Tag: jamaica

IDB Lead Investment Officer Stefan Wright speaks at the Gleaner Editors’ Forum on Tuesday, May 9, 2017.

The Inter-American Development Bank (IDB) said it would consider financing projects for waste to energy in Jamaica, but cautioned that the cost of doing so would have to be around US$0.12 per kilowatt hour for it to make sense to consumers.

“We could finance waste to energy,” but “at the end of the day, it’s going to come down to the cost. I think that’s a key component which I don’t know if it has been fully analysed,” said lead investment officer at the IDB, Stefan Wright.

He said that if solar energy was currently being produced at US$0.12/kWh,”it makes no sense financing waste-to-energy at US$0.20/kWh because JPS [Jamaica Public Service Company] won’t buy that.”

Renewable energy is a focus of the Inter-American Investment Corporation, the private-sector arm of the IDB which last year reorganised three of its four private-sector windows specifically to be more strategic, align with the IDB’s country strategy and become more effective in terms of how the Bank deploys private sector resources, Wright told a Gleaner Editors’ Forum on Tuesday.

“We are working with entities in Jamaica now to finance renewable energy projects,” said Wright, noting that Jamaica has done a good job in bringing more renewable energy on the grid and reducing the 90 per cent oil bill, “and we are very much interested in partnering with those entities who want financing”.

Referring to Jamaica’s main garbage-disposal sites, including the Riverton dump in Kingston, Wright said it would be good to be able to use those resources in a more environmentally friendly way, “but at the end of the day it must make sense for consumers”.

He also pointed to the Government’s efforts, announced by Prime Minister Andrew Holness with the formation of an enterprise team in October last year, to manage the State’s waste-to-energy programme, contracting out of solid-waste management and collection and divestment of the Riverton City landfill.

At that time, Holness was quoted as saying that the Government had received more than 30 expressions of interests to either bid on the waste-to-energy programme or to collect solid waste or both.

“We stand ready to finance projects which come out of that,” said the investment officer, noting that after the tender process is completed, entities wishing to invest in the facility would seek financing from the IDB to make the business a reality.

Key Requirements

However, he pointed out that one of the key requirements is that such entities engaging in such energy supply programmes must obtain power purchase agreements from the JPS.

“So we are certainly willing to help to participate in that,” he said. “We will finance any sustainable project which is helping to generate economic growth,” he added, noting that the IDB was offering loans between US$5 million and US$200 million per project, “and we don’t have any country limits now in terms of what we can finance”.

Wright said “we are looking at a number of projects and renewable energy and waste energy is something that we would certainly consider.”

General manager for the IDB’s Caribbean Country Department, Therese Turner-Jones, who also participated in the forum, said she has been to a series of renewable-energy conferences where private-sector interests offer various solutions, “and they look at the Caribbean as being ripe for investment because we’ve done so little”.

Comparing Jamaica with Hawaii, where the goal is 100 per cent renewables, Turner-Jones, noted that the US state is “almost there”.

“So it’s possible (for Jamaica) to do it. The technology exists,” she added.

JPS, which controls power distribution, is now reporting that renewables should account for around 12 per cent of its electricity production this year. Jamaica is aiming for a mix of 30 per cent by 2030.

Gleaner

JAMAICA’S Professor Michael Taylor has made the Intergovernmental Panel on Climate Change (IPCC) team, tasked to deliver what is a vital report for the Caribbean and other small island developing states (SIDS), in the fight against global climate change.

Taylor was invited to serve as one of three coordinating lead authors for the third chapter of a special report on 1.5 degrees Celsius as a global greenhouse gas emissions target.

The IPCC was mandated to produce that report, largely through lobby efforts led over years by SIDS, in the race to curtail emissions that fuel the changing climate that could devastate them.

“Chapter three merges what happens with the physical impacts of climate change, like changes in temperature, rainfall, and so on, with the impacts on ecosystems, natural systems and on human beings,” Taylor, a celebrated local physicist and head of the Climate Studies Group Mona, told The Gleaner on Tuesday.

