Geodynamics Limited (ASX:GDY) and its joint venture partner Kentor Energy Pty Ltd, a subsidiary of KGL Resources Ltd (ASX:KGL) are pleased to announce receipt of development consent relating to exploration activities for the Savo Island Geothermal Power Project in the country.
The Department of Environment granted the approval following review of the Savo Island Geothermal project environmental and social impact assessment (ESIA) and environmental management plan (EMP).
The ESIA and EMP provides a comprehensive guide to the monitoring, mitigation and remediation measures that will be implemented by Geodynamics for exploration drilling activities.
Geodynamics’ CEO Geoff Ward said with the approval of the ESIA and EMP and granting of development consent for exploration drilling they have secured all the necessary regulatory approvals to commence geothermal drilling activities on Savo Island.
“With regulatory approvals in place our focus is now on concluding negotiations with the Solomon Islands Electricity Authority (SIEA) and Solomon Islands Government on the key terms of the power purchase agreement necessary to underwrite the project.
“We are excited at the prospect of starting exploration drilling later this year to further progress this project that has material benefits for the Solomon Islands.”
The ESIA highlighted the potential positive impacts for the Solomon Islands from the proposed projects, by replacing imported diesel fuel with a sustainable locally produced electricity supply.
This would make the Solomon Islands less dependent on imported fuel, while also increasing reliability of supply at reduced end user prices.
The report also found that the geothermal project would more broadly benefit the Solomon Islands economy by contributing to socio-economic development through direct and indirect employment and training opportunities, as well as increased business and industry opportunities in Honiara and through the greater demand for goods and services to support exploration activities.
The development can be undertaken with low impact on the local environment at Savo Island, while providing employment training and small business development opportunities to the local community on Savo.