The Petroleum Corporation of Jamaica (PCJ) and the Jamaica Public Service Company (JPS) yesterday signed the agreement to construct the US$300-million 100 to 120 Megawatt petcoke generation plant at Hunts Bay, scheduled to begin operation in 2013.

Groundbreaking is expected to take place next year.
Less expensive than oil - which is currently used to generate 95 per cent of Jamaica's electricity - coke is a by-product of the refining process and will lower light bills on the island, said JPS president Damian Obiglio at the signing held at the Knutsford Court Hotel in New Kingston.

"It's not going to save the energy problem of Jamaica, it's going to add one sixth," said a cautious Obiglio. The extra 100-120MW will raise the JPS installed capacity to 1,000MW to meet the peak demand of 630MW.

The plant will be located next to the existing Petrojam refinery at Hunts Bay and will be supplied by the facility, which is being upgraded from 35,000 to 50,000 barrels of oil per day.

Also speaking at the launch energy minister Clive Mullings said that the project marked a new era of diversification and efficiency in the generation sector.

Mullings said that 2,000 jobs would be created in constructing the plant and the upgrade of refinery, which is expected to be completed in 2012.

However, the JPS and Petrojam have experienced a shortage of skilled labour in areas such as carpentry and welding and will be seeking to train more local workers.

Obiglio also admitted that there was still no pricing agreement between JPS, which is 20 per cent state-owned and Petrojam, in which the government retains 51 per cent in its partnership with Venezuelan state oil firm PDVSA.

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