By  Alex Weinreb   <alexw@modiin.muni.il>
Fri, 25 Jan 2008

I would like to suggest a new creation and trade name for part of the commercial area in Modiin-Maccabim-Reut. I suggest merging society’s need to promote employment together with preservation of the city’s environmental quality, and announce the establishment of:

“THE ISRAELI CLEAN-TECH CENTER”

Rationale & Vision

An employed resident who earns an honorable income can be free of worry about the environment. An unemployed resident who does not earn an honorable income cannot be free to worry about the environment. And therefore, it is clear to all of us that every resident needs help in finding work in general and preferably near his home in particular. There are many residents in Modiin-Maccabim-Reut who work in the field of high-tech and who, in order to earn a livelihood, must drive to other towns every day sometimes an hour and-a-half to two hours away in each direction. Others are unemployed altogether and frequently leave the city due to lack of local work opportunities in his/her profession.

In my opinion, the solution lies in aggressive marketing in order to attract “clean-tech” entrepreneurs, industry and factories to operate in the municipal commercial area and establish “the Israeli Clean-Tech Center”.

Regrettably up until today, there have been no marketing efforts in this sphere, and most of those working in the high-tech industry opened plants, industry and businesses in cities adjacent to Modiin-Maccabim-Reut such as Lod, Airport City, the new Terminal Park located next to Airport City, Yehud, Or Yehuda, Jerusalem, Petach Tikvah, Herzliya, Kfar Saba, Caesaria and Raanana. These towns succeeded with high-tech industries due to effective marketing done and being done these days, while Modiin-Maccabim-Reut remains empty of factories, industry and businesses in the field. And this is a pity.

What is “Clean-Tech”?

“Clean-Tech” or in Hebrew, “Environmental Technology Industry” are new technologies or products aimed at significantly reducing polluting emissions affecting the environment, or considerably purifying the environment from pollutants directly or indirectly. Clean-tech industry comprises those dealing with advanced and alternative energies which develop products that will provide the world with cleaner air, better quality industries for water purification, industries that provide sure-standing solutions such as solar energy from the sun, bio-energy industries, clean fuels, recycling plants, green chemicals industry, advanced agriculture, the field of water desalinization, non-polluting transport, biological alternatives for chemicals, biological fuels, polluting emissions treatment, green construction, proper irrigation, and more. It is estimated that in the past year, there were more than 200 issues on major world stock markets of companies that deal with clean-tech technologies! Major financial bodies have also entered the field of a healthy future. Ben Gurion University of the Negev is leading a variety of clean-tech research studies in Israel. Clean-tech is flourishing immensely. During 2006, there were 290 companies in the field, and another 400 were added in 2007. This industry is advancing at a spectacular rate.

The clean-tech industry is filled with challenges due to global warming, increased air pollution, lack of alternative fuels, and erosion of the earth’s natural resources. Clean-tech has attained high acclaim and support, even the State (the regulator) encourages its growth and companies and financial institutions are interested in investing in it.

Why is it worthwhile to establish clean-tech in Modiin’s business zone? TABA (land allocation registry) permits 4 types of activity in the commercial zone of Modiin-Maccabim-Reut, which covers an area of 1.5 million sq.m: high-tech industry, service centers (such as storage), offices and commerce.

Recently, a number of manufacturers arrived in the business area and established “service centers”. In my opinion, they will in fact set up huge storehouses for commercial purposes, and selected Modiin’s business area because of its attractive location in the center of the country, which is accessible to Highway 1, Route 443, Road 6 and Ben Gurion Airport, with access to the railway with lines from the south to Nahariya in the north, and more. While it is important that these warehouses are located here, I feel that they will not bring employment to the city’s residents, except for a small number of laborers. It is good to bring these businesses to the city, but in the right quantity, so that the increase in the number of storehouses will not in the end transform the area into one huge storage depot, whose activities will defer any attempt to call the area a high-tech or clean-tech center. One of the characteristics of high-tech industry is the concentration of production plants and entrepreneurs into one crowded area, but when many trucks pass through the area every day on their way to service centers – there will be a drop in scientific industries coming to the area. Therefore, I feel that we are at the 89th minute, when we have to designate and name part of the business area for high-tech industry, and part for “the Israeli Clean-Tech Center”, a move which will attract many businesses in the field to come to the area where many clean-tech industries are situated.

Modiin is an ideal location for the “Israeli Clean-Tech Center” due to the following facts: 1. Modiin-Maccabim-Reut was declared as Israel’s capital of environmental quality by the mayor and this designation matches the vision to establish clean-tech employment. 2. The city is a leader in many environmental issues such as the establishment of a recycling plant for construction debris, broad environmental education activities, underground communication and electrical cables, and more. 3. Many city residents have a high appreciation of the environment. 4. The existence of stringent environmental regulations regarding the opening of new businesses or factories within city limits. 5. The business zone is surrounded by open spaces, with the Ben Shemen Forest along the northern and western edges. 6. There is efficient and convenient access for vehicles to the business area. 7. The city has a human element that is interested in being employed close to home in the field of high-tech and clean-tech (the last survey conducted by the high-tech forum in Modiin showed that there are over 4000 residents in the city who work in high-tech!)

