BIOENERGY DEVELOPMENT IN JAMAICA: CHALLENGES AND

BARRIERS

Betsy Bandy (Ph.D. Geology) Ministry of Science, Energy and Technology

September 27, 2016 Email:bbandy@mset.gov.jm

Roadmap for National Development

Vision

2030

• “Jamaica – the place of choice to live, work, raise families, and do business.”

MEM’s

Energy Policy

• “A modern, efficient, diversified and environmentally sustainable energy sector…”

PCJ’s

Vision

• “To be a comprehensive supplier of energy, delivering a diverse efficient energy mix,…”

THE NATIONAL ENERGY POLICY

• Jamaica’s National Energy Policy (NEP) 2009-2030, was approved by Cabinet in June 2010, and accepted by Parliament in December 2010 as a White Paper. The NEP ‘promotes energy security, environmental sustainability of the energy sector, energy efficiency and conservation, energy sources diversification, and increased use of economically viable renewable energy sources’; with the aim of greenhouse gas emissions reductions.

• The NEP articulates that 20% of Jamaica’s energy mix will be generated

from renewable sources by 2030 of which bioenergy’s contribution will be substantial.

Jamaica Renewable Energy Targets

• The National Energy Policy has established Jamaica’s renewable energy target as 20% by 2030.

Indicator 2012

2015

2015 2030

Percentage of renewables in energy mix

11%

12.5%

15% 20%

ENERGY CONSUMPTION

• Approximately 95% of its electricity generation is from fossil fuel imports

• This as led to significant economic and environmental costs to the country’s GDP, and necessitating a transition to a more sustainable energy system.

• In 2011, approximately 15% of GDP was spent on petroleum imports

• Electricity prices for Jamaican residents are amongst the highest in the world at around 40 US cents per KWh (2011)

• The above mentioned are barriers to the sustainable development.

Sub-Policies

The NEP 2009-2030 has five (5) draft associated policies or addendum:

1. Renewable Energy Policy

2. Energy Efficiency and Conservation Policy

3. Biofuels Policy

4. Energy from Waste Policy

5. Carbon Trading Policy

A National Energy Action Plan 2013-2016 was also developed, which basically strategies the priority actions of the NEP. During the stakeholder consultation to develop same, bioenergy was not considered to be of high importance.

The Biofuels Policy

The National Biofuels Policy is being developed

to enable “a modern, efficient, diversified and

environmentally sustainable biofuels sector

that contributes to Jamaica’s long-term energy

security and socio-economic development.”

Goals of the Biofuels Policy • Goal 1: The economic, infrastructural and planning conditions

conducive to the sustainable development of the biofuels sector,

supported by inter-sectoral collaboration.

• Goal 2: Innovative and clean technologies facilitating a secure

supply of biofuels into local and national distribution systems.

• Goal 3: A well-defined governance, institutional, legal and

regulatory framework for the development of the biofuels

sector.

• Goal 4: Jamaicans have the technical capacity and knowledge

for the development, deployment, management and use of

biofuels.

The Energy –from- Waste Policy

The National Energy-from-Waste Policy has been

developed to ensure that “Jamaica is the regional

leader in providing affordable and clean energy

from waste contributing to a sustainable

future.”

Energy-from-waste is a win-win case for Jamaica and this

policy will enable us to generate clean energy using

appropriate technologies within a good regulatory

framework, expand renewable energy sources and create a

more sustainable environment through better management

of waste.

Goals of the Energy from Waste Policy

Goal 1: Jamaica creates economic infrastructure and planning

conditions conducive to the development of the energy-from-waste

sector.

Goal 2: Jamaica builds its energy-from-waste sector on the most

appropriate technologies that are environmentally-friendly, producing a

clean reliable renewable source of energy.

