The Commonwealth of Dominica has signed a Framework Agreement with Kenesjay Green Dominica Limited (KGDL) to establish a joint venture company for the Caribbean’s first large-scale green hydrogen geothermal development. The agreement will be a significant step forward in Dominica’s pursuit of sustainable economic growth through the development of green energy.
Dominica has the potential to develop over 1GW of geothermal power, and this project is part of its Green Hydrogen Industrial Development Program, which aims to monetize its vast geothermal resources for export and local consumption.
The DGDC-KGDL joint venture company will undertake de-risking activities for the project, which involves the sharing of technical resources, marketability studies, and feasibility studies. Following these activities, an investment framework for the project will be created, which will guide the creation of a special-purpose vehicle to carry out the project.
The project will also form the cornerstone of Dominica’s Green Eco-Industrial Park, which the government has declared a strategic goal. This Framework Agreement paves the way for the establishment of a geothermal exploration and resources concession, which will promote the production, local consumption, and international export of green hydrogen and its derivatives, such as green ammonia.
The signature of the Framework Agreement was announced during the first Hydrogen Summit, which was hosted as part of the 15th Caribbean Renewable Energy Forum in Miami, Florida, on April 26, 2023.
This project is expected to be a game-changer for Dominica, demonstrating its commitment to sustainability and reducing its reliance on imported fossil fuels. The development of green hydrogen and green energy will help to create jobs, promote economic growth, and reduce the carbon footprint of the island.