The ethanol dehydration plant which was refurbished in 2005 by Petrojam Limited and Brazil's Coimex Group of Companies. - Photo by Phillip Lynch

The joint venture ethanol project between the state-owned oil refinery Petrojam and Brazil's Coimex Group has generated some US$120 million ($8.16 billion) in revenues since it began operation two-years ago.

A release issued by the Coimex Group yesterday said the plant had exported 250,000 cubic metres or 66.05 million gallons of ethanol to the United States over the period, representing 65 per cent of total ethanol exports from Jamaica to the United States (U.S). The U.S. has the largest ethanol market.

The Coimex Group has described the joint venture as very successful and head of Coimex's Alcohol Business Unit, Manfred Wefers, said the Brazilian company "was encouraged to consider new investments in that country (Jamaica)".

The 40 million gallon per year ethanol dehydration plant, which is run by Petrojam Ethanol Ltd., was rehabilitated at an estimated cost of US$10 million between Petrojam and Coimex. The venture represents the single largest investment in the Caribbean by the Brazilian group, which trades coffee, sugar and ethanol in the European Union, Asia, Japan, U.S., Middle East, Canada and the Caribbean.

Partnership extended

The company said a study being conducted in collaboration with Petrojam to double production capacity at the dehydration plant was at an advanced stage and noted that it has extended its partnership in the facility to 2011. Petrojam's managing director Winston Watson disclosed recently that the refinery was currently searching for a suitable location to build a new 60 million gallon dehydration plant to expand ethanol production.

Coimex also said it was collaborating with the Government in its plan to replace 10 per cent of the MTBE in gasolene with ethanol. It said it has been facilitating the training of Jamaican technicians in the use of the technology that was developed in Brazil to blend gasolene and ethanol.

The 59-year-old Coimex Group is among the top 100 businesses in Brazil. Last year the group recorded revenues of US$1.1 billion. The company currently operates businesses in logistics, infrastructure development and foreign trade. It is presently involved in the construction of a US$500 million port - the largest privately-owned port facility in the country.

Coimex is also among the nine companies recently shortlisted by the Government to bid for the assets of the Sugar Company of Jamaica, which owns and operates the five state-owned sugar estates.

john.myers@gleanerjm.com