“It is actually the first time they are merging those two things in one chapter. Normally, it would be Working Group I (WGI) looking at the physical side and WGII on the physical impact. Chapter three now will look at both the scientific basis for 1.5 and what are the impacts on managed systems as well as human beings,” he added.

Taylor is joined by two other coordinating lead authors and a team of 20 lead authors to deliver that chapter.

“We will also coop contributing authors with special expertise as needed to lead the authorship of that chapter,” noted the head of the Physics Department at the University of the West Indies, Mona.

Taylor’s research interests include understanding and quantifying the Caribbean region’s vulnerability to climate change.

Quizzed as to his feeling on being asked to serve, the scientist said: “It is a real honour; I appreciate the honour.

“It is not just an honour for me personally, but also for Caribbean science that it is being recognised in such a way. But it is an overwhelming task that is being asked so I also feel extremely overwhelmed but extremely grateful for the recognition,” he added.

 

GLOBAL RESPONSE

 

The historic Paris Agreement, which charts the course for the global response to climate change, looks to hold “the increase in the global average temperature to well below two degrees Celsius above pre-industrial levels” and pursue “efforts to limit the temperature increase to 1.5 degrees Celsius above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change”.

The inclusion of 1.5 was hard-fought-for by Caribbean and other SIDS aided by the regional campaign dubbed “1.5 To Stay Alive”.

The campaign run primarily in the lead-up to and during the 2015 climate talks in Paris where the agreement was adopted involved regional players such as the Caribbean Community Climate Change Centre, communication NGO Panos Caribbean, the Caribbean Development Bank, the Saint Lucia Ministry of Sustainable Development, the Regional Council of Martinique, and the Organisation of Eastern Caribbean States.

 

SPECIAL INTEREST

 

Among other things, it saw the establishment of a website, Facebook page, and Twitter account to promote Caribbean negotiating positions and to expose the region’s climate challenges all the while calling for the holding of temperatures to 1.5 degrees Celsius.

A theme song the collaborative effort of Caribbean artistes, including Panos’ Voices for Climate Change Education’s singer Aaron Silk was also released.

“The 1.5 is a kind of threshold of viability for small islands going into the future. So this report, I think, the small islands have a special interest in because it will be the report that evaluates whether the case they are making is a good case,” Taylor said of the review work to be done in the coming months.

“And the case they are making is not just for them, but a global case. This is the report that is kind of the backbone of the aspirational goal of the Paris Agreement,” he added.

Nobel laureate Professor Anthony Chen, who was recognised for his own contributions to climate research through the IPCC, had high praise for Taylor.

“Professor Taylor is an excellent person to lead the project and I have every confidence in him,” said Chen, a mentor to the professor, whom he taught at university and who succeeded him as head of the Climate Studies Group Mona.

“I was very glad for him. He had asked me what I thought and I told him, ‘go for it’. It puts the Caribbean on the map that they should be for the 1.5 project. This is sort of a late registration of that fact,” he added.

Gleaner

JAMAICA HAS ratified the historic international climate change deal, dubbed the Paris Agreement, which was reached in France in 2015, following years of wrangling among countries over what its provisions should be.

This, as the world looks to combat the changing climate that threatens, through sea level rise, extreme weather events, increasing temperatures and associated impacts, to erode economies and jeopardise lives.

“The instrument was signed by the minister of foreign affairs (Kamina Johnson Smith) on the 30th of March and the document sent off to New York for deposit at the United Nations,” UnaMay Gordon, principal director of the Climate Change Division of the Ministry of Economic Growth and Job Creation, told The Gleaner Tuesday.

“It was deposited on the 10th of April. Therefore, for Jamaica, the agreement will enter into force on the 10th of May, 2017,” she added.

Jamaica’s ratification comes close to a year after its participation at the high-level signature ceremony in New York on Earth Day, April 22, 2016.

The agreement, meanwhile, aims to “strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty” through a number of actions.

Included among them is “holding the increase in the global average temperature to well below two degrees Celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees Celsius above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change”.

The island joins other CARICOM members with the exception of Haiti and Trinidad and Tobago who have ratified the agreement.

In responding to the perceived delay in Jamaica’s ratification, Gordon said the island had a process that needed to be gone through.

