Phillip Paulwell, Minister of Commerce Science and Technology (standing right), receives a commitment letter from Señor Otacilio Coser Filho (standing left), director of the Coimex Group of Companies, Brazilian investors in the Petrojam Ethanol Plant. Also present are the Brazilian Ambassador to Jamaica, H. E. Cesar de Souza Lima Amaral (left) and Karl James, chairman of Petrojam Ethanol. - CONTRIBUTED
FOLLOWING ITS investment in the Petrojam Ethanol Dehydration Plant, Señor Otacilio Coser Filho, vice president of the Coimex Group of Companies from Brazil, says Coimex plans further investment in Jamaica's energy sector.
Coimex invested US$9 million in refurbishing of the ethanol plant out of a total project cost was US$10.5 million.
The Coimex Group is a 57-year-old family business, one of the largest sugar products traders in Brazil.
"We have never invested in a foreign country before," he said. "However, our financial analysts reviewed the business prospects for Jamaica and found the venture with Petrojam to be a solid investment for our company, with much scope for expansion in the near future."
He was speaking at the opening of the ethanol plant last week. Señor Coser Filho tendered a commitment letter to the Minister of Commerce, Science and Technology, Phillip Paulwell, assuring Jamaica of the Coimex Group's interest in further investment in the energy sector.
The Coimex Group of Brazil are 50 per cent investors with Petrojam Limited in the ethanol plant.
Under the terms of its three-year agreement with the Government, Coimex will provide the raw material required for the processing of ethanol, and the government will offer a waiver on import duties, government fees, cess, and taxes related to the importation of the material. There is an option to extend the agreement an additional two years.
"Coimex has been integral in the development of this industry in Brazil, and we are prepared to assist Jamaica," he said. "Coimex commits to the development of the local sugar industry for ethanol production in Jamaica. I believe in Jamaica, and in time, more investment and jobs will come to your country."
The Cabinet recently agreed to phase out the fuel additive MTBE and to replace it with ethanol.
REPLACED BY ETHANOL
Speaking during the Sectoral Debate in June, Minister Paulwell said if Jamaica makes that change that "At least, 10 per cent of the gasolene we consume can be replaced by locally-produced ethanol. The foreign exchange savings would be considerable. The necessary studies of the blending process and of the local motor vehicle fleet, are being undertaken with the assistance of Brazilian expertise in preparation for this change which should take place in 2007/2008."
The Petrojam Ethanol Dehydration Plant has the capacity to produce 150 million litres a year of ethanol.
The plant has already produced and shipped 9.5 million litres of ethanol to the United States, under the Caribbean Basin Economic Recovery Act.
The project began in 2004, with the signing of an agreement between Petrojam Limited and the Coimex Group, to refurbish the Petrojam Ethanol Plant, which had been out of use since 1998, due to production inefficiencies.
