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Agency

Petrojam Ethanol Company Limited (PEL)

Petrojam Ethanol Limited (PEL) is a wholly owned subsidiary of The Petroleum Corporation Limited, a statutory body of the Government of Jamaica. The business office is located at the Petrojam Limited Refinery compound at 96 Marcus Garvey Drive in the capital city of Kingston.

PEL’s primary activity is the procurement of ethanol feedstock (hydrous alcohol), the dehydration process to fuel ethanol (anhydrous alcohol) and the marketing of fuel ethanol in the United States, Jamaica and other markets. The primary source of supply for the hydrous ethanol is currently Brazil and is supplied through either direct purchase or toll processing arrangements.

PEL, being a processor of ethanol in Jamaica, qualifies under the Caribbean Basin Economic Recovery Act (CBERA) of 1983 for the exemption of duty in the exportation of fuel grade ethanol into the USA. Jamaica was among the first countries in the region to produce fuel grade ethanol for export to the United States. Jamaican ethanol producers enjoy a duty free status under the Caribbean Basin Initiative while Brazilian producers do not. Up to December 2011, Brazilian exporters were subjected to a US$0.54c tariff, therefore deterring them from exporting directly to the USA. The tariff is now expired and CBI ethanol producers are lobbying for its re-instatement. In the meantime, export is only possible when market conditions and credits from the USA biofuels programme are favourable.