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Viewing cable 08SANTIAGO1046, ENERGY MINISTER TOUTS RENEWABLE ENERGY GOAL TO VISITING

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Reference ID Created Released Classification Origin
08SANTIAGO1046 2008-12-01 17:26 2011-08-25 00:00 UNCLASSIFIED Embassy Santiago
VZCZCXRO9358
PP RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM
DE RUEHSG #1046/01 3361726
ZNR UUUUU ZZH
P 011726Z DEC 08 ZDK
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 4008
RUEHBU/AMEMBASSY BUENOS AIRES 1159
RUEHPE/AMEMBASSY LIMA 5826
RUEHAC/AMEMBASSY ASUNCION 3649
RUEHPE/AMEMBASSY LIMA 5827
RUEHBR/AMEMBASSY BRASILIA 0553
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
UNCLAS SECTION 01 OF 02 SANTIAGO 001046 
 
SIPDIS 
 
STATE FOR EEB/ESC/IEC, OES/STC, WHA/BSC 
 
E.O. 12958: N/A 
TAGS: ENRG SENV PGOV TRGY CI AR
SUBJECT:  ENERGY MINISTER TOUTS RENEWABLE ENERGY GOAL TO VISITING 
CODEL ENGEL, ASKS FOR INCREASED US TECHNOLOGY SHARING 
 
SANTIAGO 00001046  001.2 OF 002 
 
 
1.  SUMMARY:  During a Nov. 10 meeting with visiting members of 
Congress and the Ambassador, Energy Minister Marcelo Tokman 
highlighted Chile's dependence on foreign energy supplies and said 
the country intends to work towards a goal of meeting 20% of 
domestic energy needs through renewable sources.  Tokman requested 
greater sharing of renewable energy technology.  Chile is 
considering developing a nuclear energy program--a topic that was 
once taboo--and is interested in domestically-produced biofuels. 
CODEL Chairman Engel highlighted advances in alternative fuel 
vehicles in Brazil and Israel; Representative Maurice Hinchey 
promoted fuel cell R&D efforts by the Solar Energy Consortium in New 
York.  End Summary. 
 
 
Tokman Outlines Chilean Energy Dependence 
----------------------------------------- 
 
2.  CODEL Engel members Representative Eliot Engel(D-NY) and 
Representative Maurice Hinchey (D-NY), accompanied by the 
Ambassador, State DAS Joel Starr, CODEL staffers, and EMBOFF met 
Nov. 10 with Energy Minister Marcelo Tokman, Executive Director 
Rodrigo Iglesias, Head of Research Claudio Huepe, Director of 
Environment and Renewable Energy Jaime Bravo and Deputy Director of 
International Affairs at the National Energy Commission, Corissa 
Petro to discuss energy issues facing Chile and opportunities for 
increased energy cooperation. 
 
3.  Engel began by stressing that countries cannot be free until 
they have achieved energy independence.  Tokman then detailed the 
extent of Chile's dependence on foreign sources on energy.  Seventy 
percent of Chile's energy consumption is generated by fossil fuels. 
Of these fossil fuels, 70% are imported, including 98% of all oil. 
Approximately 24% of Chile's energy needs are met by natural gas, 
all of which is imported from Argentina.  Under the original supply 
contract between these countries, Chile was to receive 22,000,000 
cubic meters of natural gas per year.  Since 2004, however, the 
amount of natural gas received by Chile annually has fallen to 
between 500,000 and 2,000,000 cubic meters. 
 
Chile Wants 20% of Energy from Renewable Sources 
--------------------------------------------- --- 
 
4.  The Chilean government wants to meet 20% of Chile's energy needs 
with renewable sources, Tokman said.  International assessments of 
Chilean geography have defined it as one of the best source 
countries in the world for solar, wind, geothermal and hydropower. 
The vast majority of Chile's energy investments, however, continue 
to be in traditional sources of energy, e.g. coal-fired power plants 
and larger hydroelectric projects.  Tokman explained that, in order 
to reach the renewable energy goals the GOC has announced, the 
government is attempting to identify the barriers that have 
historically prevented further development of these renewable 
sources. 
 