PROCEDURAL MATTERS

“Once the instrument was signed (in New York last year), then we started that process. Jamaica, unlike some other countries, had a process of consultation with the stakeholders to ensure that people understood what we were doing,” she said.

“The document went to the AG (attorney general) for the opinion of the AG. We received the opinion of the AG in October 2016. In the opinion, the AG had given an undertaking that there were only some procedural matters and that Jamaica could proceed to ratify the agreement,” she added.

“But we thought as a division that we should do the consultations. So we had focus groups, individual sit-downs and so on with stakeholders from finance, forestry, energy, etc, to find out if they were in agreement with the AG’s opinion to go ahead, and all of them had no objection,” Gordon said further.

No objections were received up to February this year and a Cabinet submission made.

“Cabinet gave the approval to ratify,” Gordon said. “We are now a full party to the agreement and have to implement at the national level.”

Gleaner

From left: Renford Smith, Marcus Grant and Alan Searchwell connecting the electrical components of a solar panel at the Wigton Renewable Energy Training Lab in Rose Hill, Manchester, recently.

As the debate intensifies over the possible rate increases which could face Jamaicans as more and more customers leave the Jamaica Public Service Company’s (JPS) grid, there are calls for a collaborative approach to the issue.

Manager of the Grid Performance Department at the JPS, Lincoy Small, says the various stakeholders must engage in dialogue to find an approach to provide the cheapest source of electricity to Jamaicans.

According to Small, it cannot be a matter of either renewable energy (RE) or staying on the JPS grid but a combination of the two.

“JPS is not telling people that renewable is not the way to go, because JPS even operates renewable facilities, but the key thing is to get them (grid and RE) working together in tandem to come up with the best synergy of what is best for the customer and what is best for the country,” said Small.

His comments came as Robert Wright, president of the Jamaica Solar Energy Association, told The Sunday Gleaner he has no desire for Jamaicans to leave the JPS grid.

Grid Stability

Wright said he strongly believes RE should be maximised and not just limited to large systems scattered across the island, but smaller systems distributed right across the country.

“When you have these smaller systems spread across the country it provides for better grid stability, and also it allows for more people to participate in clean energy as opposed to simply relying on large solar farms,” said Wright.

But Small said, based on experience due to the unpredictability of RE, the JPS sometimes has to resort to load shedding when customers jump on and off the grid.

He reiterated that JPS’s customers could face additional cost if the impact of RE on the grid is not handled carefully.

“So we are accepting solar power from the customers and as soon as something happens it drops off, and does so much quicker than the grid can even respond on some of those occasions, and as a result you have to be running expensive machines that are quicker to deal with those sun drop-offs or have to shed people’s light,” argued Small.

“And if you run these expensive machines or shed people’s light it means the overall cost to run the grid is going to be absorbed by the customer; you are going to have to pay for a more expensive energy source.”

The JPS executive said the company is actively seeking to incorporate new technology to deal with the loss of the intermittent renewable resources.

But Wright argued that the good news for Jamaicans is that the cost of RE is declining rapidly, enabling it to compete with traditional sources of energy.

“A system that a typical household would need in Jamaica two years ago would cost $1 million; that same system today cost $500,000, so we have seen a significant drop in prices,” said Wright.

“Also what is revolutionary is that the cost of batteries has gone down a lot, so now, even more than before, we will be able to offer that to residential customers at an affordable price.

“What is becoming more available now are systems called micro-inverters, and these allow you to install a very simple rooftop system which is cheaper, faster to install and is more appropriate for affordable housing developments, and so on.”

Batteries Expensive

But Small countered that with solar and wind on average only available for 20 and 35 per cent of the day, respectively, and the cost of buying and replacing batteries being expensive, it might be cheaper for customers to get their power from the JPS grid when RE is not available.

“It (solar) is a good thing to have, but it cannot be operated in isolation, and that is something a lot of people in the solar business not telling their customers,” said Small.

“Because even if you get a panel or a wind turbine and you get the battery, you are going to need a grid to at least charge up that battery for the 80 per cent of the time you are without solar or the 65 per cent of the time you are without wind.

“Plus, you will have to be replacing the battery every two to three years for full value, and batteries cost much more than solar panels.”

