1. A U.S. Department of Energy Office of Science Laboratory Operated by The University of Chicago Argonne National Laboratory Office of Science U.S. Department of Energy Chair’s Update EGNRET 21, Shanghai, China Cary Bloyd

2. Pioneering Science and Technology Office of Science U.S. Department of Energy 2 EWG 25, June 19-20, 2003, Portland, Oregon The Energy Business Network (EBN) held their 9 th meeting in Portland June 17, 2002. The EBN agreed to hold their future meetings back to back with the EWG. The EBN will hold a special workshop on financing associated with their next meeting in Hong Kong, China in November, 2003. The EBN attended the Expert Group Chairs meeting

3. Pioneering Science and Technology Office of Science U.S. Department of Energy 3 EWG 25, June 19-20, 2003, Portland, Oregon The importance of financing was highlighted and will be included on the agenda for the 6 th Energy Ministers meeting. Financing activities are underway in EGNRET, EE&C, and EBN There were 31 projects passed on by the EWG: -14 to operational account (7 EGNRET) -15 for the TILF Special account ( 3 EGNRET) -2 self funded.

4. Pioneering Science and Technology Office of Science U.S. Department of Energy 4 EWG Energy Security Initiative The latest implementation plan noted the following roles of the EGNRET: Continue to support the APEC 21 st Century Renewable Energy Development Initiative, by contributing to the Initiative’s current projects and drawing on lessons learned from completed projects; and Continue to develop projects which contribute to non- petroleum and longer-term responses to energy security and which recognize the close link between energy security and sustainable development, including energy exploration and development, energy supply diversification, energy efficiency and conservation, alternative fuels including hydrogen, and high efficiency vehicles.

5. Pioneering Science and Technology Office of Science U.S. Department of Energy 5 EWG 25, June 19-20, 2003, Portland, Oregon The EWG also discussed the development of hydrogen and fuel cells in support of the Energy Security Initiative and noted appropriate collaboration could be carried out as part of EGNRET’s APEC 21 st Century Renewable Energy Development Initiative in coordination with the APEC Expert Group on Clean Fossil Energy EWG-26 to be held in Korea, December 1-5, 2003 Members accepted an offer by the Philippines to host Energy Ministers (EM6) in June 2004

6. Pioneering Science and Technology Office of Science U.S. Department of Energy 6 Other EWG Activities On Oct. 1, 2003, Wayne Calder tuned over his role as Manager of the EWG Secretariat to Aidan Storer for a period of 6 months. Following the 25th Meeting of the APEC Energy Working Group in Portland, USA, the EWG Lead Shepherd asked that the EWG Secretariat help further communication of the EWG and its activities by producing an EWG newsletter. The newsletter, which will be published every quarter (March, June, September, December) through the EWG website, provides information on the EWG, its work program and key activities, supported by web links for those seeking further information keep up to date with key developments. The first issue has been posted on the EWG website at: http://www.apecenergy.org.au/welcome/background/Newsletter/n ewsletter.htmlhttp://www.apecenergy.org.au/welcome/background/Newsletter/n ewsletter.html

7. Pioneering Science and Technology Office of Science U.S. Department of Energy 7 APEC Budget & Management Committee Meeting (BMC) Singapore, 22-24 July 2003 4 Operational Account EWG Projects Approved 1.Operation of APEC Energy Database and Analysis (US$20,000) 2.Potential for Growth of Gas as a Clean Energy Source in APEC Developing Economies (US$80,000) 3.Symposium on the Implementation of Government Energy Efficiency Programs (US$48,800) 4.Workshop on improving Energy Efficiency in APEC Mining Industry (US$44,000) -Total value $192,800 (11.9% of APEC Total: $1,624,445)

8. Pioneering Science and Technology Office of Science U.S. Department of Energy 8 APEC BMC 4 TILF Special Account EWG Projects Approved 1.Best Practice in Cross-Border Interconnection of Natural Gas in APEC Member Economies (US$162,760) 2.Carbon Dioxide Capture and Geological Sequestration Potential of the APEC Region, Phase 2 (US$153,600) 3.Alignment of Testing Procedures for Air-Conditioners and Heat Pumps (US$45,000) 4.APEC 21st Century Renewable Energy Development Initiative (Collaborative VI): Development of a Sourcebook of Hydrogen Codes and Standards for APEC Member Economies (US$125,550) -Total value $486,910 (11.7% of APEC Total: $4,177,417)

9. Pioneering Science and Technology Office of Science U.S. Department of Energy 9 APEC BMC Updated publication guidelines will be available in late 2003 The BMC will consider ways to streamline the APEC project process by reducing the complexity of the APEC project format As the value of project proposals far exceeded the Operational Account budget, BMC Members discussed at length the issue of how to address excess demand.