An Australian energy company is set to start drilling as part of a new geothermal project in Vanuatu.
Last week the Minister of Lands, James Bule, granted KUTh energy a licence to set up a geothermal plant on the main island of Efate.
KUTh's managing director, David McDonald, says that if a big enough reserve is discovered the results could be revolutionary for Vanuatu.
"We're putting this power plant on the north of the island of Efate, the main power demand is in Port Vila on the South of the Island. The power only extends 15km or so out of Port Vila. But already the transmission lines are now being extended and our power plant will allow them to be extended further. So it's really going to open up a complete coastal corridor for development."
David McDonald says the plant will also be good for the environment because most of Vanuatu's power is generated by diesel.