Dominica signs Framework Agreement for Caribbean’s First Industrial Scale Green Hydrogen Geothermal Development
The Commonwealth of Dominica’s government has signed a Framework Agreement that will kickstart the Caribbean’s first large-scale green hydrogen geothermal development. This landmark deal represents a huge step forward by a Caribbean island in monetising its enormous geothermal resources on a big scale, including the generation of green hydrogen and green energy for export and local consumption.
This Agreement establishes the framework for a Joint Venture Company to be formed in the coming months, which will be responsible for obtaining funds for and delivering large-scale geothermal production for a Green Hydrogen Complex. This Complex would form the cornerstone of Dominica’s Green Eco Industrial Park, which the Dominican government has proclaimed a strategic goal.
Dominica, a Caribbean island with a land area of less than 300 square miles, has the potential to develop more than 1GW of geothermal power, and its government has been pursuing a Green Hydrogen Industrial Development Programme in order to pursue sustainable economic growth in the face of global realities, particularly climate change.
The Dominica Geothermal Development Company Limited (DGDC), a state-owned special purpose vehicle to spearhead activities leading to the harnessing of geothermal resources for the primary purpose of producing and selling industrial energy commodities within and outside the Commonwealth of Dominica, is also a party to the Agreement.
The other party to the Agreement is Kenesjay Green Dominica Limited (KGDL), a subsidiary of Kenesjay Green Limited, a Caribbean-based project development business focused on the development of industrial-scale decarbonisation projects. Kenesjay Green is currently creating the $250 million USD NewGen Hydrogen Project, which will be located in Trinidad and Tobago’s Point Lisas Industrial Estate.
This Framework Agreement lays the groundwork for these parties to work together to build a Geothermal Exploration and Geothermal Resources Concession. As a result, key government objectives such as the establishment of a Green Industrial Eco-Park Project for the development and use of Geothermal Power for the production, local consumption, and international export of Green Hydrogen and its derivatives, such as Green Ammonia, will be pushed forward.
The DGDC-KGDL Joint Venture will initially carry out activities to de-risk the project. This involves the sharing of technical resources and expertise, the advancement of the project’s bankability, engineering, marketability, and other Feasibility Studies, and the advancement of Environmental and Social Impact Assessment (ESIA) studies. Following the de-risking activities, an Investment Framework for the Project will be created, which will serve as a guide for the creation of a Special Purpose vehicle to carry out the project.
The signature of the Framework Agreement was formally announced on April 26, 2023, during the first Hydrogen Summit, which was hosted as part of the 15th Caribbean Renewable Energy Forum in Miami, Florida.
