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Financing options for phase two of local geothermal considered

Montserrat was represented this week at the Regional Geothermal Forum carded held in St. Kitts and Nevis from May 10-12. With this topic being very hot in the region particularly about fund, not long ago before the meeting, local HMG Development for International Development (DFID) Rep Martin Dawson, said Montserrat is currently looking at several options for funding the next phase of its geothermal project.

Speaking on the financing options being considered for the next phase of the local geothermal project, Martin Dawson said, “Obviously one of them will be grant financing by the U.K Government. One could be a build operate transfer public pro partnership model and I am sure there are many others but we will look at that very closely and look at the cost and benefits of those and then come up with what we think is the most sensible option for Montserrat and we will be prepared then to put forward to U.K. Ministers in particular.”

TMR recalls that in December 2014, DFID publicised a “Prior Information Notice: Geothermal Energy Project which said: “The UK’s Department for International Development (DFID) intends to fund the construction of a geothermal energy project on the island of Montserrat in the Caribbean.”

Continuing to justify their intention the published Notice said: “Montserrat is a UK Overseas Territory and have a constitutional relationship with the UK, and their citizens have a right to British citizenship. The UK government is committed under the United Nations charter “to promote to the utmost the well-being of the inhabitants of these territories”.

DFID’s priorities for Montserrat is to meet the “reasonable assistance needs” of its citizens as cost effectively as possible, while help the island to become more self-sufficient where possible. Montserrat’s economy is 100% fossil fuel based. “

The notice continues: “This is unsustainable position from an environmental, climate change and economic perspective. Electricity prices in Montserrat are some of the highest in the world and are significantly influenced by fluctuations in oil prices on the world market. To date exploratory drilling of the two wells was completed in late 2013, with the testing programme completed in July 2014. These wells are able to produce a level of output, but currently not of the capacity to provide fully the required energy output to remove the requirement for fossil fuel based energy production.

Minister Lewis went to the St. Kittt’s meeting with the knowledge that “A third well drilling programme after proposal is about to begin. The well is to be used reportedly, as a reinjection/production well to allow the two existing wells to have a combined potential generation capacity of 3MW of power – moving to a projected 5MW.

The three day forum was held under the theme: ‘Opportunities and Synergies for Collaboration’ from May 10-12.

(See related previous issue: OECS to focus on geothermal energy at St. Kitts and Nevis forum).

 

The Department for International Development has allocated $17.6 million for this phase, which is intended to increase the potential yield of this green energy from 2MW to 5MW. It is hoped that drilling will commence in early 2016.

“This 3rd well will be drilled to a depth of between 2,000 and 2,500 Meters. The target area is sited on (the base!) of St. George’s Hill, just inside Zone V. It is proposed that this area has both hot fluid and locally high permeability.

“Two previous wells that were successfully drilled in 2013/2014 under Phase 1 and 2 which cover the exploratory drilling for the 3rd well, will help to ascertain a suitable configuration for a geothermal plant.”

Posted on 05 December 2014.

The UK’s Department for International Development (DFID) intends to fund the construction of a geothermal energy project on the island of Montserrat in the Caribbean. Montserrat is a UK Overseas Territory and have a constitutional relationship with the UK, and their citizens have a right to British citizenship. The UK government is committed under the United Nations charter “to promote to the utmost the well-being of the inhabitants of these territories”. DFID’s priorities for Montserrat is to meet the “reasonable assistance needs” of its citizens as cost effectively as possible, while help the island to become more self-sufficient where possible. Montserrat’s economy is 100% fossil fuel based. This is unsustainable position from an environmental, climate change and economic perspective. Electricity prices in Montserrat are some of the highest in the world and are significantly influenced by fluctuations in oil prices on the world market. To date exploratory drilling of the two wells was completed in late 2013, with the testing programme completed in July 2014. These wells are able to produce a level of output, but currently not of the capacity to provide fully the required energy output to remove the requirement for fossil fuel based energy production. A third well drilling programme is now proposed to be used as a reinjection / production well to allow the two existing wells to have a combined potential generation capacity of 3MW of power.

