Montserrat has received the United Kingdom's green light and
assurance of financial support for geothermal exploration.
Premier Reuben Meade on Tuesday signed a memorandum of
understanding (MOU) with the Department for International
Development (DFID) agreeing to a series of time-bound reforms,
which if successful could lead to increased capital investment
and technical assistance, funded by the UK.
Andrew Mitchell, Secretary of State for International Development
and Alan Duncan, Minister of State for International Development,
announced that the UK government will support Montserrat's plan
to "prove the size and potential of Montserrat's geothermal
reserves," a statement from Government House said.
"The funds will support Phase one of an exploratory well drilling
programme over a 12-month period starting May 2012. The funding
will cover all necessary site preparation and access works, all
drilling, supervision and well testing costs, and the technical
assistance required by the GoM to manage and implement this
project successfully.
"If exploration proves successful the wells could be used for
production. While there now seems a good chance that the
exploration will prove the resource. It is not yet certain that
Montserrat will be able to move to the production phase," the
release said.
Meade said a group presently drilling in Dominica will be on
island later this week to assess the potential sites and make a
decision on tendering for the project. He added that recent
discussions with Guadeloupe officials, who have been supporting
geothermal exploration in the region and are willing to look at
ways to assist Montserrat in its undertaking, put the island in a
good position now with UK backing to make geothermal a reality.
"We need to prove the resource and it will be a combination of a
test and production well. Depending on the resource coming out,
we will them consider what size of plant we will need for
Montserrat. Reports have said it will take a two to four megawatt
plant to handle the island's power needs," he added.
Once Phase one is completed, the intention is to see if private
sector companies would be interested in bidding for the Phase two
before seeking additional support from the UK government.
Charles Kirnon, Minister of Communications and Works said he
welcomed the decision by the UK and said they are hoping to meet
the 12-month target to assess the island's geothermal resource.
Since early 2010, DFID has been working with the government of
Montserrat to build up evidence for developing geothermal energy.
The overall impact of successful geothermal development in
Montserrat would mean significant improvement in energy security,
cheaper electricity generation, and reduced dependency on diesel.
Written by Nerissa Golden
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