Petrojam closes ethanol production plant
Petrojam Ethanol Limited (PEL), a wholly owned subsidiary of Petrojam Limited, has ceased its production of ethanol, idling its 40 million gallon-a-year plant based in Jamaica.
The facility was shut down due to the lack of raw material being delivered from Brazilian trading company Coimex.
‘The government must accept full responsibility for this state of affairs’, said energy spokesman Philip Paulwell. ‘By unceremoniously terminating the arrangement we had with Coimex, our source of raw material has been extinguished.’
Until two years ago Coimex and PEL were joint partners under a 2004 agreement that saw equity in the plant being exchanged for wet ethanol. However when the time came to extend this contract the government shunned Coimex in a decision that saw a sugar deal with Infinity Bio-Energy falter.
‘The termination of the deal with Coimex came as a result of the misguided and botched excursion with Bio Infinity,’ explained Paulwell.
The termination of its partnership with Coimex and the collapse of the new deal with Infinity Bio-Energy have cost PEL in the region of $300 million (€222 million).
According the government the PEL refinery will be temporarily closed and begin producing a daily capacity of 116,000 gallons of ethanol this fiscal year.
The facility was shut down due to the lack of raw material being delivered from Brazilian trading company Coimex.
‘The government must accept full responsibility for this state of affairs’, said energy spokesman Philip Paulwell. ‘By unceremoniously terminating the arrangement we had with Coimex, our source of raw material has been extinguished.’
Until two years ago Coimex and PEL were joint partners under a 2004 agreement that saw equity in the plant being exchanged for wet ethanol. However when the time came to extend this contract the government shunned Coimex in a decision that saw a sugar deal with Infinity Bio-Energy falter.
‘The termination of the deal with Coimex came as a result of the misguided and botched excursion with Bio Infinity,’ explained Paulwell.
The termination of its partnership with Coimex and the collapse of the new deal with Infinity Bio-Energy have cost PEL in the region of $300 million (€222 million).
According the government the PEL refinery will be temporarily closed and begin producing a daily capacity of 116,000 gallons of ethanol this fiscal year.
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