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Unexpected allies
CEO of GB-Energy Texaco Bela Szabo (left) and Evergo’s President and CEO Dr Wayne McKenzie stand next to an electronic vehicle charging station.
Business, Business Observer, Business Observer Corporate Listing
Karena Bennett Business Writer bennettk@jamaicaobserver.com  
September 25, 2024

Unexpected allies

Gas stations partner with EV operators to power Jamaica’s green future

TRADITIONAL service station dealers and providers of charging infrastructure for electric vehicles (EVs) are finding ways to co-exist despite the threat that EVs pose to gas stations’ core revenue stream, according to EV charging stations provider Evergo.

“When we first went into the charging business, meaning ourselves and the Jamaica Public Service, we did not believe it would be supported by petrol stations. Total, BOOT, Rubis, Texaco supported us and so we started our charging network at petrol stations,” Evergo CEO Wayne McKenzie said at an e-mobility forum held recently.

“The owners saw it as more than just a business decision — they viewed it as a collective responsibility to the economy and the environment,” he added.

McKenzie noted that while gasoline still dominates, the shift to EVs is inevitable. “You’ll always have legacy customers who fill their tank because they need to get somewhere fast, but even the dealers recognise the industry is moving away from internal combustion engines [ICE]. It’s not just about adapting to the trend — it’s about positioning themselves for the future.”

Service station dealers have found ways to co-exist with the emerging EV market by offering more than just gasoline. Randall Brissett, associated with Fesco Service station in St Ann, emphasised that the addition of EV charging points isn’t just about replacing fuel pumps but about broadening services to customers.

“Installing EV chargers provides an additional service for them. It’s convenient for everyone,” said Brissett.

While a few service station operators may have initially been wary of the changes that EVs could bring, it has become increasingly clear that there’s a demand for both types of vehicles.

“We’ve set aside two spaces for EV charging, and while the traffic may not be overwhelming yet, we see customers coming in to charge once or twice a week. It’s a slow but steady shift,” Brissett added.

Project engineers like Reynardo Williams of Texaco in Ironshore, Montego Bay, view EV chargers as a seamless addition to the business model, drawing parallels between selling fuel and energy. Moreover, businesses are capitalising on wait times for EV chargers through their convenience stores, coffee shops, and workspaces near charging stations, turning downtime into opportunities for increased customer spending and engagement.

“We don’t just sell fuel. We also offer solar and energy solutions through a company called Sol Ecolution,” said Williams. “By having charging stations we cater to a new type of customer, and they often visit our convenience stores while charging — and that’s more business for us.”

Installing EV charging points hasn’t posed major logistical challenges either.

“It’s not an intrusive process; we’re just running some wires and conduits underground. The biggest hurdle was simply deciding where to place the chargers,” Williams explained.

As EV adoption accelerates globally, Jamaica is following suit. Globally, the EV market is projected to get to more than 30 million vehicles sold annually by 2030, with China, the US, and Europe leading the charge.

Locally, Jamaica has its own ambitious goals. Jamaica Public Service Company (JPS) predicts that by 2030 the island will have 50,000 EVs on its roads. This growth is supported by infrastructure development and partnerships like those between Evergo and gas stations, which are setting up charging networks to facilitate this transition.

“We are witnessing the beginning of a major shift in Jamaica’s transportation system,” said McKenzie. “EV adoption is not just a trend, it’s a necessary evolution in response to climate change and the rising demand for sustainable energy.”

For gas station dealers, embracing EVs is about future-proofing their business. According to Williams, they understand that the global energy market is shifting towards renewable sources, and with climate change and energy security concerns, this trend is irreversible.

“The Jamaican Government’s 2030 energy plan emphasises a more balanced energy mix, including solar and other renewable sources. By offering EV charging stations we’re not just keeping pace, we’re preparing for the future,” Williams pointed out.

Service station dealers have found ways to co-exist with the emerging EV market by offering more than just gasoline.

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