KUTh Energy reports significant progress on project in Vanuatu
Australian KUTh Energy Limited reports significant progress on its geothermal project in Vanuatu, with the resolution of two issues that held up the project , an arbitration case with the utility and a World Bank energy demand study.
In a release this morning, Australian geothermal developer KUTh Energy Limited reports it “has made significant progress on its geothermal project in Vanuatu, with the resolution of two issues that held up the project — an arbitration case with the electricity utility before the Vanuatu energy regulator and a World Bank study on future energy demands.”
In the release the company reports that the work on surface exploration is complete and that preliminary well design and draft drilling contracts have been prepared. The company has identified rigs and is progressing on contract negotiations.
KUTh also is in discussions on development funding with the European Investment Bank and has re-engaged the utility on power off-take.
An energy study of the World Bank is nearing completion and essentially would mean a trigger for KUTh Energy to move to the drilling phase of the project.
Investors have shown a strong interest in the project and there have been discussions with potential joint venture partners been initiated. The next steps for the company are to finalize the tariff and power take-of arrangements, close funding and proceed to drilling, with progress ongoing for all these items.
A podcast of an interview recorded today with KUTh Energy Ltd Managing Director David McDonald is available from the link following:
KUTh makes solid progress in Vanuatu
Source: KUTh Energy release (pdf)