Trinidad and Tobago has struggled to achieve any appreciable level of renewable energy penetration. The country benefits from oil and gas reserves, and a history of subsidized electricity and fuel prices has exacerbated the level of domestic consumption.
With these challenges in mind, this report considers the economic realities and social impacts of reducing the country’s consumption of subsidized diesel in the transport sector via the implementation of locally produced biodiesel.
Guyana is used as an example when considering the feasibility of coconuts as a biodiesel feedstock, since they are the region’s leading producer of the crop and the labor and climactic conditions are very similar to those found in Trinidad and Tobago.
The Malaysian biofuel scenario is also used as a reference due to the established nature of the palm oil industry and the relative similarity between the climates and stated policy goals. In the Trinidad and Tobago context, the primary driver for reduced fossil fuel use is the government’s desire to reduce the annual fuel subsidy, the majority of which is applied to diesel sales.
The goal of this report is to utilize quantitative analysis to outline the economic and social benefits which can be realized if a sustainable biodiesel industry is implemented.
Author: Nathaniel, Christian