Petrojam Limited will need to produce or source a total of 70 million litres of ethanol annually to supply the demand of Jamaica's gasolene market, says general manager Winston Watson.
Ethanol is being promoted globally as a substitute for the environmentally harmful methyl tertiary butyl ether (MTBE) a volatile, flammable and colourless liquid used in the production of gasolene.
Jamaica has replaced 10 per cent of MBTE with ethanol, starting with regular or 87 octane.
Last Monday, November 9, Petrojam also rolled out premium or 90 octane version of the product.
Up to that point, E10 87 accounted for 46 per cent of gasolene sales from the refinery since its availability at the pumps last year, said Watson.
motorists complaining
With the introduction of E10 90, only the ethanol blends and diesel are available at Jamaican gas pumps.
"... The cumulative effect of MTBE has been shown to be harmful to the environment. The rest of the world is on this step, and we are in step with them in the protection of our environment."
But concerns are being raised as to the ability of the energy ministry and Petrojam to meet the demand, while a number of motorists have complained of their engines being damaged by the new gasolene blend.
"This is not so," said Watson. "Ethanol is a detergent. When you put it in your car, it clears your piston head, it also cleans out the carbon build-up from the engine, so some motorists will have to clear their filters before they can maximise the benefits of the E10 products."
The blends are supposedly cheaper.
Petrojam on Thursday quoted ex-refinery prices at $69.04 for E10 87, and $70.48 for the premium blend. Diesel, however, was cheaper than the E10 90, at $70.21.
roll-out deadline
To meet the deadline for roll-out of ethanol-blended fuel and upgrade-supply capacity, Petrojam, using the services of US-based CB&I Steel Plate Structures, refurbished the storage and loading terminal in Montego Bay, including the installation of two additional tanks - one for ethanol with a capacity of 10,000 barrels per day, and another for 20,000 bpd of gas.
"E10 90 and E10 87 are being distributed from our Kingston and Montego Bay loading racks with no disruption," said Watson.
The refurbishment cost Petrojam US$300 million for both the Kingston refinery and Montego Bay.
According to Watson, the total volume of gasolene sold in Jamaica is 4.5 million barrels per year.
President of the Jamaica Gasolene Retailers' Association Trevor Barnes said he was satisfied that the refinery had the ability "to supply the entire country".
mark.titus@gleanerjm.com