WILLEMSTAD – Environmental organization Clean Air Everywhere (CAE) is questioning whether asphalt production at the former Curaçao refinery site can be economically viable under current market conditions, arguing that any private investor pursuing such a project should first present a transparent and convincing business case.
CAE made the comments in response to plans presented by 2BAYS for the future development of the Schottegat area, the former Isla refinery site and Bullenbaai.
The organization welcomes the indication that a traditional oil refinery is no longer expected to return to Curaçao. CAE stressed that it is not opposed to industrial development but believes new economic activities should not come at the expense of public health and the environment.
Asphalt production, however, is one activity about which the organization remains skeptical.
CAE argues that Curaçao may previously have had a stronger logistical position when heavy Venezuelan crude could not easily be sold through conventional international trading routes. Under those circumstances, processing Venezuelan crude in Curaçao could potentially have offered advantages.
According to the organization, changing conditions surrounding Venezuelan oil have weakened that argument. If Venezuelan crude can be transported directly to the United States, where a significant asphalt industry already exists, routing the oil through Curaçao would introduce additional logistical steps and costs.
Oil would first have to be shipped to Curaçao, unloaded and stored, potentially kept heated and processed, before the resulting product could be shipped again to its final market.
CAE therefore believes that any company proposing asphalt production at Emmastad should demonstrate how those additional costs can be absorbed while keeping the operation competitive.
The organization is not calling for asphalt production to be ruled out altogether. Instead, it argues that such an operation should proceed only if a private investor can demonstrate a sustainable market, reliable supply arrangements and an economically viable business model.
CAE's position comes as Curaçao continues to reconsider the future of the vast industrial properties formerly associated with the Isla refinery. With the traditional refinery model increasingly disappearing from government plans, debate is shifting toward which new industries can make productive use of the infrastructure while creating sustainable employment and revenue.