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### Viewing cable 08WELLINGTON391, SANDIA EXPLORES RENEWABLE ENERGY TRANSPORTATION

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08WELLINGTON391 | 2008-11-18 20:19 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington

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    VZCZCXRO4083
    PP RUEHAP RUEHKN RUEHKR RUEHMJ RUEHNZ RUEHPB
    DE RUEHWL #0391/01 3232019
    ZNR UUUUU ZZH
    P 182019Z NOV 08
    FM AMEMBASSY WELLINGTON
    TO RUEHC/SECSTATE WASHDC PRIORITY 5546
    INFO RUEHAP/AMEMBASSY APIA 0516
    RUEHBJ/AMEMBASSY BEIJING 0445
    RUEHRL/AMEMBASSY BERLIN 0088
    RUEHBR/AMEMBASSY BRASILIA 0129
    RUEHBY/AMEMBASSY CANBERRA 5328
    RUEHKN/AMEMBASSY KOLONIA 0033
    RUEHKR/AMEMBASSY KOROR 0023
    RUEHKL/AMEMBASSY KUALA LUMPUR 0202
    RUEHLO/AMEMBASSY LONDON 0216
    RUEHMJ/AMEMBASSY MAJURO 0135
    RUEHOT/AMEMBASSY OTTAWA 0340
    RUEHPB/AMEMBASSY PORT MORESBY 0764
    RUEHRH/AMEMBASSY RIYADH 0023
    RUEHSV/AMEMBASSY SUVA 0774
    RUEHNZ/AMCONSUL AUCKLAND 1798
    RHEBAAA/DEPT OF ENERGY WASHINGTON DC
    RHHMUNA/CDR USPACOM HONOLULU HI

` `

    UNCLAS SECTION 01 OF 02 WELLINGTON 000391

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: ENRG KRGY ELTN KGHG PREL NZ
    SUBJECT: SANDIA EXPLORES RENEWABLE ENERGY TRANSPORTATION
    PROJECTS

    ¶1.  (SBU) Summary: On October 31 - November 1, Sandia
    National Laboratories (Sandia) representatives Bruce Balfour
    and Dr. Blake Simmons visited New Zealand to solicit support
    for a Sandia  proposal to create a global network of
    public-private partnerships for the development and
    deployment of low-carbon transportation solutions to combat
    global climate change.  This was the first of several
    international visits planned by Sandia to introduce the
    proposal.  The New Zealand responses were positive though
    there were no solid commitments to HITEC, particularly given
    New Zealand's many competing priorities in this sector.  End
    Summary.

    Sandia Looking for Partners
    ---------------------------

    ¶2.  (U) Sandia National Laboratories' representatives Bruce
    Balfour and Dr. Blake Simmons visited Auckland, Rotorua and
    Wellington from October 31 through November 1 and conducted a
    series of meetings with GNZ officials, researchers and energy
    producers to explain, promote, and obtain support for a
    Sandia project entitled the Hub for Innovation in the
    Transportation Energy Community (HITEC).  Balfour and Simmons
    also sought to obtain energy-related contacts and an overview
    of renewable energy transportation projects within New
    Zealand.  Balfour's role within Sandia is to promote external
    partnerships and business development for Sandia; Simmons is
    the manager of Sandia's Energy Systems Department.

    ¶3.  (U) Sandia is a USG-owned organization within the U.S.
    Department of Energy that is operated under contract by
    Lockheed Martin.  Its facilities are located in Livermore,
    California and Albuquerque, New Mexico.  Sandia, born out of
    the Manhattan Project in 1945, is the largest of DOE's
    national laboratories with approximately 10,000 employees and
    a budget of USD 2.4 billion (2007).

    HITEC -- A Global Partnership
    -----------------------------

    ¶4.  (U) Sandia envisions HITEC will become a network of
    global public-private partnerships involving industry,
    governments, national laboratories, and universities with a
    goal to discover, develop, deploy, and commercialize
    innovative low-carbon transportation energy solutions.
    According to Balfour and Simmons, HITEC is in its formative
    stage, and NZ was the first country in which the concept was
    proposed to potential international partners.  Sandia also
    intends to visit and solicit participation from Australia,
    Britain, Brazil, Canada, Germany, Malaysia, the PRC, and
    Saudi Arabia.  In the initial phase of HITEC, Sandia is
    soliciting letters of support for the project and input for
    the make-up of a steering committee that would guide the
    structure, funding and work of HITEC.  In phase two,
    according to Balfour and Simmons, HITEC would use financial
    contributions from participating partners to leverage
    potential matching funds from DOE, and would seek to engage
    other USG agencies in HITEC projects.

    New Zealand Not Encouraging
    ---------------------------

    ¶5.  (SBU) Balfour and Simmons met with representatives from
    several GNZ ministries dealing with energy and
    transport-related issues: the Ministry of Research, Science
    and Technology (MoRST); the Ministry of Economic Development
    (MED); the Ministry of Agriculture and Forestry (MAF); and
    the Ministry of Transportation (MoT).  They also discussed
    the HITEC proposal with representatives of the National
    Institute of Water and Atmospheric Research (NIWA) and Scion
    Research Limited (both are GNZ-owned research institutes),
    with Meridian Energy Limited (a GNZ-owned electricity
    producer), and with Lanzatech New Zealand Limited (a

    WELLINGTON 00000391  002 OF 002

    privately corporation engaged in energy research and
    production).  Poloff accompanied Balfour and Simmons in all
    of their meetings, with the exception of NIWA, Scion and
    Lanzatech.

    ¶6.  (SBU) Balfour and Simmons said that the reactions to the
    HITEC proposal from NIWA, Scion and Lanzatech were
    enthusiastic and positive.  In fact, according to Balfour and
    Simmons, they appeared ready to sign letters of support
    immediately, but deferred commitment pending review by the
    organizations' leadership.  The response from Meridian was
    noncommittal and it requested another meeting with the Sandia
    representatives during their planned return to New Zealand in
    December 2008.

    ¶7.  (SBU) At the meeting between Balfour, Simmons, and
    representatives of the GNZ ministries with energy and
    transportation portfolios, the GNZ response was less
    optimistic.  Eric Pyle, the director of environmental and
    social programs for MoRST and the spokesperson for the
    ministries that met with Sandia, commented that New Zealand
    is a relatively small country with a limited budget and that
    the GNZ recently endorsed and committed financial support for
    the Energy Development in Island Nations (EDIN) project (a
    joint GNZ, USG and Government of Iceland venture to promote
    renewable energy development in island nations).
    Consequently, Pyle predicted that New Zealand would be
    unlikely to endorse participation in HITEC.

    Comment: Interested But Spread Thinly
    -------------------------------------

    ¶8.  (SBU) As with all multilateral initiatives, the GNZ is
    wary to sign up for fear of spreading its limited resources
    too thinly.  With the GNZ currently engaged in EDIN,
    officials are skeptical they have adequate personnel and
    funds to take on another initiative with overlapping
    objectives.  GNZ-owned research institutes and energy
    companies, however, have considerable freedom to engage in
    international partnerships without central government
    approval (especially with non-GNZ funds received from
    independent revenue sources), and they may decide to
    participate in HITEC.  End Comment.
    McCORMICK

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