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Geothermal Projects in the Caribbean for Potential Investment



Photo of the island of Nevis- Source: ThinkGEOEnergy

The Caribbean region is heavily dependent on petroleum for electricity production and economies are severely affected by escalating energy prices. The islands of the Eastern Caribbean are all of volcanic origin and have live volcanoes. Geothermal power is proven in the Caribbean with an existing geothermal plant in Guadeloupe in service since 1986.

Feasibility assessments have been conducted on several islands with St Lucia being one of the most extensively studied in comparison to all the other islands combined (in excess of $25m in current dollars) and St Lucia has had extensive drilling to prove up and delineate the resource.

Dominica has several volcanoes and geothermal power potential has been estimated to be as high as 600MW. Montserrat has a high potential estimate as well. St. Vincent and the Grenadines have an estimated potential of 100MW.


Country:         St. Lucia

St. Lucia is an Eastern Caribbean Island that is part of the Lesser Antilles  volcanic arc. The surface manifestation of the island’s geothermal activity is centered on its Sulphur Springs region that includes boiling mud pools, steam    fumaroles as well as hot springs. Extensive exploration of this resource has   resulted in the drilling of nine wells till date.

The resource has been extensively explored since the mid 1970’s and nine wells have   been drilled to date. Steam was found in five of the exploratory boreholes with one of the deeper wells returning steam and water at 235 degrees Celsius, creating ideal   conditions for electricity generation.

St. Lucia has 30 MW capacity in proven reserves with a surplus 140 MW  capacity in probable reserves. In terms of oil, the probable and proven  reserves are 60.1 million BOE (barrels of oil equivalent). St Lucia has a peak electricity demand of 56Megawatts and LUCELEC currently generates all of the electricity consumed on St Lucia through diesel generation. Geothermal power will cut St Lucia’s carbon footprint    significantly, enhancing its exotic destination reputation.

  • July 2010-A Term Sheet for the Power Purchase Agreement (PPA) with LUCELEC which contains all principal commercial terms under which power will be delivered was finalized. The PPA will follow in due course. Initial revenues are anticipated to be US$12 million growing to over US$100 million as the project is fully developed.
  • November 2010– Qualibou Energy Inc announced that it had entered into a due diligence period with a potential partner to fund the construction of a 20 Megawatt geothermal facility in ST. Lucia. The agreement will close on the 15th of December 2010 and the plan is for the companies to enter into a partnership agreement that will fund the $80 million USD required to complete the initial 20MW facility.
  • November 2010 – Qualibou Energy Inc. announced completion of an updated Geotherm Ex Inc. appraisal for our St. Lucia Sulphur Springs resource concession area. GeothermEx Inc., a Slumberger Company, and a leading geothermal consulting firm, has completed their analysis and estimates the Sulphur Springs concession area to have a much larger Proven resource value than earlier studies had indicated. The new appraisal by GeothermEx reports the proven resource of its St. Lucia project in the Caribbean to be 20MW, an increase of 67% over earlier estimates.

Project: Caribbean Geothermal Power Project

Investment: Total project investment of $60 million USD

Developer: Qualibou Energy- – Qualibou Energy Inc. is an emerging  renewable energy company with a growth strategy emphasizing greenfield developments. The company’s first geothermal concession is located on St Lucia.   Qualibou acquired the project through its reverse acquisition of UNEC Holdings, Inc.


Investor Contact
Qualibou Energy, Inc
Investor Relations
(702) 990-1984

For Technical information please contact
Mr. Steve Baker
604 562 1861


Country:         St. Kitts and Nevis

The geothermal project commenced in Nevis in 2009 with an initial completion date of late 2010. According to an agreement signed between the NIA and WIP, the company was responsible for funding the US$43million project. However, due to the worldwide financial meltdown in 2009, the company had suffered some setbacks.

  • Phase II of project is currently underway despite delays in the past- 10megawatt geothermal plant at Spring Hill is to be developed.
  • January 2011 is the date that this project will begin. The developers indicated in November 2010, that contracts were in place and the financing had been finalized with drilling to start in January. The rigs will arrive in January and the holes will begin drilling by February. The plant will be started for installation in March and the plan is to be producing power no later than the end of 2011.
  • West Indies Power in 2007/2008 drilled three wells one at Spring Hill one at upper Jessups and one at Hamilton. Those were exploration wells that allowed the developer to determine what the potential size of the resource here on Nevis is and what the chemistry of the resource is and how best to design the plant.
  • The West Indies Power noted that the plugged holes will mark the end to all the exploratory work and the US $14million the company had spent so far on Nevis to bring the project finally to fruition.

