Ethanol blends to fuel vehicles by December

Tag : ethanol fuel


BY December, motorists will be able to access ethanol-blended fuelat service stations, as the Government moves to ease the effects ofthe spiralling cost of oil on the transportation sector.
As part of its overall strategy to reduce energy costs, theadministration has also announced plans to use petcoke from itsupgraded Petrojam refinery to fuel a 100-megawatt plant at HuntsBay in Kingston. Petcoke is similar to coal, but costs less.
Energy Minister Clive Mullings made the announcement in hiscontribution to the 2008/2009 Sectoral Debate in Parliamentyesterday.
First step: e-10
Mullings said the first step of the initiative would involvereplacing 10 per cent gasolene at the pumps with ethanol or e-10.
More than 23 countries have implemented ethanol projects. Brazilstarted from in the 1970s in response to the first oil crisis.
Jamaica now has the capability to produce ethanol that satisfiesworld standards.
Mullings mentioned that Infinity Bio-Fuel, a company from Brazil,would be acquiring the Government's sugar holdings in September.Infinity is one of the leading producers of ethanol in Brazil.
He said sugar cane in Jamaica would be used to produce both sugarand ethanol.
Construction on a storage facility for ethanol in western Jamaicais expected to begin soon, according to the minister.
In this regard, he said the Government has allocated $300 millionand equipment has already been ordered.
Mullings advised that experts had assured him that motor vehiclescurrently in the island could use e-10.
Educating the public
A public education programme will be launched soon to provide moredetails about the project.
Commenting on the use of petcoke to fuel the plant, Mullings saidthis would result in the removal of an old, inefficient generatingplant.
"I am pleased to announce that the Government will own 40 per centof this new plant," he said, adding that a joint venture agreementwould be signed with the Jamaica Public Service Company shortly.
The price of a barrel of oil closed at US$140.67 yesterday, andthere are projections that with the current rate of increase,Jamaica could incur US$3.5 billion (J$248.5 billion) in importsthis year.