Northern Mariana Islands seek $100 million loan from U.S. DOE for development
Saipan, Northern Marianas (source: flickr/ ctsnow, creative commons)
Alexander Richter
19 Dec 2011
The Northern Mariana Islands, an island group in political union with the U.S. is seeking $100 million in interest-free loan from the U.S. DOE for helping current development efforts, with drilling to start in early 2012.
Reported from the Northern Mariana Islands in the Pacific, “Gov. Benigno R. Fitial is seeking the help of Sen. Lisa Murkowski (R-Alaska) to secure a $100 million interest-free loan from the U.S. Department of Energy in line with the administration’s focus on geothermal energy production.”
“The Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands (CNMI), is a commonwealth in political union with the United States, occupying a strategic region of the western Pacific Ocean. It consists of 15 islands about three-quarters of the way from Hawaii to the Philippines.” (source: Wikipedia)
“The government has yet to award a contract to a firm that will investigate the viability of tapping geothermal power on Saipan.
Fitial said if after the contract is awarded and the drilling shows no viable geothermal power source on Saipan, then the CNMI government won’t push through with its plan to borrow money from the U.S. Energy Department.
But he said regardless of the outcome of the drilling, he expects Murkowski to visit Saipan early next year.
The governor said he would know more about the specific date of the visit after the National Governors Association meeting in February 2012.
Fitial, now the president again of the CNMI Republican Party, has long invited Murkowski to visit the CNMI not only on renewable energy but also for federalization and other issues affecting the CNMI.
Murkowski’s father, former Sen. Frank Murkowski, served as chair of the Natural Resources Committee and at the time, he was a source of assistance for the CNMI in the U.S. Senate. Since succeeding her father in the U.S. Senate, Sen. Lisa Murkowski continues to keep an eye on the islands, the Fitial administration said.
“She’s helping me with that $100 million interest-free loan from Department of Energy.Like I said, drilling must be done first.The contract is contingent on the result of the drilling,” Fitial said.
Lt. Gov. Eloy S. Inos, now heading the CNMI’s renewable energy matters, said the contract for geothermal drilling could be awarded in January or February. He said there were a few bidders that responded to the RFP. The CNMI got a $1.2 million grant from Interior for geothermal investigation.
He said after contract award, it could take several more months for the CNMI to have a good idea whether there’s really a viable geothermal energy source.
The Commonwealth Utilities Corp., which issued a request for proposal for companies to conduct geothermal investigation, believes that Saipan’s proximity to the active Mariana volcanic arc, extensional faulting, and the occurrence of shallow water wells with anomalous temperature suggest that sufficient geothermal resources may exist beneath Saipan to support generation of electricity using binary plant technology.
If it turns out from the experts’ investigation that it is feasible, then CUC will invite companies to bid on the actual development and commissioning of a geothermal energy power plant. If the results are negative, then CUC will have to continue with other renewable energy sources.”
Source: Saipan Tribune
