THE Agriculture Ministry is engaging stakeholders in a training workshop with regard to bio-energy opportunities in Guyana. Given the importance of developing countries access to energy sources which would reduce their reliance on fossil fuel, Guyana is increasing efforts to move towards the development of bio-fuel.
Agriculture Minister Dr. Leslie Ramsammy, in addressing the training session, held at The Guyana School of Agriculture (GSA) at Mon Repos, East Coast Demerara, emphasised the need for accessing affordable energy.
“Too many developing countries are dependent of fossil fuel at a phenomenal cost to the economy,” Minister Ramsammy said.
He added that fossil fuel is not an inexhaustible resource, hence there is a constant and persistent search for oil, which had led companies to Guyana some decades ago.
According to Dr. Ramsammy, the need for energy to maintain and expand one’s lifestyle is expanding at a time when access to affordable fuel is limited and becoming unaffordable.
The current price for oil is now US$100 per barrel, as compared to US$40 per barrel 10 years ago; and the United States has predicted that, in another several weeks time, the price for oil will exceed US$105 per barrel.
Enhanced energy profile
Dr. Ramsammy pointed out that Guyana‘s energy profile has improved significantly. He added that there is “the opportunity for Guyana to become (a) supplier of fossil fuel, as exploration is ongoing presently by two companies, REPSOL and CGX Guyana Inc.”
Despite the difficulties, Minister Ramsammy expressed confidence that the Amaila Falls hydropower plant will come on stream by 2014/2015. He also spoke of the potential benefits from a hydropower plant at Moco Moco in Region 8.
Moreover, he spoke of the national grid benefiting from between four and eight megawatts of energy from bagasse at the Skeldon sugar factory, which has the potential to produce up to 30 megawatts of energy. He expressed hope that, by 2015, Skeldon will be contributing 30 megawatts of energy.
In addition, for a number of years during the grinding season, the Albion Sugar Estate has been providing its own electricity. These, Minister Ramsammy said, are examples that Guyana is improving its profile in the use of bio-energy to supplement access to bio-fuel.
Guyana’s development trajectory embraces the goal of bio-energy as a significant part of its development programme. In this regard, the agro-energy policy recognises Guyana’s strong tradition and outlook for the future, in terms of agriculture remaining a pillar of development. This will ensure that Guyana’s agriculture sector does not engage in producing only food.
Guyana is currently expending approximately 40 percent of its gross domestic product (GDP) importing fuels such as gasoline, diesel and heavy oils. Given the fact that the country’s growth and economic development depend heavily on petroleum-based products, the prices for which have been drastically increased, Guyana is steadfastly looking at developing bio-fuels.
Deputy Director of the Institute of Applied Science and Technology (IAST), Deonarine Jagdeo, noted that the local economy is not affected by fuel prices, notwithstanding the outlook of the Corentyne Basin and other areas which have shown evidence of having petroleum reserves.
He said, “Even as Guyana develops its hydro-electric capacity, it continues to depend on liquid fuel for activities such as mining, transportation, agriculture, and the fisheries sector.” Jagdeo added that the Government of Guyana, the IAST and the Agriculture Ministry have been identified to play leading roles in the development of the sector. He pointed out that the IAST is playing a pivotal role in developing standards and testing capabilities for controlling the quality of bio-fuel, and promoting investments and technical support for development of bio-fuel, thus spearheading the development of a Guyana Agro Energy Board.
Strategic component
Meanwhile, Head of the Guyana Energy Agency (GEA), Mahendra Sharma, in his remarks, emphasised the importance of bio-energy as a strategic component of Guyana’s energy sector.
He pointed out that whilst hydropower produces large opportunities in the range of 7,000 megawatts, bio-energy can provide an alternative of the same amount. He added that bio-energy is not only based on ethanol and bio-diesel, but incorporates agricultural products.
The GEA head said that, in the context of Guyana’s energy sector, while plans are in place for hydropower, bio-energy is also being used. He cited the sugar industry as an example, for its use of bagasse to produce electricity.
According to Sharma, about five percent of electricity being consumed in the sugar industry is sourced from bio-energy (bagasse).
He declared that Guyana can derive tremendous benefits from hydro and bio-energy, adding that bagasse represents about 200-300 gigawatts of power per year, which is 40 percent of the electricity used from the sector. Approximately 26% of the fossil fuels imported into Guyana is consumed in the transportation sector, and the production of bio-fuel represents a replacement of about 28 percent of the local consumption.
Meanwhile, Operations Analyst of the Inter-American Development Bank (IDB), Clevern Liddell, told the gathering that the financing given to Guyana was a result of a high-level seminar held in 2007 to establish bio-energy in the Caribbean, whereby Guyana expressed interest in expanding its potential in that area. According to Liddell, the IDB is pleased to provide full financial support for the development of bio-energy in Guyana.
The training workshop continues until March 9.