Identifier
Created
Classification
Origin
09MELBOURNE132
2009-12-04 21:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Melbourne
Cable title:  

AUSTRALIAN BUSINESSES BULLISH ON U.S. GREEN ECONOMY

Tags:  SENV KGHG EIND ECON AS 
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UNCLAS MELBOURNE 000132 

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: SENV KGHG EIND ECON AS
SUBJECT: AUSTRALIAN BUSINESSES BULLISH ON U.S. GREEN ECONOMY

Summary
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UNCLAS MELBOURNE 000132

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: SENV KGHG EIND ECON AS
SUBJECT: AUSTRALIAN BUSINESSES BULLISH ON U.S. GREEN ECONOMY

Summary
--------------


1. (SBU) Australian businesses are looking to the United States for
investment opportunities in the green economy. At least three
Melbourne-based firms are considering opening or expanding U.S.
operations to take advantage of new markets and significant stimulus
spending in clean energy, recycling, and green buildings. The
President's green economy agenda appears to have captured the
imagination of more than just the U.S. domestic market. End
Summary.

Clean Energy
--------------


2. (SBU) Solar Systems, a Melbourne-based cutting edge solar energy
firm is pulling up stakes in Australia to seek "better
opportunities" in the United States. The firm's Managing Director,
Dave Holland told us in August that President Obama's green agenda
has made the United States a more attractive target for clean energy
investment than Australia. Holland went on to complain about the
difficulties of obtaining finance in Australia (an oft-heard refrain
here; Australia does not have a sufficiently large venture capital
market) as well as trouble obtaining promised public funding from
both the Victorian and Federal governments. Finance and project
development opportunities in Texas and California, he said, eclipse
those available in Australia. As if to confirm Holland's finance
gripes, Solar Systems has since gone into involuntary receivership
(Chapter 11),though is still operating its Dallas office in hopes
of expanding its U.S. market share. Solar Systems is only the
latest solar manufacturer to run into financial problems here -- in
2008, BP Solar, then the largest manufacturer of solar technology,
shut down its Sydney plant due to higher costs and the slow pace of
public support for solar development.

Recycling
--------------


3. (SBU) Australian recycling giant Visy also plans to rapidly
expand its U.S. operations. Visy's Chairman Anthony Pratt (who
divides his time between Melbourne, Atlanta and New York) sees his
company's future in the United States. In an October 26 meeting,
Pratt told Consul General that the President's green agenda and an
increasing eco-awareness among the U.S. populace have combined to
create fertile fields for Visy's biomass gas generation plants and
recycling technologies. Visy, which already runs a sizeable
recycling and packaging facility in New York City as well as in
Indiana, Georgia and Louisiana, will be looking to expand these
operations in the coming years.

Green Buildings
--------------


4. (SBU) Daniel Grollo, the CEO of Australia's largest commercial
builder Grocon, told Consul General on November 30 that he is
examining green building opportunities in the U.S. stimulus package
very closely. Grocon is building Australia's first 100 percent
carbon neutral building in Melbourne (Note: The building will offset
not just the carbon it emits, but also all of the carbon generated
by its construction. For additional information see:
http://www.pixelbuilding.com.au/. End note.) Grollo is setting up
operations in New York to capitalize on "undervalued" U.S.
commercial real estate assets. He believes Grocon can compete with
larger U.S. developers through cutting edge green building
technology as well as a unique focus on safety and funds
management.

Comment
--------------


5. (SBU) All three of these companies see real results flowing from
the President's emphasis on creating a green economy and are now
putting their money where their mouths are. All three executives
expressed unsolicited reservations about doing business in China,
indicating that they did not feel comfortable making capital
investments there. The United States, however, still provides
certainty for Australian businesses looking to expand their
operations abroad, and a focus on building a leaner and greener
economy in the United States is having a real impact on Australian
business investment decisions.

THURSTON