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Richard McDonaldGroup Operations Manager

Petroleum Corporation of Jamaica

PETROLEUM CORPORATION OF JAMAICA

Positive Actions Biodiversity and Climate

Change

PETROLEUM CORPORATION OF JAMAICA

Positive Actions Biodiversity and Climate

ChangeConstance Tyson-Young

Environmental Specialist

May 22, 2007

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• Energy intensive economy with per capita energy use equivalent of 10 barrels of oil annually

• Almost totally dependent on imported oil, accounting for over 90% of its total energy use

• Exposed to oil price volatility and supply security issues, which threaten long term economic stability

• From 1998 to 2005 petroleum import bill increased from US$323 million to US$1.3 billion.

Jamaica’s Energy Situation

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Biodiversity and Climate Change• Biodiversity is the total variety of life on earth. It

is susceptible to climate change.• Climate change is occurring.• In Canada we see it in disappearing Arctic Ice and

Permafrost.• In SE Asia it is revealed by lethal storms and

floods.• The three warmest years on record have all

occurred since 1998; 19 of the warmest 20 since 1980.

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• National inventory of greenhouse gases in Jamaica shows that energy use caused more than 75% of emissions. This is in keeping with a global average of 70%.

• Strategy, therefore, is to reduce the adverse environmental impact of energy use by using cleaner technologies and improving energy efficiency.

Climate Change - Jamaica

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• Jamaica’s State Energy Corporation

• Established under the Petroleum Act of 1979

• To develop Jamaica's petroleum resources

• To enter all stages of the petroleum industry: negotiation of import contracts, refinery operation and transportation and sale of petroleum and petroleum products

Petroleum Corporation of Jamaica

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Petroleum Corporation of Jamaica

• Committed to reducing Jamaica’s heavy dependence on imported petroleum to meet its energy requirements

• Mandated to develop indigenous renewable energy resources for Jamaica, to prevent adverse effects on the environment and to assist the government in realizing the goals of the Jamaica Energy Sector Policy

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MISSION STATEMENT

The Petroleum Corporation of Jamaica, as mandated by the petroleum Act of 1979, will undertake the development and promotion of Jamaica's energy resources and will seek, where necessary, business partners through joint ventures with the private sector.

The corporation will conduct its affairs in a manner beneficial to Jamaica and will ensure that the environment is protected at all times.

The Corporation will act with integrity and will strive or excellence in all its operations.

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Petroleum Corporation of Jamaica

The PCJ is a head office for a group of companies:• Petrojam Limited• Petrojam Ethanol• Petroleum Company of Jamaica Ltd. (PETCOM)• Wigton Windfarm Limited

PCJ owns and manages 1054.5 hectare property at Font Hill in St. Elizabeth:Beach Park, Wild Life Sanctuary and farm

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PCJ – Biodiversity & Climate Change

PCJ manages the Jamaica Energy Policy. Major areas:

• Electricity Sector

• Transportation Sector

• Petroleum Sector

• Renewable Energy

• Energy Efficiency and Conservation

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PCJ – Biodiversity & Climate Change

Electricity• Improve efficiency of power generation to reduce fuel consumption and greenhouse

gases• Promote energy diversification in electricity and bauxite sectors from heavy fuel oils

(HFO) and ADO (Automotive Diesel Oil) to natural gas (LNG) and clean coal in order to reduce energy costs and greenhouse gases

Petroleum Sector• Upgrade Petrojam Oil Refinery to ensure energy supply and security and produce

cleaner fuel

Transport Sector• Introduce environmentally friendlier ethanol (10%) as an octane enhancer to

replace MTBE . Transform the sugar industry• Stimulate use of diesel powered engine versus gasoline to reduce fuel consumption

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PCJ – Biodiversity & Climate Change

Renewable Energy

• Develop renewable energy solutions via tax policies and institutional focus

• Install windfarm at Wigton in Manchester and planning for further development

• Explore feasibility of developing a hydropower plant at Laughlands Great River in St. Ann

• Explore and promote solar energy potential – water heaters, photo voltaic and solar drying

• Explore its bio-energy potential by commissioning a feasibility study for generating biogas from its operations at the Font Hill Forest Reserves. Plans for construction of a 150m 3 are in progress

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23 Wind turbines, each producing 900kW, were installed at Wigton, Manchester, Jamaica in late April 2004.

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PCJ – Biodiversity & Climate Change

Energy Efficiency and Conservation

• Intensify thrust to energy efficiency and conservation through the “Use Less Pay Less” public education campaign and through the implementation of specific projects primarily in public hospitals and learning institutions.

• Projects were jointly financed by (GOJ/UNDP) Public Sector Energy Efficiency Programme, some J$21 million was expended between 2006 and 2007

• Carry-out energy audits, preventative maintenance programmes, photovoltaic lighting, solar water heating, lighting efficiency improvement, power factor correction and training.

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PCJ – Biodiversity & Climate Change

Energy Efficiency and Conservation Cont’d

• Five (5) major public hospitals, twelve (12) public health clinics and nine (9) schools benefited from the programme. One private sector organization also received direct technical assistance.

• Promote the use of compact fluorescent lamps as a significant conservation tool.

• Give prominence to the prospects for renewables in Jamaica through intense public education campaign: radio placements, articles and print advertisements, seminars, energy conservation exhibitions, schools poster and adult essay competitions, energy conservation-exposition and lectures.

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Renewable Energy Potential in Jamaica

Source Existing Capacity Estimated PotentialWind 20.7 MW 60 MW

Hydro 23.8 MW 81.7 MW

Bagasse 940,000 boe 68 MW

Bio ethanol 40 million gallons 91 million gallons

Waste-to-energy 55 MW est.

Biogas 840 – 6,300 MWh est. TBD

Solar 3 MWh est. 75 – 100 MWh

Photovoltaics 600 w est. 1.0 MW

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Clean Development Mechanism and Wind under Kyoto

• Average data pollutant savings per kWh from wind versus conventionally generated electricity are: 862 g CO 2 , 10g SO 2 3g NO 2 (BWEA, 1998)

• - The CO2 savings are most significant

• There is a market for trading of CO 2 avoided as a result of operating renewable energy facilities

• WWF has been registered as a CDM project and will trade its certified emission reductions (CERs).

• Cost : 5.5 Euros per ton of carbon dioxide saved between 2004 and December 2012 US$ 3.1 million over nine years by generating electricity from wind

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Centre of Excellence for Renewable Energy

• Established November 2006

• Build the capacity for the development of renewable energy and provide a forum for technology transfer and operational management practices

• Serve as a focal point for training professionals, policy makers, investors and the general public

• Provide clearing-house facility for business opportunities in renewable energy

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Conclusion

Energy efficiency and conservation combined with the use of renewable energy can be far reaching in achieving sustainable development.

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Thank You.Thank You.