Small said the JPS is focused on supplying power as cheaply as possible so persons can take the cheap power from the grid rather than go buy a battery and use the solar power and the wind when it is available.

With Jamaica being a signatory to the Paris Climate Change Agreement, the utilisation of more RE forms part of the National Energy Policy which sees the country aiming to have 30 per cent RE penetration by 2030.

The country is currently at approximately 10 per cent of the quota, with roughly 300 net billing customers (those who have solar systems which allows them to consume energy and sell surplus) and around 10 larger customers.

Gleaner

KellyTomblinL20120417RB

For full article with audio clips click here

President of the Jamaica Public Service Company, JPS, Kelly Tomblin, is rejecting claims that she’s using scare tactics to keep businesses from turning to renewable sources of energy.

In an interview yesterday on Nationwide This Morning, Chief Executive Officer of Solar Buzz Jamaica, Jason Robinson, accused JPS of using ‘scare tactics’.

This was in response to comments attributed to Ms. Tomblin in a recent Gleaner report that the company could be forced to raise electricity rates if its top customers leave the grid.

But speaking with Nationwide News yesterday, Ms. Tomblin sought to clarify the comments she made to the Gleaner newspaper.

She’s insisting she’s not using a scare tactics.

Ms. Tomblin says she would prefer companies stay on the power grid.

This, as the intermittent use of the grid is more of a burden on JPS than if a company were to be removed completely.

And, Ms. Tomblin says the JPS doesn’t build LNG plants contrary to Mr Robinson’s claim.

He’d said the light and power company has been offering to set up small LNG plants for large companies, which would also take them off the grid.

She’s also refuting his claim that JPS’s rates are going up.

Nationwide

Solar Plant

For full article with interview  clips click here

CEO of Solar Buzz Jamaica, Jason Robinson, says the Jamaica Public Service Company, JPS, is using scare tactics to keep businesses from leaving the grid and turning to alternative energy.

In a recent interview with the Gleaner newspaper, JPS CEO Kelly Tomblin was quoted as saying that it could be forced to raise electricity rates if its top customers leave their grid.

Robinson says could mitigate any losses from clients who’ve switched to alternative energy by running a more efficient operation and doing more to combat theft.

He says JPS is already doing a lot to diversify its own fuel sources to keep energy costs down.

And, Robinson is also criticizing the power company for being hypocritical.

He claims JPS has been offering to set up small LNG plants for large companies, which would also take them off the grid.

Nationwide

A field of photovoltaic solar panels providing alternative to the supply from the JPS.

With many local entities turning to solar systems or other renewable systems to reduce their reliance on more expensive energy supplied by the Jamaica Public Service Company (JPS), there is a another indication that persons who remain on the JPS grid could face the consequences.

“We all should be concerned and thoughtful. You don’t want everybody who can afford solar on their roof going off the grid because you would still have to pay for the grid,” CEO of the JPS, Kelly Tomblin, told The Sunday Gleaner during a recent interview.

“How do we take care of a particular company so that we also take care of the whole? How do we find a way to make it affordable for everybody and don’t just let people cherry-pick off the grid?” added Tomblin.

There is no official registry of the amount of renewable energy being utilised on the island, but it is estimated that approximately 35 megawatts of renewable energy has been installed between residential and business customers in recent years.

The target is to have 20 per cent of the country’s energy need being supplied by renewable sources by 2018, moving to 30 per cent by 2030.

Energy Sales

The JPS has recorded four years of decline in energy sales from 2010 to 2014, but has seen a turnaround in the last two years with a two per cent increase in 2015 and a four per cent increase in 2016.

“This could be due to the fact that the cost of electricity to customers has dropped by about 25 per cent over that time (usage tends to increase when the price of electricity is lower),” the JPS said in an emailed response to questions from our news team.

According to the JPS, while it has not yet seen any revenue fallout from renewable energy installations, it recognises “that energy sales could have been higher if some customers had not gone off the grid”.

If more paying customers move to renewables and leave the JPS, the company will be selling to a smaller group of paying customers and could be forced to find alternative ways to remain profitable, which could see electricity cost increase for some customers.

