What Germany has to offer

1
What Germany has to offer
Market Information Seminar EU EAGA BizTech
Partnership

• Promoting Trade and Investment between the EU and
  ASEAN

Mr. Nikolaus Kraus Project Manager
ConnectAsiaEurope e.V.
2
Structuring

• ConnectAsiaEurope
• Economic relations Germany EAGA
• Trade Investments
• Malaysia, Philippines and Indonesia
• Perspectives
• Technologies made in Germany
• Renewable Energies
• Biofuels / BtL
• Renewables in EAGA and what Germany has to offer
• Invest in Germany

3
ConnectAsiaEurope e.V.

• Who we are
• CAE has its roots in the DIHK The Association
  of German Chambers of Industry and Commerce
• Our Goals
• promoting economic and technological cooperation
  between Asia and Europe
• transfer of know-how between the two regions and
  the exchange of information and experiences with
  counterparts in Asia and Europe
• Our Activities
• Export promotion, publications, seminars in
  Germany, delegations to foreign markets,
  co-operation meetings in Germany

4
Economic relations Germany - EAGA

• Trade
• Very dynamic development of trade between EU and
  the EAGA countries
• Germany is an important trade partner for the
  ASEAN region
• almost 30 of the EU exports in 2006 came from
  Germany
• about 20 of the EU imports in 2006 went to
  Germany
• Investments
• Germany is still underrepresented in the EAGA
  region
• In the past 10 years less than 3 of direct
  investments came from Germany

5
Industry Sectors

• Export Germany EAGA
• Electronics
• Machinery
• Chemical industry
• Automobile industry
• Import EAGA Germany
• Electronics
• Textiles Clothes
• Food industry
• Natural Resources

• Investments
• Manufacturing (Electronics, Chemicals, Machinery,
  Automobile)
• Services (IT, Banking etc.)
• Trade/Commerce
• Infrastructure (streets, railway, energy (incl.
  renewables)

6
FDI inflow to ASEAN (Source Countries, 2006)

• In 2006, Germany invested 1,59 Billion US
  (3,0 ) in the
• ASEAN region (2005 478 Million US)

7
FDI inflow to ASEAN (Target Countries, 2006)

• Tendency Growing Foreign Direct Investments in
  the ASEAN region since 2003

8
Foreign Trade Development Germany - EAGA
9
Imports EAGA - Germany
including electricity distribution and control
apparatus and other electronic equipment
(communication, tel. etc.)
10
Exports Germany - EAGA
Source Foreign Trade Portal of Bavaria
including electricity distribution and control
apparatus and other electronic equipment
(communication, tel. etc.)
11
Focus on Indonesia

• Germany is the most important trading partner in
  the EU
• Investments lack far behind the investments of
  other EU members (UK, France)
• Key industries for German-Indonesian business
  relations
• Agriculture
• Lumber/furniture
• Clothes/Textiles/shoes
• Electrical Industry
• Chemicals/Plastics
• Steel/Metal
• Infrastructure (incl. energy)

12
Focus on Malaysia

• Among EU countries, Germany is the largest
  investor and the one of the most important
  trading partners
• Key sectors for German-Malaysian business
  relations
• Electrical Industry
• Machinery
• Automotive Sector
• Chemicals/Plastics
• Agriculture
• Lumber/Furniture
• Environmental Technologies (Energy, Waste, Water)

13
Focus on the Philippines

• Germany is the 2nd biggest trading partner for
  the Philippines after the Netherlands
• Investments are partly declining because of
  instable conditions for FDI
• Key sectors for German-Philippine business
  relations
• Electrical Industry (Electronic goods, Electrical
  Engineering, IT)
• Machinery
• Chemicals
• Automobile Industry
• Agriculture/Lumber
• Infrastructure (incl. energy)

14
Renewable Energies made in Germany

• The German Renewable Energy Sector
• leads the world in renewable energy technology
• has advanced research programs
• puts special emphasis on the fields of wind
  power, solar energy, hydropower, geothermal,
  biomass and biofuels development
• Renewables made in Germany are ideal for
  applications all over the world (export quotas
  up to 80 )
• Renewable Energies from Germany have a
  great potential
• for EAGA Countries

15
Energy Mix in Germany

• Energy Mix in Germany Percentage of Renewable
  Energies
• present 6
• future objectives 12,5 in 2012, at least 20
  in 2020
• Renewable Energy Mix in Germany

16
Solid Biomass

• Solid biomass as energy source
• long tradition in Germany
• German companies are the world leaders
• Heating systems
• Combined Heat Power plants (CHP) Heat and
  Electricity
• Solid biomass
• agricultural and forestry produce
• in Germany wood pellet
• Potential in EAGA residues from agriculture /
  forestry !

