Ministry of Industry, Commerce, Science & Technology (with Energy)

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Industry, Technology, Energy and Commerce Minister, Phillip Paulwell makes his contribution in the 2006/07 Sectoral Debate in the House of Representatives on Tuesday, June 20. At left is Derrick Kellier and (second left), Aloun Assamba.

A decision has been taken by the Government to establish an Energy Fund, through the Petroleum Corporation of Jamaica (PCJ). This is intended to raise some US$25 million over the next five years for undertaking energy efficiency measures and small-scale renewable energy projects and will commence its operations in the 2006/07 financial year.

Details of the Fund are included in a Ministry Paper that was tabled in the House on June 20, by the Minister of Industry, Technology, Energy and Commerce, Phillip Paulwell.

The energy fund will be established as a limited liability company, with its own Board, and will act as a wholesaling window for energy projects and will not be directly involved in lending. Funds will be retailed by approved financial institutions, and to minimise operational cost, it will have a small staff, which will be housed at the Development Bank of Jamaica.

So far, some $20 million has been committed to the start-up financing of the fund. The National Housing Trust (NHT) has committed $5 million while the PCJ has committed $15 million. A loan of US$10 million is also being obtained from the PetroCaribe Development Fund.

The Ministry Paper also outlines energy and environment conservation initiatives to be undertaken in 2007.

Among these initiatives are investigations into cogeneration and renewable energy. Emphasis on cogeneration will be on the sugar industry and could form part of the plan to produce ethanol at local sugar estates.

Cogeneration involves the simultaneous production of two or more useful forms of energy from the same fuel source.

Plans are also in train for the development of a 1.2 Megawatt hydropower plant at Laughlands, Great River in St. Ann. This will go hand-in-hand with the Ministry's bid to promote cleaner vehicle-fuel options. This entails engendering the general interest of the public in giving preference to the purchasing of efficient diesel fuelled vehicles. This move will include a pilot test for the replacement of MTBE (a fuel additive) by ethanol.

The budgetary allocation for the financial year 2006/07 is approximately $632.25 million.

Among the achievements for 2005 were the renewal of a crude oil contract with Nigeria, commencement of a Front End Engineering Design (FEED) as the first stage of the refinery upgrade and the implementation of energy conservation projects in four hospitals across Jamaica namely, Princess Margaret, St. Ann's Bay, Cornwall Regional and the Bustamante Hospital for Children in Kingston.

Furthermore, the PetroCaribe deal was concretised in 2005. Under this oil facility, the securing of oil supplies and loan benefits were secured for Jamaica.

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