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Business
June 29, 2010

Cryogenic energy not off the table, but not on right now

CRYOGENIC units that were initially envisaged for the liquefied natural gas (LNG) project to capture and harness refrigeration properties over converted the natural gas back to its natural state, is not being included in the first phase of the project.

Energy ministry officials yesterday cited high upfront cost as a deterrent but have not ruled it out.

“You can do cyrogenic unit if you use an FSR (floating storage and regasification) unit but the cost of doing it and the advantages and benefits to be gained do not warrant you waiting on it to be part of the upfront phase I,” said Energy Minister, James Robertson at the Observer’s head office in Kingston. “Neither does it give you the level of economic return that would make it viable at the (capital expenditure) side. At this point I would not be willing to say yes or no, it is not going to be late, it can always be added at the back end.”

Slated to be completed in the first quarter of 2013, the FSR unit will feed natural gas to alumina plants such as Jamalco, located in Clarendon, and to power generators operated by Jamaica Public Service Company (JPS) and private power companies like Jamaica Energy Partners (JEP).

Interestingly, while being converted from the cold liquid, stored at 160 degrees below zero degrees Celsius for ease of transportation, to the warm gas, around 30 degrees above zero, the cooled air that is given off can be used for refrigeration and air-conditioning.

In turn, capturing this cryogenic energy to could feasibly promote small and medium size businesses and creating employment opportunities based on low-cost energy in food processing, cold storage, industrial gases, mineral processing, petrochemical and high end metal fabrication.

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