BY December, motorists will be able to access ethanol-blended fuel at service stations, as the Government moves to ease the effects of the spiralling cost of oil on the transportation sector.

As part of its overall strategy to reduce energy costs, the administration has also announced plans to use petcoke from its upgraded Petrojam refinery to fuel a 100-megawatt plant at Hunts Bay in Kingston. Petcoke is similar to coal, but costs less.

Energy Minister Clive Mullings made the announcement in his contribution to the 2008/2009 Sectoral Debate in Parliament yesterday.

First step: e-10

Mullings said the first step of the initiative would involve replacing 10 per cent gasolene at the pumps with ethanol or e-10.

More than 23 countries have implemented ethanol projects. Brazil started from in the 1970s in response to the first oil crisis.

Jamaica now has the capability to produce ethanol that satisfies world standards.

Mullings mentioned that Infinity Bio-Fuel, a company from Brazil, would be acquiring the Government's sugar holdings in September. Infinity is one of the leading producers of ethanol in Brazil.

He said sugar cane in Jamaica would be used to produce both sugar and ethanol.

Construction on a storage facility for ethanol in western Jamaica is expected to begin soon, according to the minister.

In this regard, he said the Government has allocated $300 million and equipment has already been ordered.

Mullings advised that experts had assured him that motor vehicles currently in the island could use e-10.

Educating the public

A public education programme will be launched soon to provide more details about the project.

Commenting on the use of petcoke to fuel the plant, Mullings said this would result in the removal of an old, inefficient generating plant.

"I am pleased to announce that the Government will own 40 per cent of this new plant," he said, adding that a joint venture agreement would be signed with the Jamaica Public Service Company shortly.

The price of a barrel of oil closed at US$140.67 yesterday, and there are projections that with the current rate of increase, Jamaica could incur US$3.5 billion (J$248.5 billion) in imports this year.