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Jamaica is a third country that has significant prospects for increasing its biofuels production. Its recent energy policy strategy has promoted consumption of ethanol – to replace MTBE in gasoline – and biodiesel. It also encourages the development of the domestic and export-oriented ethanol markets. Brazil and Jamaica have signed a letter of intent to provide mutual support for the development of Jamaica’s sugar and ethanol sectors. Currently, Jamaica’s ethanol production capacity – mainly refining – is about 200 million liters per year and is expected to increase to around 370 million liters per year in the medium term. To put this in the context of its energy matrix, Jamaica produces 3,400 barrels of oil equivalent per day of ethanol, which represents some 4.6 percent of its imports of hydrocarbons. Potential impediments to the sector’s competitiveness include the restructuring of the sector, the ability of the government to attract investment to the sector, and road infrastructure. Finally, Trinidad and Tobago has potential for biofuels production, despite its current focus on oil and gas. Although it has not yet taken steps toward regional cooperation with Brazil or enacted domestic legislation to promote the sector’s development, the government recognizes the growing global interest in biofuels and shares the incentives of its neighbors enshrined in the Caribbean Basin Initiative. Currently, Trinidad Bulk Traders Limited is the only ethanol producer in the country, with a capacity of 190 million liters per year (3,300 barrels of oil equivalent per day) and the potential to double its capacity with minimal investment. In addition, Trinidad and Tobago exported about 38 million liters to the United States in 2005. Therefore, with the appropriate legal and regulatory measures taken, Trinidad and Tobago could also build its biofuels sector, which would complement the oil and gas industries in the country and enhance its competitiveness as a global energy supplier. Individual Country Efforts In addition to the regional efforts, individual countries have also shown their commitment to increasing regional integration and reducing dependence on oil. The cases of Jamaica, Guyana, and Barbados exemplify these efforts. Jamaica In late 2005, the Government of Jamaica updated its 1996 energy policy and developed an energy strategy for 2006-2020.25 The strategy aims to reduce the impact of high oil prices by 13PDF Image | Prospects for the Oil-Importing Countries of the Caribbean
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