Cayman’s sole electricity producer is working towards incorporating the burning of natural gas into its energy generation by 2027.
Caribbean Utilities Company announced its plans in a press release on Wednesday, 6 Sept., saying the gas is a cleaner burning fuel than diesel and produces 30% less CO2 emissions.
The company explained that, in 2022, it began working on a project to upgrade 68 megawatts of diesel generation to enable the use of natural gas as a cleaner fuel.
This is expected to conclude in 2025, a CUC spokesperson told the Compass, adding: “The upgrades will bring the engines up to the latest specification, and also improve their fuel efficiency when operating on diesel fuel.”
Once that is completed, the company will then build the infrastructure needed to be able to receive the new fuel source.
It is currently looking for natural gas suppliers and has asked prospective candidates to provide qualification submissions before 15 Sept. as the first step in the procurement process.
“We expect that supply could be available as soon as 2027,” the spokesperson said.
They added that natural gas will lower emissions, provide better air quality, and will lower and stabilise the cost of fuel so that electricity costs are lowered for customers.
Transitional energy source
According to its website, CUC’s power system is made up of 20 generating units with a combined capacity of 165.55 megawatts.
The company recently released six megawatts for its rooftop solar programmes bringing the total capacity offered to 24 megawatts.
“Our battery programme is well on its way and is targeted to be completed in early 2024 which will allow for increased solar energy on the grid,” the spokesperson said.
They added that the company “will work in every way possible” to reach the National Energy Policy goal of a transition to 100% renewable energy by 2050.
“The company and the National Energy Policy contemplates that in this transition period, it would be advantageous to utilise the cleanest and most cost-effective fuel and it has been determined that natural gas is that fuel.
“With the conversion of the engines for efficiency and to run on natural gas, we are taking active, incremental steps to a greener Grand Cayman and lowering costs for our customers as soon as possible.”
Private meeting
In March 2021, the company gave a private presentation to the Central Planning Authority explaining its plans to introduce natural gas as a transitional energy source in Cayman.
Members of the media or public were not allowed to attend because, as Ron Sanderson, then deputy director of planning, said, CUC was making a presentation, not a planning application.
Environmental groups Amplify Cayman and the Mangrove Rangers were among those who had shown up to attend the meeting, and expressed concern it was restricted.
However, Sacha Tibbetts, CUC’s vice president of customer service and technology, later told the Compass the company would have “been happy for members of the public to attend”.
He described the presentation as “a consultation discussion” to seek feedback from stakeholders on issues or perceived issues on the importation of natural gas into Cayman.
CUC had previously had similar discussions with OfReg, the Department of Environment, the Energy Policy Council and various on-island fuel suppliers, Tibbetts said at the time.
In its 30-year Integrated Resource Plan released in 2019, CUC recommended several energy alternatives – including natural gas.
Other options were investing in battery energy storage, assessing the viability of ocean thermal energy conversion, supporting the development of landfill gas facilities, and building more solar energy generators.
Pace Global, the consultants which drew up the report, projected that Cayman would gradually use more natural gas starting around 2024 and existing generators would be retired.
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