This, in my opinion, is a classic case of win-win where everybody gains: clean-tech industries will open factories and businesses in the commercial zone of Modiin-Maccabim-Reut, the clean-tech industry branch will be advanced to benefit the Israeli market, many city residents will earn their living there, the city will profit from commercial activity and municipal taxes - in short: employment and income on the one hand, and preservation of the environment on the other!

How can the vision of “Israeli Clean-Tech Center” be advanced? In order to promote the issue, I plan to meet shortly with the projects manager that the city employs in order to promote the business sector, Mr. Gabi Valikson, and interest him in my dream of establishing the “Israeli Clean-Tech Center”. In addition, I plan to meet with Prof. Shemansky and Tamir Ben Shachar who are preparing a strategy plan for the municipality to promote the business zone.

Two months ago, I met with Ms. Chen Altschuler, Managing Director and owner of the venture capital company Altschuler-Shacham, which invests in clean-tech industries such as the green hothouse in Haifa. Ms. Altschuler expressed great interest in helping to advance initiatives in the field of clean-tech in Modiin, and will assist in promoting the dream of an “Israeli Clean-Tech Center”.

I also met with Ms. Clara Oren, Managing Director of “the green hothouse” which was established in Haifa. I asked her to consider establishing another green hothouse here in the “Israeli Clean-Tech Center in Modiin”, and I plan to meet with her again in order to assess this option.

About two months ago at the “Watek” exhibition that was organized by the Ministry of Environmental Protection about water and environmental technology, I met with Mr. Nir Kedmi, head of the Economic Branch in the Ministry of Environmental Protection, which promotes governmental policy concerning clean-tech (environmental technology). He told me that there is over $400 million waiting to be invested in clean-tech industries in Israel! I also met with Dr. Doron Lavi from the Parto Engineering Company Ltd, which is formulating national policy for the government to promote clean-tech (environmental technology). I plan to interest them in helping to establish the “Israeli Clean-Tech Center” in Modiin.

In addition, there are capital venture funds that are already raising capital for industry in this field such as the Oasis Company, Tamarix and Natchers and others whom we should approach and fast. These companies are in the midst of raising hundreds of millions of dollars for the clean-tech industry in Israel. We should hurry and not hesitate.

The European Union will be investing 32 billion euro in 2007-2013 to promote global clean-tech technology. Even Sherri Arison has established an investment fund for this purpose. Recently, I met with a number of city residents who work in the field and who are interested in helping to promote the idea. These residents claim to have connections with companies in Italy and other places that have shown an interest in investing in a special center for clean-tech industry. In addition, representatives for two Canadian Funds - SDTC (sustainable development technology Canada) - arrived in Israel to assess investment possibilities in clean-tech at the level of 2 billion dollars! The Brazilian company Petrobras is also evaluating investing in the area of clean-tech in Israel.

In my opinion, “clean-tech” is the future of Modiin.

1. Continuation of the Vision to Promote Employment in Modiin-Maccabim-Reut and Preservation of the Environment I am interested in establishing a green hothouse in the Israeli Clean-Tech Center in Modiin which will help senior scientists in the Ministry of Environmental Protection and me to nurture clean-tech start-up companies on their way.

2. I plan to host the “Annual Israeli Clean-Tech Conference” every year in the new Cultural Center in Modiin where entrepreneurs, industrialists, hothouse technologies and so on will participate in a workshop to advance the issue in the city in particular, and in Israel in general.
3. I plan to organize at the same time an annual “Clean-Tech Employment Fair” where residents can seek employment in their field and even in industries that will be established in Modiin.
4. I suggest that the future “Israeli Clean-Tech Center” in Modiin will be built according to “green construction” standards and “green materials”. It is vital that factories only use green solar energy, use and apply green treatment to sewage and garbage, acquire alternative power and fuel sources, use biological chemicals to tend municipal gardens, recycled water, use of recycling devices and so on. The business zone will operate in the spirit of “clean-tech”.
5. I suggest that investors be encouraged to establish industries with municipal assurance to use their products by return from these companies which will manufacture them according to clean-tech technology, garbage treatment, water treatment and so on.
6. I suggest a budget be allocated towards a “Start-Up Fund” in order to encourage investors to come and invest in the Clean-Tech area in Modiin.
7. A building that will be used as “a technological green hothouse in Modiin” should be considered.

To summarize:

In my opinion, Modiin-Maccabim-Reut can fill a unique niche as the leading clean-tech industrial entity in Israel and will lead the country in this realm.

Sincerely,
Alex Weinreb
Deputy Mayor