High prices and tight supply in the global petroleum and crude oil markets have accelerated moves by governments to seek ways to diversify their energy base.

In Jamaica, with the fuel import bill now equal to the nation's earnings from exports, sustained high prices for petroleum energy have caused rapid increases in fuel, utility bills and consumer goods prices.

Parliament has taken the decision to move immediately to an ethanol-blended fuel for the transportation sector.

Benefits from the introduction of an ethanol blend of gasolene will be significant, as it will provide energy from a locally produced renewable source.

Infrastructure in place

Initially, the blend of E10 will replace petroleum-based MTBE now used as an octane enhancer in gasolene. It is estimated that some 77,000 litres of ethanol will be required to meet the blending requirements for supply of E10 to the local market.

As the Ministry of Energy intends to move rapidly to an E25 blend, the demand for ethanol will more than double.

Replacement of 25 per cent of petroleum products imported for the Jamaican transportation sector could significantly reduce Jamaica's crude oil import bill, if feedstock for the product is produced locally.

Local sources

The availability of infrastructure for ethanol dehydration from local sources is assured, as more than 100 million gallons of dehydrated ethanol is produced by the two main ethanol plants in Jamaica.

Feedstock for the manufacture of ethanol is imported from Brazil. For home-grown feedstock for the local ethanol market, approximately 30,000 hectares of additional sugar plantations will be needed to cultivate sugar cane.

Ethanol, when blended in gasolene, is ranked as the best fuel for the transportation sector.

Global warming

As a fuel in automobile engines, ethanol burns clean, leaves little residue in engines and reduces harmful carbon dioxide from tailpipe emissions, believed to be partly responsible for global warming.

E10 blend of gasolene will reduce harmful emissions by up to 30 per cent. This has economic value, as under the Kyoto protocol, clean air, resulting from conscious moves by nations to cleaner energy can be traded for carbon credits on the international market.

Economic benefits

Jamaica will save foreign exchange by replacing imported petroleum-based MTBE in gasolene with locally grown and produced ethanol.

Jamaica will continue to earn foreign exchange from the export of locally manufactured ethanol.

The country will benefit from trading carbon credits for clean air from the use of a biofuel in the transportation sector.

Locally produced ethanol will increase employment in the agricultural sector.

Increased investment in the sugar cane industry will improve infrastructure.