Partnerships for Assessment Drilling and Development of Geothermal Resources in St. Vincent and the Grenadines Presented by: Melissa A. De Freitas Energy Unit Ministry of National Security, Air and Sea Port Development St. Vincent and the Grenadines

Introduction Population: 109, 373 (2013) Energy Profile: - Installed Capacity: 39 MW - Base Load: 12 MW - Peak Load: 21 MW Approximately 5.6 MW of installed capacity is contributed by hydropower

History of Geothermal Development in St. Vincent & the Grenadines Year Institution Results 1991 Geothermica Italiana Fumaroles appear to be linked to recent volcanic manifestations, rather than to a deep hydrothermal system. It is therefore recommended that no further geothermal exploratory work be made on the island of St. Vincent. 1996 Gerald W. Huttrer Geothermal potential is credible due to recent volcanism displayed by the La Soufriére volcano. Existence of a heat source is evidenced by fumaroles within the crater as well as by hot springs discovered in the Walibou River. GeothermEX Inc. Comprehensive geological and geochemical surveys support the theory that a geothermal resource is present on the Island of St. Vincent. Temperatures may range from 150-175 oC. 1998 Caribbean Power, St. Vincent Ltd. (Dames & Moore) Geochemical sampling confirms a deep reservoir-derived fluid. Resisitivity data (CSAMT) reveal low resistivity areas on the southwest flank of the La Soufriére volcano which support the indications of an active geothermal system. 1999 G.E.A St. Vincent has the potential to support 112 MWe . 2011 GeothermEX supports the previous studies indicating a geothermal resource potential. 2012 NREL NREL is investigating a distributed system utilizing directional well drilling and small modular power generation units 2013 Reykjavík Geothermal & Emera Inc. ON GOING The potential for Geothermal Development is not new to SVG, in fact various developers have being showing interest in St. Vincent for almost 25 years, but for unknown reasons pulled out before any development could have taken place

SVG Geothermal Challenges Risk Details Financial High upfront cost Challenging Terrain Geo-hazards (slope instability, flash floods, seismic events) SVG has a small electric load demand of 21 MW Regulatory No independent regulator Lack of a legal framework Resource/ Exploratory Dry/Unproductive wells Over-sizing of power plant due to over-estimation of recource. In addition to high upfront costs associated with development, SVG’s challenging terrain has been an additional deterrent to investors. The deeply-incised valley-ridge topography poses challenges to field work, rig and equipment mobilization, plant location and electricity T&D. Our physical location, as well as being a volcanically active island has placed us under the risk of natural disasters and other geohazards. Returns on such a large project with a small electric load demand of 21 MW proves to be a very expensive option that may have deterred previous investors. In countries like SVG with limited fiscal resources, this high economic risk and upfront cost generally mean that such projects go undeveloped.

Forming Partnerships The Government of SVG (GoSVG) entered into a Memorandum of Understanding (MOU) in January 2013 with Reykjavík Geothermal (RG) and Emera Caribbean Inc. The signed Letter of Intent (LOI) sets the ownership structure for the proposed Geothermal Company as well as proposes an equity partnership between Emera, RG and GoSVG. Technical support has been given by the Clinton Climate Initiative (CCI), JICA and New Zealand. EC Inc. is a subsidiary of Emera Inc in Nova Scotia. Emera has a regional foothold in Barbados, Dominica, St. Lucia, Bahamas. Additionally, SVGs close proximity to Bbdos may have created additional interest for underwater electrical interconnectivity. RG was founded by a team of geothermal experts and has been responsible for projects in over 30 countries.

Stakeholder Engagement Stakeholder engagement will build broad support for the project and understanding of geothermal energy as well as to manage public expectations Communication will be open and transparent for each phase of the project and as such all stakeholders will receive information via the most appropriate matters.

Technical Results Above: New and old craters of the La Soufriére volcano Below: Fumarole on the dome inside the new crater.

Technical Results Geochemistry: Geochemical analysis of thermal manifestations have indicated the presence of a high enthalpy resource located at the base of the volcano. A conservative estimate of temperature lies in the range of 200 – 300 oC, although it may in fact be higher. Throughout the years, many fluid and gas samples were taken from the hot springs found in the Walibou River and from the fumarole present on the dome inside of the crater. Recent samples taken in 2012 has remained more or less unchanged during the past 20 years.

Technical Results Geophysics: In October 2013, a team from RG assisted by local workers, have carried out geophysical surface explorations on the western and eastern flanks of the volcano. Several Magnetotelluric (MT) and TEM surveys were carried out to determine the exact potential of the geothermal resource and the boundaries of its reservoir. This will assist in to identifying suitable area(s) for drilling and ultimately determine whether the project is feasible. Early indications yielded positive results. However, there are some gaps in the data in areas that were inaccessible by foot. A preliminary resistivity survey was carried out in 1998 by Caribbean Power, SVG Ltd. It revealed low resistivity areas on the southwest flank of the La Soufriére volcano which support the indications of an active geothermal system.

Technical Results In September 2014, additional MT and TEM surveys were conducted mainly on the North-Eastern portion of the island that confirmed the presense of a high enthalpy resource >200 C

Shallow low resistivity layer interpreted as the Clay-Cap layer is mapped under all the survey area. Depth to this layer is most often 300-600 m. High resistivity underlaying the low resistivity CC denotes the upper part of the geothermal reservoir

Results of the Resistivity Survey as well as preliminary structural studies revealed that the prospective well field area be located on the east of the island, hence the focus of the LiDAR survey can be seen in the image.

From the slope analysis and the DTM, the following areas were deemed the best candidates for well location. A team consisted of representatives of RG, Emera, Stantec, VINLEC and the Government visited each site. Potential site locations were narrowed down from eight sites to two.

Next Steps for Development The GoSVG is currently seeking financing to lower the project’s total cost. -ADFD: $15 Mil -JICA -Development Bank Legal Framework - Geothermal Bill will be passed in Parliament in mid 2015 The GoSVG is also actively pursuing grants to lower the overall project cost

Next Steps for Development Environmental and Social Impact Assessment - baseline study completed Community Engagement - Emera/RG have already untaken meetings with residents in the north of SVG. Plans are being prepared for a third round meetings Business Model - will be presented at the end of June 2015.

Next Steps for Development Test Wells - RG/Emera are presently finalizing the assessment of the drill site. -Drill plan and conceptual well design has been prepared -Request for Proposals document is being prepared to issue to suitable qualified drilling contractors. Construction of a 10-15 MW geothermal plant