Jamaica Still Exploiting CBI Biofuels Incentives 

The Government is steadfast in its thrust to develop the local biofuels industry, producing ethanol from local feedstock and boosting exports of this highly valued fuel, under the Caribbean Basin Initiative (CBI).

Minister of Energy and Mining, Hon. James Robertson, said that it is toward this end that Jamaica accepted an invitation to join the Memorandum of Understanding (MoU) between the United States of America (USA) and Brazil, for increased cooperation on biofuels last year.

The island is among the newest partners in this US/Brazil biofuels collaboration. Others include Guatemala, Honduras, Guinea-Bissau and Senegal. Under the MoU, the countries will work to develop their biofuels industry and reduce dependence on imported fuels.

Mr. Robertson said Jamaica exported 80 million gallons of ethanol to the US, and 110 million in 2008. However, he said, the CBI countries only met 71 per cent of the total 2008 quota of 452 million gallons.

Between January and July 2009, Jamaica exported some 51 million gallons of ethanol to the USA. This represents just 15 per cent of the 2009 quota and, according to Mr. Robertson, is an indication that less than half of the quota for the year will be met.

However, Jamaica earns some $140 million annually from ethanol exports to the US and has, what the Minister says is, "an excellent relationship with other ethanol exporting countries".

The CBI is a trade agreement between the USA and Caribbean and Central American countries. It was originally launched in 1983, under the Caribbean Basin Economic Recovery Act (CBERA), and was significantly expanded in 2000, under the US-Caribbean Basin Trade Partnership Act (CBTPA).

The agreement grants participating countries duty-free access for some products to the US market, and exempts them from the 54 cents per US gallon tariff on ethanol. Jamaica is among a group of only eight countries that benefit from the CBTPA.

Meanwhile, negotiations to establish a Liquefied Natural Gas (LNG) sector has advanced, as the Government, led by the Energy Ministry, seeks out cheaper and varied energy sources. LNG has much lower air emissions than other fossil fuels, such as oil or coal.

In September, Mr. Robertson said there would soon be a direction on the way forward for LNG, as a number of interested companies have visited Jamaica to examine aspects of the LNG build-out and roll-out plans.

In advance of the LNG agenda, Cabinet gave approval for the use of Floating Storage and Regasification (FSR) units to import LNG for local use last week.

Once this initiative is fully realized, it will save on fuel costs for consumers and the government as a whole. He added that LNG is seen as the fuel choice capable of satisfying the objectives, while having the potential to grow the economy through increased competitiveness in global markets.

 

Source: Jamaica Information Service (JIS)