Clive Mullings, minister of energy, has revised the E10 project roll out date to October 2008. - File

Jamaica is in the process of searching out a supplier of equipment needed to dispense ethanol-based fuel, E10, at local gas pumps, a programme that Jamaica anticipates will cut $2.3 billion annually from its energy bill.

"We are now at the point where we are going to limited tender for some equipment and sourcing others ...," said energy minister Clive Mullings.

Mullings has set a new target date of October to have E10 available commercially to motorists.

The roll out requires state refinery Petrojam to retrofit its loading and storage facilities, Mullings said, while fuel pumps at service stations will also need special seals to prevent water absorption in the fuel, which is said to be more likely to happen with ethanol in the fuel, as opposed to MBTE-enhanced gasolene.

No definite date

But Mullings also indicated that legislation is being crafted around the programme, the elements of which he was due to discuss with marketing companies this month, but was unable to say when the bill would reach Parliament.

He indicated that the legislation was the main cause of the delay in getting the E10 programme off the ground.

Growing oil bill

Jamaica's oil import bill is said to be in reach of US$2.2 billion, and growing at an annual four per cent.

With oil prices on the rise, the replacement of MTBE in gasoline with 10 per cent ethanol is one of several initiatives under consideration to cut Jamaica's dependence on crude imports.

It is estimated that 70,000 litres of ethanol would be required annually to replace the 10 per cent MTBE in gasolene.

That amount of ethanol also requires an additional 30,000 acres of land for planting cane to be used as feedstock for the biofuel.

In a six-month pilot in 2006, E10 was tested on 70 government vehicles, which used Petrojam-produced ethanol instead of imported MTBE as fuel enhancer.

john.myers@gleanerjm.com