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Green Hydrogen H2 News

Dominica Takes a Step Forward with Green Hydrogen Geothermal Development

Anela DoksoBy Anela Dokso28/04/20233 Mins Read
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The Caribbean Island of Dominica has taken a significant step towards sustainable economic growth with the signing of a Framework Agreement to establish a joint venture company for the development of a large-scale green hydrogen geothermal complex.

The complex, which will be responsible for the production and sale of green hydrogen and electricity both for export and local consumption, is set to be the cornerstone of a green eco-industrial park in Dominica.

The agreement, signed between the Government of the Commonwealth of Dominica, the Dominica Geothermal Development Company Limited (DGDC), and Kenesjay Green Dominica Limited (KGDL), represents the first large-scale green hydrogen geothermal development in the Caribbean. The joint venture company will be established within the coming months and will be responsible for raising investment and delivering large-scale geothermal production for the green hydrogen complex.

Dominica, with land space of less than 300 square miles, has the potential capacity to develop over 1GW of geothermal power. The government has been seeking to pursue a Green Hydrogen Industrial Development Programme to achieve sustainable economic growth in the face of global realities, particularly climate change. The establishment of the green hydrogen geothermal complex aligns with this objective and marks a significant milestone towards monetizing Dominica’s significant geothermal resources on a large scale.

The joint venture between DGDC and KGDL will initially execute activities to de-risk the project, including the sharing of technical resources and capabilities, progressing the bankability of the project, engineering, marketability, and other feasibility studies, and progressing environmental and social impact assessment (ESIA) work. Subsequently, an investment framework for the project will be developed, which will guide the development of a special purpose vehicle to deliver the project.

The green hydrogen geothermal complex is expected to have a significant impact on Dominica’s economy, with the potential to create jobs, drive economic growth, and contribute to a reduction in greenhouse gas emissions. The development of the complex aligns with the government’s strategic objective of establishing a green eco-industrial park in Dominica.

The signing of the Framework Agreement was formally announced on April 26, 2023, during the first Hydrogen Summit held as part of the 15th Caribbean Renewable Energy Forum in Miami, Florida.

Potential challenges surrounding the project include the need for significant investment and the need to overcome technical and regulatory challenges. However, the establishment of the joint venture company and the development of a clear roadmap for the project represent a significant step towards addressing these challenges and unlocking the potential of Dominica’s geothermal resources for sustainable economic growth.

In conclusion, the establishment of a large-scale green hydrogen geothermal complex in Dominica represents a significant milestone towards sustainable economic growth in the Caribbean region. The development of the complex has the potential to create jobs, drive economic growth, and contribute to a reduction in greenhouse gas emissions. The signing of the Framework Agreement represents a clear commitment by the government and its partners to pursue a green hydrogen industrial development program and unlock the potential of Dominica’s geothermal resources on a large scale.

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