How New Fortress Energy LNG fuel for JUTC Buses is a step towards a Hydrogen-Electric Economy in 2030

“If the pilot is successful the intention is to add more buses, but at this time - before the start of the first phase - we are not in a position to say when the expansion will be and by how many buses”

JUTC spokesman Cecil Thoms on the New Fortress Energy planned upgrade

New Fortress Energy is helping the JUTC (Jamaica Urban Transit Company) to go LNG (Liquid Natural Gas).

This as they have developed a LNG gas station that has the capacity to fuel 25 buses daily as reported in the article “JUTC Hopes To Burn $3b Fuel Bill With LNG”, published Friday July 20, 2018 by Avia Collinder, The Jamaica Gleaner.

It is scheduled for early 2019 and will not have a real impact on the JUTC until 2025, making this a Government for the long haul. The LNG pilot programme being financed by New Fortress is an upgrade of the original pilot program as laid out in my blog article entitled “Why the JUTC is adopting LNG and CNG as PCJ need to emphasize Solar, Wind and Biofuel”. 

This upgrade will allow the bus refueling depot in two locations:

1.      Kingston Depot

2.      Spanish Town, St Catherine Depot

It's expected to cost some JA$400 million and will include some five (5) LNG ready buses, with planned retrofits of older buses to use LNG. This translates to some 720 gallons of fuel daily, enableing the refuelling station to fuel some 25 buses daily, or five times the number of buses designated for the pilot programme.

So how will impact the JUTC's fuel bill?

JUTC's fuel bill - LNG a push towards lower fares

JUTC has some interesting stats gleaned from the Jamaica Public Bodies report worth noting:

1.      608 buses in its fleet

2.      525 of which are operational

3.      JA$2 billion in the past two years

4.      JA$3.7 billion fuel bill in 2018

The JUTC is projected to earn $5.32 billion at year ending March 2019. Of that 69% of bus fares goes towards their fuel bill, outstripping the expected $3.33 billion of staff expenses. With their fuel bill expected to rise from $2.52 billion to $3.68 billion, a 46% rise.

Thus, a cheaper fuel alternative is needed.

This may mean lower fares, possibly as low as JA$10 on any route, once they eventually switch to Hybrid Electric Buses as predicted in my blog article entitled “Why JUTC going Hybrid indicates removal of 60% import duty on Electric Vehicles”, the use of LPG (Liquid Perroleum Gas) would be widespread.

So why is New Fortress Energy doing this?

New Fortress Energy and LNG - Step towards a Hydrogen-Electric Economy in 2030

This is more good work from New Fortress Energy, who are already collaborating with IGL Limited to introduce a new range of trucks that use LNG as noted in my blog article entitled “How IGL Limited and New Fortress Energy LNG partnership will jumpstart LNG Vehicle Conversion”. 

New Fortress Energy is anticipating a future where all Ships travelling to the USA will be going LNG. So they being quite diplomatic in sharing the benefits of the cheaper, more environmentally friendly fuel with the Jamaican Government.

The Government of Jamaica have allowed them to set up a refuelling Depot for Ships in Jamaica. With an overall price of JS$400 as noted in the article “LNG to power JUTC buses”, published Sunday, July 15, 2018, The Jamaica Observer,  US$1.7 million (JA$230,860,000) will be spent on the Spanish Town, St Catherine.

Hopefully by the time the JUTC eventually upgrades the buses to Hybrid i.e. running on Electric power stores in Li-Ion Batteries and using the LNG to generate reserve power as predicted in my blog article entitled “Why JUTC going Hybrid indicates removal of 60% import duty on Electric Vehicles”, the use of LPG (Liquid Petroleum Gas) would be widespread.

This as the JUTC would not only result in more Electric Vehicles being imported due to possible waivers being extended to regular Car Dealers on the 60% import duty imposed on them as posited in my blog article entitled “JPS, USAID and How removing 60% import duty on Electric Vehicle will reduce Jamaica's Oil Bill”, but it may spark many local mechanic to begin the modification of their vehicles to use what may be a cheaper and cleaner source of fuel for their engines.

Jamaica will hopefully use this as a stepping stone towards a Hydrogen-Electric Economy in 2030 as predicted in my Geezam blog article entitled “Jamaica House 15-kW Solar heralds Hydrogen-Electron Economy in 2030”.