125 CNG buses for Jamaica by yearend

THE GOVERNMENT is to consider converting the Jamaica Urban Transit Company’s (JUTC) Portmore depot into a hub for compressed natural gas (CNG) refueling which will be fully powered by New Fortress Energy (NFE).

This is in an effort to accommodate the refueling of 150 JUTC buses which will use compressed natural gas.

The arrangement follows an early initiative where the JUTC opted for CNG instead of liquid natural gas (LNG) as a safer option, following tests for replacement fuel for diesel. In 2020, NFE and JUTC began a pilot project to test five CNG-powered buses.

The government committed to 25 CNG buses; five are here tested and 20 that were ordered a few months ago. Another 125 CNG buses are being eyed for Jamaica between now and the end of the year.

Daryl Vaz, minister of science, energy, telecommunications and transport, at the Post Cabinet Press Briefing held at Jamaica House on Wednesday, explained the need for a focus on the CNG refueling ports.

“We are moving away, as a government policy, from fossil in diesel and have moved to CNG, which is compressed natural gas, from LNG. And we have had a pilot project of five of those through a framework agreement with New Fortress Energy and there has been another order for 20 that is now in place, expected to get here by the end of the year. But more importantly, the framework agreement that was approved and signed off from the original test, has up to 150 buses,” Vaz said.

“That number is a magic number because the depot that New Fortress Energy put in place at their cost – because they would sell the LNG – can hold up to 150 buses (and) fuel up to 150 buses per day. So we are now looking at that,” he said.

He said the framework agreement for that was very simple, as the differential in price between diesel and the LNG at that time “was quite a spread”.

“It has reduced because of ... the issues with the Ukraine war, but still, there are sufficient differential between the two that can go towards paying for the buses. So we are now looking at the possibility of increasing and maximising that to 150 compressed natural gas buses with a view of converting Portmore into a CNG hub as the depot is there, while we test electric buses,” he said.

Three additional charging stations will also be installed to charge the next five electronic buses which are on their way.

Vaz said a part of the agreement with the suppliers of the electronic buses is to have training of JUTC staff.

He said the plan, as noted also by Minister of Finance and the Public Service Nigel Clarke in his budget presentation, is for 100 electric buses for 2024/25 financial year and another 100 for 2025/26 financial year.

He also noted the need for a diversified and balanced approach to the types of buses in the Government-run company’s fleet.

“The results of the testing will decide whether or not we go full into electronic buses head on, or we stagger it with CNG and electric. Because obviously the technology is emerging and we have heard stories of those countries that have gone headfirst into electric and are facing major challenges with up to 30 per cent of their fleet down in a matter of months,” Vaz said.

“So, whereas we are moving in that direction, we are cautious. And the bottom line is that it may be that we may have to make a representation depending on the test as to whether or not we go full for the 100 or we split it at least for the first year,” he said.

Jamaica will be in a position to order 100 buses by early 2024 or the new financial year.

For this, Vaz said, “That would put us at 225 new buses within the next six to 18 months.”

ainsworth.morris@gleanerjm.com