BRIDGETOWN, Barbados, CMC—The Barbados-based Caribbean Growth Financial institution (CDB) stated Monday it has taken a major step towards advancing regional geothermal vitality growth.
The CDB stated that it had signed £10 million (One GBP = 1.29 cents) Memorandum of Understanding (MoU) with the UK’s Overseas, Commonwealth & Growth Workplace (FCDO) and the Grenada authorities to help that nation’s geothermal check drilling.
The area’s premier monetary establishment stated that signing this settlement represents a major milestone within the Caribbean’s transition to a cleaner, extra sustainable vitality future, positioning Grenada and the broader area as leaders in renewable vitality innovation.
Prime Minister Dickon Mitchell stated that the multi-million greenback funding from the UK authorities is a major milestone in Grenada’s pursuit of a sustainable and resilient vitality future.
“By harnessing our geothermal potential, we’re taking a daring step in direction of decreasing fossil gasoline dependence, enhancing vitality safety, and creating financial alternatives for our folks. This partnership reaffirms our unwavering dedication to a cleaner, extra sustainable future,” he added.
CDB’s Vice-President of Operations, Isaac Solomon, stated the settlement displays the sturdy collaborations driving the Caribbean’s sustainable vitality transition.
“CDB welcomes the continued help of its growth companion, FCDO, and appears ahead to using these funds as a part of the Financial institution’s GeoSmart Initiative to boost Grenada’s Geothermal Drilling Undertaking.
“With Grenada’s dedication to advancing its geothermal growth, this funding will assist unlock sustainable, indigenous vitality sources, strengthening vitality safety and resilience,” he added.
In 2023, CDB authorized US$9.4 million for the Geothermal Drilling Undertaking – Grenada, which incorporates drilling two exploratory wells to evaluate the island’s geothermal potential.
In early 2024, FCDO pledged an extra £10 million to develop the drilling program. This might allow deeper and broader drilling on the identical web site, bettering the possibilities of accessing a commercially viable geothermal useful resource.
Geothermal vitality, generated from warmth beneath the Earth’s floor, offers a steady, 24-hour renewable vitality supply, not like photo voltaic and wind energy, that are variable. Floor research counsel Grenada’s geothermal assets might help a 15-megawatt energy plant.
This indicative potential have to be confirmed via check drilling, which is presently underway, adopted by manufacturing drilling. If profitable, the undertaking might cut back the nation’s reliance on diesel by as much as 55 p.c. Grenada’s main geothermal prospects are close to Mount Saint Catherine, the island’s highest level.
The CDB stated that its Geo Good Initiative mobilizes assets via strategic partnerships and offers financing and technical help to unlock geothermal potential, strengthen vitality safety, and improve regional local weather resilience.
The CDB stated that along with Grenada, different islands within the Jap Caribbean are additionally benefiting from funding beneath GeoSmart.
In 2024, CDB authorized a US$34.8 million mortgage to fund the development of a 10-megawatt geothermal energy plant in Dominica, whereas US$17 million has been authorized for St. Kitts-Nevis to drill manufacturing wells on the island of Nevis. CDB beforehand offered US$27 million to help the now-completed geothermal exploration in St. Vincent and the Grenadines.
