Geodynamics nears initial drilling at 37-MW Savo Island geothermal project

Feb 20, 2014 - Aussie firm Geodynamics Ltd (ASX:GDY) said today it had filed an Environmental and Social Impact Assessment (ESIA) for its up to 37-MW geothermal project on Savo Island, noting that initial exploration drilling may commence in mid-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 KGL, Geodynamics can take a stake of as many as 70% in the geothermal project.

The ESIA, submitted to the Solomon Islands Department of Environment, has shown that the Savo Island project will positively impact the Solomon Islands as the renewable electricity will replace costly imports of diesel for power generation. Furthermore it will boost the reliability of supply at lower prices for the consumers.

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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