If Top Customers Left

Tomblin admitted that if the company’s top 50 customers were all to leave the grid it would cause a serious problem, but she argued that she is confident that these companies are cognisant of their responsibility to the Jamaican people.

“I am really encouraged, having been in meetings with our top 50 customers, and we are having a lot of meetings with the Private Sector Organisation of Jamaica (PSOJ) and the Energy Committee to say how we can balance personal and country interest,” said Tomblin.

“People who are adding solar are doing so during the day; that is not when Jamaica has a peak. So unless they have storage we have to maintain the same power plant and the same grid, because they come on the JPS system at nights, so they still have to pay and, therefore, it is not that much of an impact to the system,” said Tomblin.

But PSOJ President Paul Scott said the decision to remain on the grid or not is one entities will have to decide based on what is best for their business.

“I am aware of some members who have not come off the grid because of the impact it might have on residential users, while other members have come off the grid,” said Scott, who is a member of the Electricity Sector Enterprise Team.

“So one must make their own economic decision based upon their own situation. Serious companies would take that (impact on residential users) into consideration. I would encourage our members to make decisions that will impact the overall competitiveness of Jamaica. Different industries have different utility requirements and therefore, you can’t generalise.”

According to Scott, the use of the grid will change over time, as PSOJ members, and the private sector as a whole, are always going to calculate the cost of energy as a significant part of their business.

Hands-on training is a key element of Wigton courses. Here (from left) Renford Smith, Marcus Grant and Alan Searchwell connect the electrical components of a solar panel at the Wigton Renewable Energy Training Lab in Rose Hill, Manchester, recently.

“BY BEING natural and sincere, one often can create revolutions without having sought them.”

The Wigton Wind Farm team could be drawing inspiration from these words by French fashion designer Christian Dior, as it rolls out a training programme designed to fuel interest and inspire further action on renewable energy in Jamaica.

“It is open to anybody who has an interest. It is open to the general public,” said Sanja Simmonds, engineer and training coordinator at the wind farm, which is located at Rose Hill in Manchester where they began the renewable energy training courses this year.

In January, the farm trained 20 people from across sectors — private and public, and including students as young as 19 years old — in photovoltaics.

“Once you have an interest, it just goes from there,” Simmonds noted. “(The training) is how we can stimulate that interest and have greater interest for the technologies.”

The first training course ran for three days, as will the next one looking at solar thermal energy to be held in April.

The third training course, which will focus on wind energy and hydro, will be held in July. The final one for the year will be held in November and focus on bio-energy.

Up to now, Simmonds said they had been careful to avoid over saturation, with each course having a cap of 15 participants, with provisions for no more than an additional five.

“We don’t want anyone lost. If you have too many people, you may have persons sitting around and not paying attention. What we want is for participants to be fully engaged and hands on,” he said.

“The delivery of the first course was extremely effective, based the feedback we got. The training courses are not for you to you only to come and sit down before a PowerPoint. It is 50 per cent theory and 50 per cent practical. So we had participants (from the first training course) actually doing, for example, photovoltaic installation, sizing wires, sizing panels, etc.,” Simmonds added.

The training coordinator explained further the thinking behind Wigton’s efforts.

“Previously Wigton’s tagline was ‘Making renewables a breeze’. Now our tagline is ‘securing Jamaica’s energy future’. To secure the energy future, you could do it in multiple ways. You could do it from a commercial point of view, which is what Wigton is. So we harness clean energy from the wind,” he explained.

“You could also do it from a technical standpoint, which is where we train. So we are trying to create interest in renewable energy and ensure that people have a better appreciation for it. So it is two fold — the commercial side and the technical side,” the engineer added.

The plan, he said, is to have the programme be annual.

“The courses will develop as time goes on. We didn’t want to start it five days and then people wanted three. So we started it on a minimal scale to see what the feedback would be like and the feedback was really exceptional,” Simmonds said.

“So now we will look at expanding the courses. Maybe in the future we will have five days of courses or even two weeks,” he said.

They also have their sights set on having the courses accredited.

“Currently it is just a certificate of participation (that participants receive), but as we go along, we are trying to figure out how we can get the courses certified,” Simmonds noted.

