UNCLAS SECTION 01 OF 02 PRETORIA 001469

SIPDIS

STATE FOR OES/EGC/BDEROSA-JOYNT, WFARNETH
STATE FOR OES/OES/STC/JROTTIER, OES/PCI/ESHAW
STATE FOR AF/S, AF/EPS, NP/NE
DOE FOR EE/RDIXON, MMILLS, NE-2.4
DOE/NNSA FOR NA-241 AND NA-243

SENSITIVE

E.O. 12948: N/A
TAGS: ENRG SENV KNNP TRGY EAID TSPL SF
SUBJECT: SOUTH AFRICA AND INTERNATIONAL PARTNERSHIP FOR
HYDROGEN ECONOMY, OTHER ENERGY ISSUES

REF: PARIS 1008

(U) SENSITIVE BUT UNCLASSIFIED, PROTECT ACCORDINGLY. Not
for Internet distribution.


1. (U) Summary: South Africa's Department of Science &
Technology (DST) has begun to play a stronger leadership
role on research and development (R&D) issues in energy. In
the upcoming months, DST will take the lead on key USG-
initiated energy initiatives, establish a new National
Energy Research Institute and develop a national R&D
strategy and action plan. End summary.


2. (SBU) EST Officer met on April 12 with Department of
Science and Technology (DST) Director for Resource-Based
Industries, Dr. Boni Mehlomakulu, to discuss DST's role and
interest in energy-related research and development. Dr.
Mehlomakulu said that a "single utterance" in a Cabinet
meeting in mid-2004 about "who knows what the Americans are
doing on hydrogen?" generated a great deal of high level
interest in the issue, and led to follow up briefings and
DST's taking on a leadership role.


3. (U) Dr. Mehlomakulu said that DST is now concentrating on
several aspects of energy research policy, in coordination
with other government departments. The first is to
establish a National Energy Research Institute (NERI) before
year-end. NERI will coordinate most R&D activities in
energy, and will focus on supporting research for the public
good, in particular, meeting energy needs of the rural
population. The lead on nuclear energy research will remain
with the Department of Minerals and Energy (DME). NERI will
work closely with existing research institutions, such as
the Energy Research Center at the University of Cape Town,
and will identify ongoing efforts and analyze gaps in
research that need to be addressed. NERI will locate its
offices in Johannesburg's Rosebank suburb, joining the site

of the Central Energy Fund and related energy organizations.
Over time, DST hopes that NERI will develop into an
equivalent to Mintek, a parastatal that carries out applied
research in minerals and metallurgy.


4. (U) DST also is working with DME to develop a National
Energy Research & Development Strategy and an accompanying
Strategic Action Plan for Energy. These documents will
identify priorities and help in mobilizing funding from
Treasury and other sources for energy research.


5. (SBU) DST will also take lead responsibility for South
Africa's participation in the Carbon Sequestration
Leadership Forum and efforts to join the International
Partnership for the Hydrogen Economy. Dr. Mehlomakulu noted
that late last year she received approval to do a "baseline
study" for hydrogen/fuel cells research, which led to
efforts to develop a road map and strategy to present to
Treasury for funding support. She indicated that South
Africa will not reapply for membership in IPHE until it has
further developed its strategy and identified funding
sources, and is in a position to "do it right"-probably not
until some time in 2006. She noted that her Minister voiced
embarrassment over how DME had handled the application
letter submitted to the IPHE Secretariat in January 2005
(Reftel).


6. (SBU) DST and the South African Fuel Cells Initiative
(which she described as a loose grouping of interested
parties who mostly complain about the lack of SAG funding
and strategic thinking on fuel cells) are jointly hosting a
South African Hydrogen/Fuel Cell Indaba in May 2005,
targeted at high level officials. USDOE has been invited to
make a presentation. DST's goal is to raise awareness and
generate feedback from academia and corporations on energy
research priorities. Later in the year, Dr. Mehlomakulu
hopes to organize a study tour to the United States for a
group of South African representatives; EST Officer offered
to work with Washington agencies to help identify useful
contacts and facilitate meetings.


7. (SBU) The Department of Minerals and Energy retains its
lead on nuclear energy. Dr. Mehlomakulu said that DST will
continue to play a supportive role, particularly relating to
the science & technology aspects of the Pebble Bed Nuclear
Reactor. She affirmed that DME has kept DST informed of
bilateral negotiations on U.S. proposed R&D agreements on
nuclear energy and nuclear materials safeguards
technologies.


8. (SBU) Comment: DST's stepped-up engagement on energy R&D
is a positive development. Although it is a young
department and is still building capacity, DST is relatively
apolitical and results-oriented. DST usually works well
with other government departments, given the cross-cutting
nature of science and technology.

9.(SBU) Brief bio notes: Dr. Mehlomakulu is young,
competent, and ambitious. She joined the Department of
Science & Technology in 2003. She studied engineering at
university, and said her passion was catalysis. She has
never visited the United States but her husband, an
environmental scientist with KPMG, studied there. She
previously worked for energy company SASOL, first at the
company's chemicals complex in Sasolburg, in the Free State
Province, and later at Johannesburg corporate headquarters
in SASOL Oil's strategic planning group, but said she left
in part because her white male colleagues resented her and
created a hostile and negative work environment; she said
she hopes to make her mark elsewhere and eventually return
to SASOL at a higher level in the future.

FRAZER