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Powering the Virgin Islands

with Propane

WAPA Exec. Dir. Hugo V. Hodge, Jr. (right) & U.S. Virgin Islands by night, soon to be powered by Propane.
Vitol President Mike Loya (left), sign the propane
agreement at Government House.
In July 2013, The Virgin Islands Water and Power Authority As the Vice Chairman of CARILEC, the consortium of
(WAPA) signed an agreement with the Vitol Group, a Caribbean electric utilities, WAPA CEO Hugo V. Hodge,
leading global energy supplier, to engineer; procure and Jr. knows through his meetings with other regional utility
construct the necessary infrastructure, as well as supply directors how much they too are suffering with volatile
Liquefied Petroleum Gas (propane) as the primary source fuel oil rates. With the implementation of this project the
of fuel for power generation in the U.S. Virgin Islands. territory will become a model for the region. “The rest
Vitol scope also includes the conversion of seven (7) of of the Caribbean is looking at us and this project intently
WAPA’s gas turbines to burn gas and liquid fuel. Vitol is to see how our model can be used in their areas and
investing the upfront capital cost of approximately $100 throughout the region,” Hodge said. “This project will give
million for the project development and is known as one of them an indication of how their islands will survive when
the world’s largest physical energy traders, moving energy the cost of fuel oil continues to be high.”
sources from where they are produced to where they are With this project, WAPA can also advance a number of
needed. initiatives to modernize existing facilities, increase the use
The use of propane as WAPA’s primary source of fuel of efficient technologies, and make continued investments
will reduce the Authority’s fuel costs by approximately in the use of renewable energy sources. These include
30 percent and result in a significant reduction in rates projects to bring 18 MW of solar power to the territory,
for all WAPA customers. Further savings are anticipated and to create 7MW of renewable electricity utilizing a
after the 5-year capital cost amortization period, at which St. Croix-grown feedstock called “giant king grass.” The
time WAPA can opt to buy the infrastructure for $1.Using Authority will host community meetings that will keep the
propane will also decrease greenhouse gas emissions by public informed about the project. For more information on
about 20 percent. This move to a cleaner, less expensive WAPA’s switch to propane, visit poweringvi.vi or viwapa.vi.
fuel source has been endorsed by environmental and
community leaders throughout the territory. Be sure to follow PoweringVI on Facebook.

Renderings of St. Croix and St. Thomas onshore terminals respectively
INDUSTRY JOURNAL 7
Rendering of St. Thomas onshore terminal.