5.  The primary barrier to Chilean renewable energy development is a 
lack of technology.  While Chile has ample renewable resources, 
there has been insufficient domestic development of the technology 
needed to convert raw energy materials into commercially viable 
sources of fuel.  Tokman believes that increased and rapid transfers 
of technology to Chile from wealthier countries like the U.S. would 
allow Chile to better utilize its own energy sources and allow 
Chilean entrepreneurs to contribute their skills and resources to 
R&D efforts. 
 
Chile Considering Domestic Nuclear Energy Program 
--------------------------------------------- ---- 
 
6.  The Chilean government recently began debating the pursuit of 
domestically-produced nuclear energy.  While historically taboo, a 
majority in the government now feel Chile cannot flatly reject the 
development of a nuclear energy program before the subject has been 
thoroughly analyzed.  A presidential advisory group on the issue has 
declared that nuclear energy is both safe and reliable now--provided 
all necessary infrastructure and safeguards are in place.  The GOC 
is currently working with the International Atomic Energy Agency to 
assess what Chile needs to create this infrastructure; Tokman 
believes the final report will be ready for the next Chilean 
government to review.  He estimates that current energy resources 
will continue to meet Chile's needs until approximately 2024 and, 
therefore, emphasizes that there is ample time for further 
discussion and careful development of a nuclear program.  However, 
he also emphasized that Chile should not unnecessarily delay this 
process. 
 
 
SANTIAGO 00001046  002 OF 002 
 
 
 
 
Biofuels and Solar Energy 
------------------------- 
 
7.  Engel highlighted the use of flex-fuel vehicles in Brazil and a 
program for plug-in hybrid vehicles in Israel.  Tokman stated that, 
until recently, it was illegal to sell gasoline-ethanol mixed fuels 
in Chile.  Today, a mixture of up to 5% is permitted.  While Chile 
is interested in pursuing biofuels as an alternative fuel resource, 
they are not currently considering large-scale importation of 
ethanol from Brazil.  Tokman stressed that Chile's focus is on 
biofuels that can be produced domestically, such as algae.  Chile is 
currently researching and testing methods of micro and macro algae 
cultivation for biofuel production. 
 
8.  Hinchey explained the growing U.S. focus on solar and geothermal 
energy as a means for establishing energy independence and stressed 
the incredible generation potential of both sources.  He expressed 
concern that strong opposition from oil and coal companies makes it 
politically difficult to further develop alternative fuel 
technologies.  He stated, however, that the Solar Energy Consortium, 
a partnership of universities and private companies in his 
legislative district, was working to expand fuel cell R&D to improve 
solar power storage.  Hinchey stated that this technology can be 
improved quickly, and could result in U.S. energy independence 
within a decade.  Tokman noted that with Chile's vast lithium and 
salt deposits--substances typically used in fuel cells--Chile is in 
an excellent position to contribute to these types of projects. 
 
Joint U.S.-Chile Energy Research and Development 
--------------------------------------------- --- 
 
9.  Tokman, Engel and Hinchey all stressed the importance of 
international cooperation in the development of alternative fuels. 
Tokman reasserted the need for strong partnerships between wealthy 
and developing nations with regard to energy development.  Citing 
Chile's political and economic stability, its commitment to the rule 
of law, and its vast natural resources, Tokman described Chile as an 
ideal partner for the U.S. in the pursuit of renewable energy. 
Tokman suggested the creation of pilot programs for testing 
U.S.-developed technology in Chile and stressed that the results of 
this kind of partnership could dramatically increase both countries' 
contributions to international efforts to develop alternative, 
renewable energy sources.  Engel and Hinchey invited Tokman to meet 
with them in Washington to further discuss bilateral energy 
cooperation. 
 
10.  COMMENT:  Chile's energy policies remain a bright spot for 
increased bilateral cooperation.  Following a full day of meetings 
with the President, Foreign Minister, and Congress, this 
congressional meeting provided concrete ideas on how to advance 
U.S.-Chile cooperation.  The Embassy plans to follow up on Tokman's 
interest in technology sharing by, inter alia, exploring 
possibilities for bringing one or more energy researchers to Chile 
via the Embassy Science Fellows Program.  End Comment. 
 
11.  CODEL Engel cleared this message. 
 
SIMONS