Goal 3: Jamaica creates partnerships between the energy sector and

the waste management and agriculture sectors to facilitate the

continuous supply of waste into energy-from-waste facilities

Goal 4: Jamaica has a well-defined governance, institutional, legal and

regulatory framework for the generation of energy from waste

Incentives/Disincentives for Development and

Utilization of Energy-from-Waste

JAMPRO is supportive of green energy investments and launched the

World Investment Report titled “Investing in a Low-Carbon Economy”

in 2010.

Specific incentives that may apply to EFW projects on a case by case

basis include:

Full duty and GCT exemption for importation of machinery and

equipment used on the project (excluding motor vehicles)

Tax credits for a number of years (to be negotiated)

Accelerated Depreciation benefits allowing full write-off of capital

costs associated with the acquisition of new machinery and

equipment items for renewable energy projects

Land at concessionary rates (where possible)

Energy from waste POTENTIAL

• Municipal solid waste Production:

1.4 m tonnes/annum

• MSW Growth: 6 % average per annum

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Legislative and Regulatory

Framework • National Energy Policy (2009 – 2030)

• E10 Mandate & ASTM E10 Fuel Standard

• Biofuels Policy (2010-2030) - draft

• B5 ASTM Biodiesel Fuel Standard – draft

• Vehicle Importation Tax Regime

• National Solid Waste Management Act and Regulations

• Natural Resources Conservation Authority Act and

Regulations

• Electricity Act, 2015

• Factories Act

• Public Health Act

• Companies Act

• Office of Utilities Regulation Act

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Legislative and Regulatory

Framework • National Energy Policy (2009 –

2030)

• E10 Mandate & ASTM E10

Fuel Standard

• Biofuels Policy (2010-2030) -

draft

• B5 ASTM Biodiesel Fuel

Standard – draft

• Vehicle Importation Tax

Regime

• Electricity Act, 2015

• Factories Act

• National Solid Waste

Management Act and

Regulations

• Natural Resources

Conservation Authority Act and

Regulations

• Air Quality Regulations and its

amendment

• Wastewater and Sludge

Regulations

• Public Health Act

• Companies Act

• Office of Utilities Regulation Act

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Jamaica Land Use

• Most of the forest areas are invaded by pioneer species (“secondary

succession”, “ruinate”) with very low economic value, not representing the

original forests’ native species.

• Agricultural land reaped in 2014 42,818 hectares (29,705 hectares of cane)

• Although Jamaica has the Forest Act (Government of Jamaica, 1996) only a

few new commercial plantations have been developed (~5,000 ha last 5 y)

Jamaica’s Land Use

Forestry lands : 300,000 ha

Mixed lands: 300,000 ha

Others: 500,000 ha

Biomass energy – Biomass main sources:

– Bagasse – Fuelwood

» Charcoal » Firewood

– Municipal Soild Waste » 62.2 % organic content (2015)

– In 2010 Biomass accounted for approximately 81% of renewable energy sources

– Fuelwood accounted for approximately 57%

– Biomass Assessment Study 2014 • Better estimate fuelwood consumption

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Biomass Demand

(*) Considering …. ton/ha-y

Charcoal Firewood Biomass

Total 263,996 524,916 2,284,891

Residential 168,434 333,791 1,456,682

Commercial 95,563 191,125 828,209

Total 214,534 426,562 1,856,790

Residential 137,206 271,906 1,186,613

Commercial 77,328 154,656 670,178

Total 313,520 623,393 2,713,524

Residential 199,661 395,676 1,726,751

Commercial 113,858 227,717 986,773

Minimum Average Maximum

1,850,209 2,284,891 2,684,083

9,552 11,796 13,857

Units (Tons/year)

Biomass Demand per Year

(tons per year)

Equivalence in Hectares of

Primary Forests

(Hectares per Year) (*)

Outcomes

Avg Consumption

Min Consumption

Max Consumption

Bagasse Resource

• The largest Jamaica’s agricultural sector is the sugarcane industry. Approximately 5% of Jamaica’s land is dedicated to growing sugarcane and the waste – bagasse – from sugar mills contributes to Jamaica’s energy portfolio.

