Identifier
Created
Classification
Origin
09OSAKAKOBE24
2009-01-28 00:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Osaka Kobe
Cable title:  

Japanese Solar Powers Pin Hopes on Obama "Green

Tags:  BEXP EINV ENRG JA 
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UNCLAS SECTION 01 OF 02 OSAKA KOBE 000024 

SENSITIVE

SIPDIS

COMMERCE FOR ITA BRICKMAN AND SANTILLO

DOE FOR PI BISCONTI AND EE CHALK AND KIMBIS

E.O. 12958: N/A
TAGS: BEXP EINV ENRG JA
SUBJECT: Japanese Solar Powers Pin Hopes on Obama "Green
New Deal"

UNCLAS SECTION 01 OF 02 OSAKA KOBE 000024

SENSITIVE

SIPDIS

COMMERCE FOR ITA BRICKMAN AND SANTILLO

DOE FOR PI BISCONTI AND EE CHALK AND KIMBIS

E.O. 12958: N/A
TAGS: BEXP EINV ENRG JA
SUBJECT: Japanese Solar Powers Pin Hopes on Obama "Green
New Deal"


1. (U) Executives from the solar power divisions at Sharp
Corporation and Sanyo Electric Company have told us that
they plan to accelerate U.S. bound solar technology
investments, tie-ups with U.S. firms, and sales under a
presumed Obama administration policy emphasizing
alternative energy and eco-friendly economic development.
The Obama campaign promise to invest $150 billion in green
energies and introduction of numerical targets, along with
the recently extended U.S. federal tax credits for the
introduction of renewable energies, motivated Sharp and
Sanyo to accelerate investment plans even in the midst of
the global economic slowdown that has sharply reduced
revenue at both enterprises.


2. (SBU) In separate meetings, Hideto Yamaji, Global
Manager for Sharp's Solar Systems Group and Takayuki Hotta
from Sanyo Management Planning Department told us that
their companies see a unique opportunity to introduce the
solar technologies that the Obama administration will need
to meet the numerical targets made during the presidential
campaign of 10 percent of electricity generation from
renewable sources by 2012, and 25 percent by 2025. Both
Sharp and Sanyo are well aware of the Obama
administration's related campaign promise to use green
energy policies to establish sustainable new industries
that create new jobs. Recognizing that U.S. companies may
be preferred recipients of the promised $150 billion
strategic investments intended to catalyze efforts to build
a clean energy infrastructure, both companies are
accelerating plans to increase their U.S. investments and
establish strategic partnerships and tie-ups with U.S.
firms.

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Sharp Corporation
--------------

3. (SBU) Sharp plans to expand operations at its existing
20 MW solar panel manufacturing facility in Memphis,
Tennessee and has already discussed creating a wholly U.S.
based silicon to solar cell to solar panel manufacturing
infrastructure with U.S. companies including Hemlock
Semiconductor, Sun Edison, GE, Chevron and Fluor. Sharp,
says Yamaji, is also considering building a solar-based
power plant, hinting that Colorado or another location in
the western United States is under consideration, but he

raised the issues of power grid transmission infrastructure
and the lack of a feed in tariff for solar power production
as challenges to the plan.


4. (SBU) Sharp Executive Vice President Toshishige Hamano,
for whom Yamaji works, has been a central figure in Sharp's
increased focus on the U.S. market. In 2008, Hamano met
with state economic development officials and the Governors
of Colorado and Michigan and hosted Senate Energy and
Natural Resources Committee Chairman Jeff Bingaman's visit
to Sharp's state-of-art 300 MW solar cell production
facility near Nara. Since 2007, Sharp has also met with
officials from the States of Ohio, Kentucky, Tennessee and
Oregon to discuss solar power development in the United
States. Sharp?s new 1000 MW solar cell facility under
construction near Kansai International Airport was
scheduled to begin operation in spring 2010, but Sharp now
plans to begin operations by the end of 2009 to meet
anticipated demand.

--------------
Sanyo/Panasonic
--------------

5. (SBU) Sanyo Electric Company, which will be acquired by
Panasonic Corporation pursuant to a $9 billion agreement
reached in December 2008, recently broke ground on a
silicon ingot and solar wafer manufacturing facility in
Salem, Oregon that is scheduled to begin operation in

OSAKA KOBE 00000024 002 OF 002


October 2009. Sanyo representative Hotta told us that
Oregon State tax incentives were the primary reason for the
selection of Salem and that the plant will provide 200 new
jobs when operating at full capacity. Although Hotta says
Sanyo is considering establishing an integrated solar cell
and assembly plant in California, for the time being, the
silicon ingots and solar wafers produced in Oregon will be
shipped to Japan for processing into solar cells then
shipped to Sanyo's Mexico based solar cell assembly plant,
currently the main supplier of Sanyo?s U.S. bound solar
panels. Sanyo plans to increase production at the Mexico
plant by 250 percent in 2009 to 50 MW to meet anticipated
demand for solar panels in the United States. Panasonic
intends to invest an additional $1 billion into Sanyo
providing much needed fresh capital in Sanyo's areas of
expertise including solar technology.

--------------
COMMENT
--------------

6. (SBU) The Kansai area of Japan, where Sharp and
Panasonic/Sanyo are headquartered, enjoys one of the
world's largest concentrations of solar panel and solar
battery manufacturers. An Obama administration committed
to a "green new deal" with a renowned alternative energy
scientist confirmed as Secretary of the Department of
Energy represents a beacon of hope for these manufacturers.
In collaboration with FCS colleagues in Osaka-Kobe and
Embassy Tokyo, we will continue to expand our contacts with
other solar power players in Kansai, providing assistance
to them in exploring ways to make green investments to
create green jobs in the U.S.

DONG