Project: Nevis Geothermal Project

Investment: Financiers from the Export Import Bank of America along with the Bank of Novia Scotia                                   have agreed to fund the US$31million required to complete the US$41million project in Nevis.

Developer: West Indies Power (WIP) Nevis Ltd– a Netherlands Antilles company, owned by                                                              Caribbean and European interests.  West Indies Power Holdings B.V. is currently                                                              developing geothermal projects on several  Caribbean islands.


Mr Kerry McDonald

West Indies Power

PO Box 368

Charlestown, Nevis, W.I.

Tele:  1-869-662-4032

Fax:   1-869-469-0792


Country:         Dominica

In 2010, the Government of the Commonwealth of Dominica through the Ministry of Public Works Energy and Ports – Geothermal Project Management Unit, put out a tender to procure the services of a drilling contractor to drill at least three geothermal wells in the Wotten Waven / Laudat  area.  The objective of the project is to prove the existence of high enthalpy geothermal resource suitable for commercial generation of electric power and to determine the capacity for sustainable exploitation. Services to be provided by the contractor include mobilisation and demobilisation of the drilling rig and associated equipment, drilling of at least three wells, provision of cementing, drill-pipe inspection, and vertical drilling expertise. The provision of drilling mud and related additives and well testing services will also be required.

In September 2010, The Dominica government says more than 14 international companies have shown an interest in developing the island’s geo thermal sector. The deadline for submission was October 25, 2010. The government is estimating approximately US$400 million to develop this sector and its potential to the level where it can generate and sell electricity. It has already entered into agreements to take advantage of the potential for geothermal energy given the fact that Dominica has the highest concentration of geothermal sources in the world.


Investment: Economic and financial capacity of candidate:

  • the average annual turnover of the tenderer in the past 3 years must be at least €15M
  • if it is the sole tenderer it must have access to sufficient credit and other financial facilities to cover the required cash-flow for the duration of the contract. In any case, the amount of credit available must exceed the equivalent of €5M
  • In the case of a joint venture, at least one (1) member shall have at least three(3) projects of an aggregate amount of at least €10M

Developer: Developers wanted- The award criteria shall be Price.

Contact: The Project Management Unit,

Ministry of Public Works, Energy and Ports,

Government Headquarters Roseau.

Telephone: (767) 266- 3616/8/; 266 -3294/3296 Fax: (767) 448-0182.



Country:         St. Vincent & the Grenadines

There is currently a standing geothermal MoU between the government of St. Vincent & the Grenadines and a private developer for future geothermal development.

The private developer has exclusive rights and tax incentives to encourage investment. Development will not be from government’s budget and a reasonable rate for electricity generated to be sold will be established.

Geothermal development agreement was signed in January 2010.

Past preliminary studies, indicate that there is a potential to develop up to 100 MW of geothermal power from the resources that are mainly located near the Trinity Falls in St. Vincent.

Project: Geothermal MoU

Investment: Equity financing/ investment needed.

Developer: To be identified.


Leonard Deane,


Energy Unit,

Kingstown, St. Vincent & the Grenadines

(784) 450 0369


Country:         Montserrat

In 2008, the Montserrat Geothermal Evaluation Study was approved with the project starting in 2009 and phase 2 ending in 2010. Phase 3 involves a small diameter test drilling to attempt to prove the resource and needs financing to be completed to proceed towards attracting investors for development.

Montserrat has a potential resource of 900 MW.

Project: Montserrat Geothermal Evaluation Study

Investment: $4,000,000 USD is required to complete Phase 3 of study and prove resource.

Developer: Private investors with equity / developers wanted.

Contact: Montserrat Geothermal Company

Investor Relations

Mr. Ray Tyson

(664) 491-2498

(664) 491-2848


Country:         Grenada

In 2010, the Government of Grenada announced that it was currently drafting legislation to regulate the use of geothermal energy and negotiating a resource agreement with GRENLEC.

During the year 2011, it is anticipated that several exploratory wells will be drilled in the Mt. St. Catherine region to confirm the presence of usable geothermal energy.

The preliminary studies have shown that Grenada can get up to 20 mega watts of geothermal energy from its highest mountain – Mount St. Catherine – by 2013; and up to 50 mega watts by 2015.

Project: Developing geothermal energy for electricity supply in Grenada

Investment: To be determined

Developer: Private investors with equity / developers wanted.


Vernon Lawrence

General Manager

GRENLEC- Grenada Electricity Services Ltd.

(473) 440 – 2097


Source: Caribbean Energy Information System (CEIS)

Category/ies:Regional News, Regional Projects, Request for Proposals.
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