• Objective is to increase the sugar cane production from 1.8 million tonnes in 2014 to 3.5 million tonnes 2018.

• The sugar cane sector in Jamaica consists of five privately-owned Companies with six Sugar Estates and Mills: Frome, Monymusk, Appleton, Everglades Farms (Long Pond and Hamden), Worthy Park and Golden Grove/St. Thomas Sugar. Appleton and Worthy Park have always been in the private sector's hands, two estates were, Pan-Caribbean Sugar Company Limited. Bernard Lodge is closed.

Sustainability of the Industry

• The viability of the sector is heavily dependent on the international price of sugar, the main product of the industry, along with the international price of alternate products of rum and bioethanol. Additionally, the local price of electricity may also contribute to the financial sustainability of the sector.

• The decline in viability of the major part of the industry has a negative impact on social conditions and employment in the rural areas of Jamaica.

Actions Required

• Financing

• Industrial Engineering Study

• Complementary Crops/Alternate Feedstock

• Increased cultivated Areas

• Green Cane and Mechanized harvesting where possible

• Improved varieties

INPUTS

• Estate repowered

• More biomass available

• Higher productivity

OUPUTS OF ACTIONS

• More electricity exported to the grid

• Ethanol/rum production increased

• Cost of production of sugar and by-products decreased

OUTCOMES

• Cost of Energy is lowered

• Dependency on petroleum products is reduced

• Sugar industry’s competitive situation is improved

Biogas Development

• The Scientific Research Council (SRC) of Jamaica through its Wastewater Management Unit was established in order to significantly reduce and prevent the adverse impact of wastewater from domestic, agricultural and industrial activities on natural resources and eco-systems.

• The UNIT provides communities, companies and individuals with environmentally friendly anaerobic wastewater treatment systems, along with technical assistance and training in the operation and management of these systems.

Biogas Development

• To date approximately 360 systems, including biodigesters, Up-flow Anaerobic Sludge Blankets (UASB) and 107 Biodigester septic Tanks (BST) have been implemented.

• The technology developed can treat from animal to solid organic waste, human and domestic waste, sewage and agro-processing.

• Biogas-Anaerobic Technology has been developed in Jamaica to promote the use of alternate sources of energy, utilize waste to provide organic fertilizer, biogas, whilst preserving a healthy environment

CHALLENGES/BARRIERS

• Estates owners are not convinced of the profitability of bio-ethanol production.

• Bio-ethanol is in competition with the production of sugar, bagasse for power generation. And molasses for rum (higher value with established niche markets).

• Continued low productivity of estates

• Resistance to green harvesting and mechanization

• Inefficient usage of bagasse for energy production, causing high energy cost and overall production cost

• Low pressure boilers

• Lack of low interest rate financing

• Regulatory conflicts and lack of pricing mechanism for locally produced bio-ethanol, along with compensation for bagasse to the farmers.

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CHALLENGES/BARRIERS

• Studies on the incineration of the waste (“Waste-to-Energy” plants) have not shown economically viable solutions in the past.

• Capital investments for such plants are generally high

• The high moisture content of the existing waste stream

• Separation of regulation and operations (Regulator is also an operator)

• Need for a complete waste characterization study

• Tipping fee agreement

• Lack of technical know how

• Lack of harmonization of policies among stakeholders

CONCLUSION

• The government and Industry stakeholders recognize that significant increases in cane production (improved varieties) is a critical first step for successful vertical diversification of the industry.

• Improved field management. • Bioethanol production will be strongly linked to the industry achieving

the expected target of 3.5 million tons of cane by 2018 (currently 1.3-1.4 million tons-2012/2013).

• Retooling and all round efficiency improvement including energy efficiency.

• Introduction of flexi-factory model locally.

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Thanks for your attention

Email: bbandy@mset.gov.jm/niconor.reece@pcj.com

Tel.18769204525

Mobile: 1876564-6560