transport fuel 
sold in the Philippines.  Passage of the Act is a major milestone in 
the promotion of cleaner alternative fuels, a major thrust of 
USAID's energy program.  The use of biofuels has the potential to 
reduce Philippine dependence on fossil fuels, reduce harmful 
emissions to the environment, as well as promote economic activities 
in the agricultural sector. 
 
5.  USAID officials presented the Philippines Fuel Ethanol Alliance 
an advertisement to run in movie theatres to raise awareness of the 
benefits of bioethanol.  In negotiation with cinema owners, USAID 
has already raised more than $200,000 worth of free cinema ad 
airtime since the formal launching in January 2007.  The Ambassador 
addressed the assembled guests, congratulating the Government of the 
Republic of the Philippines for passing the Biofuels Act and citing 
support for alternative fuels in President Bush's Energy Policy 
Initiatives (Reftel) 
 
6.  Ambassador and Embassy officials also toured the plant where 
Ford manufactures vehicles with flexible fuel engines capable of 
using gasoline blended with up to 20% ethanol, the only such 
facility within the ASEAN region.  Ford's $20 million investment in 
this manufacturing line, together with its support for the Biofuels 
Act and the Caravan place it at the forefront of the alternative 
vehicle fuels movement in the Philippines. 
 
KENNEY