He was, however, quick to emphacise: “We are not trying to compete against the other institutions providing the training. What we are trying to do is stimulate the interested among the general public and then grow that interest.”

“When we talk about the energy policy, one of the core parts of it is to increase renewable energy penetration into the grid. If you are to do so, you have to make people aware of the type of the technologies that you are pushing,” he added.

Gleaner

Seated from (left) Audrey Sewell, permanent secretary in the Ministry of Economic Growth and Job Creation; Milverton Reynold, managing director of the Development Bank of Jamaica; Gillian Hyde, general manager of JN Small Business Loans, and Allison Rangolan McFarlane, chief technical director, Environmental Foundation of Jamaica sign a Memorandum of Understanding (MOU) to facilitate the administration of the Climate Change Adaptation Line of Credit (CCALoC). The CCALoC will provide financing to Micro, Small and Medium Size Enterprises in the tourism and agri-business sectors across Jamaica, to increase resilience to climate change in these sectors. The signing took place at the Office of the Prime Minister in St. Andrew last year. Looking on are Minister with Portfolio in the Office of the Prime Minister with responsibility for Economic Growth and Job Creation, Daryl Vaz and Therese Turner-Jones, general manager of the Inter-American Development Bank Caribbean Department.

Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.

“In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility,” said Jacqueline Shaw Nicholson, JNSBL’s communications and client services manager.

“We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them,” she told The Gleaner.

So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.

The first loan was approved in December, following the official launch of the line of credit earlier in the year.

“JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements,” said Shaw Nicholson.

For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.

“Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable,” revealed Shaw Nicholson.

The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.

However, Shaw Nicholson said, “borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed”.

The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).

The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.

It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for “clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction”, according to project documents.

The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.

Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.

Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.

It is a look at these implications that, at least in part, provides the basis of JNSBL’s decision to pursue administration of the line of credit under the PPCR.

“Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability,” Shaw Nicholson said.

“JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability,” she added.

Gleaner

In this November 2016 photo, co-chairman of Fortress Wes Edens (left) poses with Prime Minister of Jamaica Andrew Holness and President & CEO of the Jamaica Public Service Company (JPSCo) Kelly Tomblin at the offcial commissioning of the JPS LNG plant at Bogue in Montego Bay.

Power utility boss Kelly Tomblin views Softbank’s acquisition of Fortress Investment Group, to which New Fortress Energy is affiliated, as positive for furthering plans to build out gas facilities in Jamaica,

American company New Fortress Energy is a gas supply partner to Jamaica Public Service Company (JPS).

Last November, the partners celebrated the commissioning of Jamaica’s first LNG-fired plant at Bogue in Montego Bay, and they are about to start development on another gas facility in St Catherine. In both cases, New Fortress invests separately in the gas-supply infrastructure, while JPS develops the power plant.

The marine terminal and gas power plant development at Old Harbour in St Catherine is to get off the ground “in a couple of weeks,” said Tomlin, the president and CEO of JPS, on Friday.

JPS secured funding locally for its plant, while New Fortress planned to finance the project themselves with cash rather than debt, Tomlin, who noted that the acquisition by Softbank means “they will have a lot more cash”.

New Fortress did not return Gleaner calls up to press.

Last Wednesday, the two parties jointly announced a US$3.3 billion deal for Softbank of Japan to acquire New York-based Fortress Investment Group. Fortress, which is co-chaired by Pete Briger and Wes Edens, said its senior executives would remain with the company.

EXCITED ABOUT DEAL

“I am in dialogue with Wes Eden,” said Tomblin. “I am assured that this acquisition doesn’t harm the project and that also he is excited about this deal; and so too the members on the ground who work for New Fortress,” said Tomlin.

Asked about any other implication to Jamaica, she said there would be “absolutely none”.

New Fortress plans to build and operate a liquefied natural gas marine terminal and pipeline within the Portland Bight area or close to the Goat Islands, according to the environmental report released last year.

The project will be executed through affiliate NFE South Holdings Limited. The marine terminal will feed gas to the 190MW plant that JPS will be developing at Old Harbour.

Gleaner