Fuels

3.3.4.1 Explore with fuel suppliers the technical and commercial viability of introducing limited blends of ethanol in gasoline (up to E10) and biodiesel up (up to B5). In Progress

OfReg facilitated ethanol introduction into the market by granting permission for the Re-fuel station which offers blends in gasoline and biodiesel. It is debatable if it is technically and commercially viable and therefore it will be for other fuel services to determine if they wish to pursue this. The technical and commercial viability has not been assessed. This is not considered to be a priority therefore suggest timeline be amended and reassessed at 5-year review.

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3.3.4.2 Keep under review the development of containerized compressed natural gas (CNG) technology. Pending

This strategy is considered to be a duplication of 3.3.5.1 and should be deleted.

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3.3.4.3 Consider the viability of liquefied petroleum gas (LPG) for transportation. In Progress

OfReg is considering a pilot project to provide a commercial LPG fueling station. This strategy should be assed in the 5 year review to determine if LPG vehicles should still be considered as the current focus is on electric vehicles. Consideration should also be given to the availability of vehicles with LPG tanks.

3.3.5.1 To manage the cost of the transition to 70% renewable energy for generation the Government will evaluate the best economic options for achieving this objective over the Policy horizon and, where it is determined to be prudent and achieves the objective of balancing consumers’ interests, consider the use of transitional fuels such as liquefied natural gas (LNG) or compressed natural gas (CNG) for power generation. In Progress

CUC is currently exploring the option to convert some of their diesel generators to use compressed or liquefied natural gas (“CNG” or “LNG”). LNG is discussed in the National Energy Policy (“NEP”) and CUC’s 2017 Integrated Resource Plan (“IRP”). The IRP recommended engaging into discussions with suppliers to bring natural gas to Grand Cayman under a combination of short-term and long-term contracts. A strategy is being developed that considers all viable gas to power options and narrow those that have the lowest costs, a manageable level of risk (i.e. financial, environmental, social, and technical), and could be implemented in a reasonable timeframe. This would assist in forming the best route forward to procure a solution and achieve the goals and objectives of the IRP and NEP. CUC engaged the services of the highly qualified K&M Advisors to perform this high level strategy study. The objective of the study was to assist CUC in finalising a Gas to Power strategy. The strategy includes viable options for importing, storing, and regasifying LNG as well as CNG, and sending gas to CUC's power generation units; the contracting arrangements to buy gas; and the procurement methods for selecting a gas supplier.

3.3.6.1 Develop policies and implement the legal and regulatory framework to secure:

a) A fair and competitive market for the importation of fuels into the Cayman Islands.

b) A fair and competitive market in the marketing and retailing of fuel products.

c) A doption of equipment technology advances and support for fuel types and specifications appropriate for the Islands.

d) The ongoing review and implementation of policies which overall, foster affordable fuel prices.

e) Government will consider the impact that the existing fuel importing bulk storage facilities and distribution infrastructure and any future bulk fuel installations and facilities development opportunities would have on fuel related strategies.

f) Maintain industry test standards for all fuels used in the Cayman Islands.

g) Ensure that fuel suppliers comply with established international regulatory standards for quality control. Pending

OfReg has completed a report and the recommendations are being provided to Cabinet.