The Government of Montserrat has launched a bold new phase in its commitment to the development of geothermal energy, with two new initiatives to attract direct investment in the sector.
Revitalisation of Montserrat’s Geothermal Infrastructure
The Ministry of Communications, Works, Labour and Energy (MCWLE) is pleased to announce that it has awarded the contract for the maintenance of the existing Geothermal Wellhead equipment. This first initiative aims to revitalise the existing geothermal infrastructure on the island, and to provide a technical baseline for the status of the existing wells.
Director of Energy, Kenrick Burke confirmed: “JRG Energy Consultants Ltd. out of New Zealand are the successful tenderers and will soon begin work to renew the wellheads in preparation for the development of a geothermal surface plant in Montserrat. This revitalisation work will verify the operability of the geothermal wells and provide important data for potential future investors in Montserrat’s geothermal capabilities.”
Representatives from the contracting firm are already in Montserrat conducting the initial site visit.
Upon signing the contract, Permanent Secretary of MCWLE, Colin Fergus said: “This renovation work comes more than seven years after the last phase of investment in the drilling of Montserrat’s geothermal wells. This work will not only confirm the condition of the wellheads and that adequate flow ascending to the surface, but it will provide expert maintenance training to the local team. I am very pleased to embark upon the partnership with JRG, and to kickstart a new phase to Montserrat’s commitment to a renewable energy sector.”
The well-head maintenance work is funded by the Foreign Commonwealth and Development Office (FCDO), Capital Investment Programme for Resilient Economic Growth (CIPREG) and is scheduled to be complete by the end of December 2022.
Request for Proposals for the Economic Development of Montserrat’s Existing Geothermal Wells
In addition to the restoration of the wellheads, the Government of Montserrat has launched a Request for Proposals (RfP) for the Economic Development of Montserrat’s Existing Geothermal Wells.
Potential bidders are invited to propose Build, Own, Operate and Transfer (BOOT) solutions to provide a surface plant that can provide a minimum capacity of 1.5 MW of energy. The awarded developer will be expected to construct a transmission line to connect the power plant to the local distribution grid, with the overall intent of contributing to developing Montserrat’s economic environment and energy security. It is anticipated that the entity selected to develop this phase will also provide innovative solutions to utilise excess energy that is generated during operations. The power generated during the company’s tenure will also be expected to be sold through a Power Purchasing Agreement (PPA) with the island’s local power provider, Montserrat Utilities Ltd, with the aim of ensuring good value for the island’s customers.
Martin Parlett, Vice Chair of Montserrat’s Energy Taskforce, and Head of the Programme Management Office said: “Geothermal energy in Montserrat has the power to transform. Previous project investment has confirmed the viability of major geothermal production, and the team in Montserrat has been working very seriously to build the economic, technical and commercial strategy to engage the market to take this national project to the next phase. We look forward to receiving a range of investment proposals for direct use energy production, as well as innovative secondary use, with benefits for Montserrat’s people and economic development.”
Governor Sarah Tucker commented that “As COP 27 comes to a close, Montserrat continues to drive forward its commitment for greener cleaner energy. The team at MCWLE and the PMO, in collaboration with The FCDO are turning plans into reality. I am excited about the continued development of Geothermal energy.”
Between 2012 to 2017, the Government of Montserrat sited and drilled three geothermal wells, MON-1, MON-2, and MON-3, costing an estimated £12.7 million, funded by the UK Government through DFID. Investment in geothermal energy is a major component of the Government’s integrated resource plan, to help it achieve its commitment to 100% renewable energy by 2030.
The Government of Montserrat is accepting proposals for the Economic Development of Montserrat’s Existing Geothermal Wells until 12th April 2023. Interested parties are invited to access the procurement documentation at the following link:
https://tenders.gov.ms/?page_id=9&id=375
