Mission Statement

Natural Gas and Cogeneration Technologies

Business Development Mission to Brazil

November 5 - 9, 2000

Overview

The U.S. Department of Commerce is supporting President Clinton's International Clean Energy Initiative through the development of a dynamic trade promotion program which emphasizes the positive contribution that American companies and U.S. exports can make to a cleaner environment and energy efficiency.

The Department's Clean Energy Trade Initiative focuses on developing market opportunities for U.S. companies in the energy supply, manufacturing, commercial, residential, transportation, and environmental technology sectors.

The objectives of the Clean Energy Trade Initiative include: increasing the visibility of U.S. companies as global leaders in "clean energy" technology, deepening relationships with key developing country policymakers, participating in the policy dialogue (regulatory reform, privatization, etc.) with government officials, expanding communications with private sector organizations, trade promotion, and long-term market development.

Mission Description

This mission will promote the export of U.S. natural gas and cogeneration technologies. It will take place from November 5 - November 9, 2000 in Rio de Janeiro and Sao Paulo, Brazil, and will be led by the Deputy Assistant Secretary for Basic Industries or a designee. Mission participants will include representatives from U.S. natural gas and cogeneration equipment and technologies companies; power industry design engineering firms; and utilities interested in entering or expanding their presence in Brazil's clean energy markets.

Commercial Setting

Brazil's total installed power generation capacity, approximately 61,329 megawatts (MW) in December, 1998, is expected to grow to 104,665 MW by 2008. Driving this growth is increased demand for electricity in northern Brazil and industrial and commercial interests' expansion in Brazil's south. ABDIB, the Brazilian Association of Infrastructure and Basic Industries, has inventoried 826 electricity sector projects worth $95.1 billion that are planned through 2003.

Brazil's thermal power installed capacity is predicted to rise from 5,277 MW in 1998 to 20,000 MW in 2008. Eletrobras, the former federal electricity monopoly now responsible for the integration and planning of Brazil's electric sector, states that natural gas fired power generation plants will comprise most of this increase. The Government of Brazil currently estimates that 29 new plants will be constructed by 2003. Though the construction of many of these plants was delayed in 1999 due to environmental licensing, natural gas supply and pricing issues, the Government of Brazil is negotiating solutions to speed their construction. Coupled with these new plants, investments of $500 million are planned by Brazilian electric utilities in 2000 for technological upgrades which will include substation automation, geoprocessing digital programs, and integration processes.

Brazilian industry can only supply about 40% of the technology needed for new natural gas fired power plants and the modernization and retrofitting of older oil burning thermal plants, thus leaving ample thermal power equipment and technology export opportunities for U.S. companies. Brazilian total imports of electrical power equipment (ELP) from the U.S. were approximately $69 million (21% of total ELP imports) in 1999 and are projected to be $99 million (30% of total ELP imports) in 2000 due to a projected increase in imports of thermal power generation equipment.

The Brazilian electric utilities, petrochemical, pulp and paper and food and beverages industries also present ongoing export opportunities for U.S. manufacturers and suppliers of cogeneration (CHP) equipment and technologies. Petrobras, the former Brazilian oil and gas monopoly, currently has eight cogeneration projects worth $3.2 billion in progress which will use steam from its refineries to produce approximately 4,800 MW of electricity. U.S. equipment suppliers, utility, engineering, procurement and construction companies are participating in at least five of these projects.

Mission Goals

The mission seeks to further U.S. commercial policy objectives and support the export of U.S. natural gas and cogeneration equipment and technologies to Brazil.

Mission Scenario

The mission will visit Rio de Janeiro and Sao Paulo, Brazil. The mission will expose the delegation to:

· Meetings with Eletrobras; BNDES, the Government of Brazil's Development Bank; the Rio de Janeiro State Secretariat of Energy; the Rio Industry Federation; Sao Paulo industry federations.

· Meetings with representatives of private sector utility; petrochemical; pulp and paper; food and beverage companies interested in cogeneration technologies.

Timetable

The mission is scheduled to arrive in Rio de Janeiro, Brazil on Sunday, November 5, 2000 and conclude in Sao Paulo, Brazil on Thursday, November 9, 2000. The precise schedule will depend on the availability of Government of Brazil and industry officials, as well as the specific goals and interests of the mission participants.

Criteria for Company Participation

.Eligibility

Eligible companies must demonstrate a capacity to deliver relevant equipment or services to Brazil.

Participating companies must be incorporated in the United States.

A company is eligible to participate only if the products and/or services that it will promote on the relevant mission are either (a) manufactured in the United States; or (b) if manufactured or produced outside the United States, are marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Companies will be selected on the basis of:

• Consistency of the company's market development goals with the scope and desired outcome of the mission as described.



• Past, present, or prospective business in Brazil.



• Diversity of company size, type, location, demographics, and traditional under-representation in business.



• Timely receipt of signed mission application, participation agreement and participation fee of $3,000, and $500 for each additional representative.



• Whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's foreign and commercial policy objectives.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and broadcast fax, e-mail, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows, etc.

An applicant's partisan political activities (including political contributions) are irrelevant to the selection process.

Applications

Application deadline: June 1, 2000. Applications may be submitted immediately to

Sam Beatty, Energy Division - Basic Industries, U.S. Department of Commerce, Room H4054, Washington, DC 20230; Telephone: (202) 482-4179; Facsimile: (202) 482-0170 or 5361; Internet: Samuel_Beatty@ita.doc.gov