30 Jul 2012

Vanuatu gives green light to geothermal power

10:31 am on 30 July 2012

An Australian geothermal energy developer has been given the green light to produce geothermal power on Vanuatu's main island.

Kuth Energy has been given government consent to establish at least two four megawatt geothermal power plants on Efate, which will displace the current reliance on diesel-based power.

Kuth Energy's Managing Director, David MacDonald says the government endorsed the company's plans after it comissioned an independent World Bank study on the viability of geothermal energy.

"The main findings from that report were that the targets that we've identified for drilling are the most prospective targets. They are keen on the idea of the two phase four megawatt plant start up that Kuth had planned. They've also come out and said that they've done a market study of the whole island to look at future demand and really see it as a game changer in their own words."

David MacDonald says he hopes Kuth Energy will generate more than 60 percent of electricity required on Efate from 2016.