US$17 million in financing has been approved by the Caribbean Development Bank for the geothermal energy project on Nevis.
The financing is intended to support the drilling of up to two geothermal production wells and one injection well at the project site, which is located at Hamilton Estate on the western slope of Nevis Peak.
The project’s goal is to establish a geothermal power plant of 10MW capacity, which is more than enough to meet all the domestic electricity demand in Nevis, part of the federation of St Kitts and Nevis and one of the smaller islands in the eastern Caribbean.
“This funding is a watershed moment in our geothermal project. After years of pursuing geothermal energy, we can now proclaim with a high degree of certainty that our geothermal ambition is within reach,” said Nevis Premier Mark Brantley.
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“This project promises to be transformational for us, our sister St. Kitts and our neighbouring islands. No longer will we be subjected to the whim and fancies of the oil-producing countries. No longer will we be held hostage to fluctuating oil prices. No longer will global conflicts determine the price of our energy supply and cost of living to our people. There can be no question that geothermal energy will secure our energy independence and energy security.”
The possibility of a geothermal development on Nevis has been has been under way since as far back as 2004 but has gathered momentum in the last five years with drilling confirming the potential of the resource.
A challenge has been the drilling itself due to the hardness of the rock as Nevis Peak is volcanic. Indeed it is still a potentially active volcano, although there are no activity reports and no historical eruptions are known, with the last believed to have been about 100,000 years ago.
Geothermal project scope
The project scope includes support to the government and Nevis Electricity Company Ltd (NEVLEC) for project preparation, including preliminary surveys, surface exploration and environmental and social impact assessments, which are already ongoing, as well as infrastructure works, engineering, construction and drilling services and project management.
If the project achieves its initial goals, then there is potential for a phase two expansion to 30MW and the possibility for the geothermal energy generation to support the production and export of green energy commodities.
An RFI to identify interested bidders for the drilling campaign was issued by NEVLEC in September, with the prospect of the drilling of the first well commencing in June 2023.
Drilling is required to a vertical depth of approximately 1,200-1,400m. The highest formation temperature is estimated to be 290oC.
Currently almost all of St Kitts and Nevis’s electricity generation is dependent on fossil fuels.
Exploration on St Kitts has indicated a geothermal resource potential of up to 36MW on Mount Liamuiga, which like Nevis Peak is stratovolcanic, although with occasional signs of activity – the last in 1989 and the last confirmed eruption ca 200AD. As yet no development has taken place but plans are in hand to evaluate the potential of geothermal as part of the renewable energy mix for the federation.
Montserrat geothermal
Meanwhile the government of Nevis’s southern neighbour Montserrat is seeking proposals for the development of a minimum 1.5MW geothermal plant on a build, own, operate, transfer (BOOT) basis.
Three wells have confirmed the potential of the resource and the proposal is aimed for the economic development of two of these, with the third having collapsed.
