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UK DFID seems to agree on funding for next phase of geothermal project on Montserrat

Drilling site of MON-3 geothermal well in Montserrat, Caribbean (source: Bastien Poux)
Alexander Richter Alexander Richter 31 Oct 2018

The UK Department for International Development (DFID) has indicated willingness to fund next phase for the 2.5-3.5 MW geothermal development on Montserrat, UK territory in the Caribbean. There are though no news on next steps on the third well to be drilled.

The UK Department for International Development (DFID) has agreed to fund the next phase in the development of a geothermal power plant on Montserrat, as reported last week from the Caribbean.

According to the Hon. Minister of Energy Paul Lewis, the agency will source the funding to engage experts to move the geothermal plant development forward. “This expertise could take the form of a “Client Engineer” that will aid in the formulation of turnkey service for the project,” a release from Lewis’ ministry stated.

The expectation for the client engineer is to have experience in public private partnerships and be responsible to guide the development of the geothermal power plant on Montserrat.

Earlier this summer, the government met with DFID counterparts finalising the report on Early Market Engagement (EME). In attendance at the meeting were Permanent Secretary, Beverley Mendes, Energy Advisor Owen Lewis, and DFID representatives Moira Marshall, Allan Clarkin and Iftikhar Ahmad.

“There was a common consensus that the Early Market Engagement process was a success. There is a clear indication of interest in Montserrat’s geothermal prospects based on the number of well qualified geothermal players that participated in the exercise. It was further recognized that the current wells developed through investments provided by the UK Government has aided the advancement of Montserrat’s quest for geothermal energy.”

The EME proposed scope of works included, design, engineering, procurement, construction and partial financing services for Montserrat Geothermal 2.5 to 3.5 MW Plant Development.

Minister Lewis said the EME was an attempt to inform and engage the market and secure information.

There are no indication on the status of drilling and testing of the third well for the project, after drilling stalled.

A final decision on DFID funding contribution of the proposed geothermal plant has not been communicated to the government to date. Both parties have agreed to form a working group to determine how the geothermal project will proceed.

The third well would have allowed for expansion to at least 4.5 MW production using two production wells and the third being for reinjection.

 

Source: The Montserrat Reporter