Geodynamics gets key consent for 37-MW Savo Island geothermal plan

Jun 25, 2014 - Australian firm Geodynamics Ltd (ASX:GDY) said today it has secured development consent for its up to 37-MW geothermal project on Savo Island so now it has all permits in place to kick off exploration drilling later this year.

The geothermal energy company is developing the project in the Solomon Islands in a joint venture with a unit of Australian company Kentor Gold Ltd (ASX:KGL). Under the two-stage earn-in agreement with the latter, Geodynamics can take a stake of up to 70% in the project.

The partners now aim to finalise negotiations with the Solomon Islands Electricity Authority and Solomon Islands Government on the main terms of the power purchase agreement (PPA) needed to underwrite the geothermal project.

In April 2013, Geodynamics and its joint venture partner said they had identified a geothermal resource in the Solomon Islands that could support a plant of some 37 MW. According to Geodynamics’ website, the Savo Island facility may produce first power as early as 2017 if the planned exploration drilling campaign of four slim hole wells in the dry season of 2014 gives promising results.

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