Estimated cost of works excluding VAT: Range: between £2,500,000.00 and £4,000,000.00 GBP (EC$10,600,000 and EC$16,959,000)

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A Moment with the Registrar of Lands

Montserrat was represented this week at the Regional Geothermal Forum carded held in St. Kitts and Nevis from May 10-12. With this topic being very hot in the region particularly about fund, not long ago before the meeting, local HMG Development for International Development (DFID) Rep Martin Dawson, said Montserrat is currently looking at several options for funding the next phase of its geothermal project.

Speaking on the financing options being considered for the next phase of the local geothermal project, Martin Dawson said, “Obviously one of them will be grant financing by the U.K Government. One could be a build operate transfer public pro partnership model and I am sure there are many others but we will look at that very closely and look at the cost and benefits of those and then come up with what we think is the most sensible option for Montserrat and we will be prepared then to put forward to U.K. Ministers in particular.”

TMR recalls that in December 2014, DFID publicised a “Prior Information Notice: Geothermal Energy Project which said: “The UK’s Department for International Development (DFID) intends to fund the construction of a geothermal energy project on the island of Montserrat in the Caribbean.”

Continuing to justify their intention the published Notice said: “Montserrat is a UK Overseas Territory and have a constitutional relationship with the UK, and their citizens have a right to British citizenship. The UK government is committed under the United Nations charter “to promote to the utmost the well-being of the inhabitants of these territories”.

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DFID’s priorities for Montserrat is to meet the “reasonable assistance needs” of its citizens as cost effectively as possible, while help the island to become more self-sufficient where possible. Montserrat’s economy is 100% fossil fuel based. “

The notice continues: “This is unsustainable position from an environmental, climate change and economic perspective. Electricity prices in Montserrat are some of the highest in the world and are significantly influenced by fluctuations in oil prices on the world market. To date exploratory drilling of the two wells was completed in late 2013, with the testing programme completed in July 2014. These wells are able to produce a level of output, but currently not of the capacity to provide fully the required energy output to remove the requirement for fossil fuel based energy production.

Minister Lewis went to the St. Kittt’s meeting with the knowledge that “A third well drilling programme after proposal is about to begin. The well is to be used reportedly, as a reinjection/production well to allow the two existing wells to have a combined potential generation capacity of 3MW of power – moving to a projected 5MW.

The three day forum was held under the theme: ‘Opportunities and Synergies for Collaboration’ from May 10-12.

(See related previous issue: OECS to focus on geothermal energy at St. Kitts and Nevis forum).

 

The Department for International Development has allocated $17.6 million for this phase, which is intended to increase the potential yield of this green energy from 2MW to 5MW. It is hoped that drilling will commence in early 2016.

“This 3rd well will be drilled to a depth of between 2,000 and 2,500 Meters. The target area is sited on (the base!) of St. George’s Hill, just inside Zone V. It is proposed that this area has both hot fluid and locally high permeability.

“Two previous wells that were successfully drilled in 2013/2014 under Phase 1 and 2 which cover the exploratory drilling for the 3rd well, will help to ascertain a suitable configuration for a geothermal plant.”

Posted on 05 December 2014.

The UK’s Department for International Development (DFID) intends to fund the construction of a geothermal energy project on the island of Montserrat in the Caribbean. Montserrat is a UK Overseas Territory and have a constitutional relationship with the UK, and their citizens have a right to British citizenship. The UK government is committed under the United Nations charter “to promote to the utmost the well-being of the inhabitants of these territories”. DFID’s priorities for Montserrat is to meet the “reasonable assistance needs” of its citizens as cost effectively as possible, while help the island to become more self-sufficient where possible. Montserrat’s economy is 100% fossil fuel based. This is unsustainable position from an environmental, climate change and economic perspective. Electricity prices in Montserrat are some of the highest in the world and are significantly influenced by fluctuations in oil prices on the world market. To date exploratory drilling of the two wells was completed in late 2013, with the testing programme completed in July 2014. These wells are able to produce a level of output, but currently not of the capacity to provide fully the required energy output to remove the requirement for fossil fuel based energy production. A third well drilling programme is now proposed to be used as a reinjection / production well to allow the two existing wells to have a combined potential generation capacity of 3MW of power.

Estimated cost of works excluding VAT: Range: between £2,500,000.00 and £4,000,000.00 GBP (EC$10,600,000 and EC$16,959,000)