• Market facts Germany
• 160 electricity plants (960 MW)
• 1.000 biomass heating plants
• 70.000 pallet boilers and ovens in homes

17
Biofuels

• German companies offer
• long experience in the manufacturing of biofuels
• globally tried and tested systems engineering
• research activities to increase efficiency (BtL)
• Great potential for EAGA
• 1st generation biofuels in Germany
• Biodiesel (vegetable oils, rape!)
• Bioethanol (sugar, starch, potatoes)
• often mixed with traditional fuels

• Facts
• Germany is the world leader in Biodiesel
  production (2007 ca. 5 Mio. tons)
• mixture ratio 5 for Biodiesel and Bioethanol
  2009 10

18
Biomass to liquid (BtL)

• BtL is one of the most promising technologies in
  the fuel sector
• Germany leads the way in these technologies
• Choren Industries already produces BtL fuels for
  VW and Daimler (SunFuel/Biotrol)
• First refinery of second generation biofuels in
  April 08
• Great potential of second generation biofuels
  for EAGA
• e. g. from agricultural residues from palmoil
  production

• Advantages
• reduction of CO2 by 90
• high quality and efficiency
• costs of 0,60 achievable

19
Biogas

• Biogas industry in Germany
• Power generation from gaseous biomass is greatly
  expanding in Germany
• clear trend towards larger, high-capacity systems
• German companies offer a wide range of building,
  operating and maintaining services/products
• Facts
• 650 new systems installed 2006
• Electrical capacity 1.100 MW
• agricultural residues and energy plants
  applicable

20
Wind energy

• Germany is a pioneer developing wind technology
• largest manufacturer of wind turbines and
  components in the world (w-market share 37 )
• increasing focus on offshore wind turbines
• trend towards high yield turbines
• export of technologies for manufacturing,
  installing and servicing wind turbines
• High potential for coastal states
• offshore windparks with German technologies
  already operating in UK, Ireland, Denmark

• Market facts Germany
• turnover 2006 7,2 BN. Euro
• 20.622 MW installed by the end of 2006 (world
  leader)
• Savings of 1 BN Euro/Year

21
Hydropower

• Oldest technology for power generating
• 20 of the worlds electricity is generated from
  hydropower
• Germany is the most important producer of
  hydropower technologies
• Export quota 80
• run-of-river, impoundment and pumped storage
  power plant
• 2nd largest renewable energy source in Germany
  after wind
• German companies full service suppliers

• Market facts Germany
• 3,5 of the gross electricity demand in Germany
• 4.700 MW installed, 7.500 plants

22
Solar industry

• The solar industry in Germany is booming
• Huge investments in solar technologies in Germany
  and especially abroad
• Solar cells, solar thermal collectors and solar
  thermal power plants
• Market facts
• 1,3 million power systems operating in Germany
• capacity (2006) 5750 MW
• market growth exceeds 50
• capacity of solar cells produced in 2006 500 MW

23
Geothermic Power

• Geothermal sources could supply
• Germany's electricity needs 600
• times over
• Construction boom of GP plants due to a new
  energy law in Germany
• geothermic electricity is supported by the
  government
• heat and electricity generation
• 2007 130.000 heat pumps and 4 geothermal
  electricity plants installed
• investments of 4 BN Euro in 150 geothermal power
  projects

• Indonesia and the Philippines
• huge potential for geothermic power generation
• German companies can contribute technologies

24
Renewable energies in EAGA

• Increasing energy demand
• Scarcity of fossil fuels
• Increasing Oil and gas prices
• Growing demand for energy from renewable
  sources
• Huge potential for renewable energies, such as
• - biomass, biofuels (agricultural products and
  residues)
• - solar energy (high solar radiation)
• - geothermic power (volcanic areas)
• - wind technologies (costal countries)
• - hydropower (small hydropower projects)

25
Renewable energies from palm oil

• Indonesia and Malaysia are the biggest producers
  of palm oil worldwide
• European union is the biggest importer of palm
  oil from EAGA
• Areas of utilization
• Agro-industry
• Biofuel
• Impact of growing demand from EU
• sustainable palm oil?
• perspectives

26
Why invest in Germany

• Leading economy Germany is Europes economic
  engine and worlds 3rd largest economy providing
  access to growth markets in the EU
• High productivity High productivity combined
  with declining unit labor costs are decisive
  factors for Germanys competitiveness
• Global Player Germany is world champion in
  exports as well as one of the top regions for
  foreign investors
• Excellent workforce Germany provides excellent
  workforce at steady wages
• Innovative Power Germany is undisputed leader of
  new patent registrations proving its innovative
  power
• Inviting incentives Germanys support offered to
  investment projects cash grants, low-interest
  loans, partnership programs, public guarantees,
  workforce development assistance, etc.

27
Why invest in Germany

• First class infrastructure Germany offers
  Europes densest and best-developed traffic
  infrastructure including roads, waterways, air
  routes, rail tracks and numerous reloading points
  ensuring on-time delivery
• Competitive tax conditions The corporate tax
  reform in 2007 improved the competitiveness of
  Germanys tax conditions giving a clear advantage
  over Japan, the US, Canada, Italy and France
• Secure investment framework Germany offers a
  secure investment framework with both judiciary
  and civil services at a highly professional level
• High quality of life An advanced health and
  education system, an all-encompassing transport
  and communications network as well as various
  sports and recreation opportunities contribute to
  a high quality of life