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Bahamas Government Seeks Consultation On protocols In Using Any Sort Of Bio-diesels With Petroleum Products In The Retail And Industrial Markets
Related to country: Bahamas

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Ethanol blend a viable petroleum option:
By JIMENITA SWAIN, Guardian Senior Reporter -
Nassau, Bahamas:



Consumers may have to keep a keen watch to see if the government moves to include an ethanol blend in petroleum products at the pumps in the near future.

Ethanol or ethyl alcohol is considered to be a clean burning fuel produced from corn or sugar crops. According to most search engines online such as About.com, engines built from 1970 could use 10 percent ethanol blended fuels. A carburetted engine could use the fuel as well, but may need to make some adjustments for full advantage to be had.

Minister of State in the Ministry of Environment, Phenton Neymour, told The Nassau Guardian in a telephone interview that, "This issue is more than just adding ethanol into the gasoline. We are aware of this practice and have already begun discussions with the IDB (Inter-American Development Bank) to seek consultation on protocols in regards to using any sort of bio-diesels, along with petroleum products in the retail market and on the industrial side of the business."

He said before the whole issue or discussion arose about using fuels which were mixed with ethanol came up, discussions had already been put in place, "because it is one of the matters that have slowed up the process in approving bio-diesel with petroleum products locally." According to Neymour, a number of issues have to be addressed, one of which was pricing.

In addition, those discussions which are in the initial phases, center around pricing the standards and quality of the product. For example, Minister Neymour said the discussions which began in February with the IDB also covered mixture rates with the blended fuels.

"Today our price at the pump is based upon the invoice price where it's imported ... we are looking at producing bio-diesel locally," he said. Minister Neymour admitted that the ethanol mixture with gasoline impacted vehicles in some way. "Ethanol has the same effect on a number of vehicles, for instance, they would affect the silicone and rubber that's in the vehicles themselves and so that's why there is the concern of having those products in the retail market, where someone pulls up to the pump and buys gas without an educational process taking place first." In that process of education, consumers would be told what was being pumped into their vehicles and whether their vehicles could accommodate such a mixture."

Neymour stressed though that "the government at this particular time is not looking at forcing any products upon consumers." Rather, Neymour said, "The government at this time is looking at standards to be implemented for petroleum products."

In late June, motorists in Grand Bahama had complained about what they called "bad gas" affecting their vehicles' operation. Investigations into those claims by The Freeport News revealed that Freeport Oil Company Limited (FOCOL), the island's oil supplier, had received from their suppliers in Florida a new blend of gasoline. Suppliers in that state have been mandated by the U.S. government to sell environmentally-friendly ethanol-blended gasoline - the break down being 10 percent ethanol and 90 percent gasoline. FOCOL, in a June 30 press release, indicated that they introduced the gasoline with the ethanol blend to the Grand Bahama market in May 2008. In an injected engine, ethanol has the ability to loosen contaminants and residue deposited by previous gasoline fill-ups. The problem can be corrected by changing the fuel filter.

Speaking briefly about that matter involving FOCOL, Minister Neymour said, "that was a choice made by FOCOL." Although the blended gasoline impacted on vehicles' fuel pumps, etc., Minister Neymour said, "The motorists should not be concerned in my opinion, because the government is taking steps to try and prevent a future incident."

In regards to the ethanol issue, Minister Neymour said he knew for a fact, it was an issue in energy policy of Barbados. "We have reviewed that policy and are considering those initiatives, but before those initiatives come into place there must be a public awareness program in regards to the requirements to use this particular product," he said.

"What is important is that we as a country ensure and put in place programs to address product quality and products that are imported into our country, particularly in the petroleum industry, and ensure that those standards are upheld," he added.

Further, he said, "There also has to be a program for the integration of this product into our petroleum retail business." He admitted that the matter of ethanol mixture in gasoline was not one that has been raised with the petroleum dealers. "Because in order for us to have discussions with them we must first review that policy and review whether it brings benefit to us," Neymour stated.

August 9, 2008 | 1:12 PM Comments  0 comments

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