Caribbean Geothermal Update

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WEST INDIES POWER HOLDINGS B.V.
Caribbean Geothermal
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CARIBBEAN GEOTHERMAL By Kerry A
McDonald CEO WEST INDIES POWER HOLDINGS
B.V. www.westindiespower.com
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What is Geothermal

• Geothermal is from the Greek words Geo
  meaning earth and Thermal meaning heat. It
  means heat from the earth.

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Geothermal Power is the use of super heated hot
water and steam located in the Earth (Geothermal
Resources) which are extracted by specially
designed wells (Well field) and allowed to
convert to steam when it reaches the
surface. That steam is then collected in pipes
(Gathering System) and sent to a geothermal steam
turbine which uses the steam to generate
electricity (Power Plant).
WEST INDIES POWER HOLDINGS
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Hottest Known Geothermal Regions
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World Geothermoelectric Production as of 2002
JAPAN 544 MW
RUSSIA 34 MW
USA 2,077 MW
ICELAND 198 MW
ITALY 631 MW
CHINA 28 MW
TURKEY 12 MW
PHILIPPINES 1,893 MW
PORTUGAL 16 MW
ETHIOPIA 7 MW
INDONESIA 807 MW
KENYA 109 MW
NEW ZEALAND 419 MW
CENTRAL AMERICA 309 MW
FRANCE 7 MW
MEXICO 870 MW

• 2009 total geothermal installed Capacity about
  10,000 MW
• Geothermal electricity production in the year
  2000 49,000 GWh

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There are more than 10Gigawatts (10,000MW) of
currently installed geothermal power worldwide
and plans to install an additional
5Gigawatts(5000MW) in the next decade.
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Islands with Geothermal Potential in the Caribbean

• Dominica
• Grenada
• Guadeloupe
• Martinique
• Montserrat
• Nevis
• Saba
• Statia
• St Kitts
• St Lucia
• St Vincent

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POWER GENERATION POTENTIAL OF THE CARIBBEAN
In 1999 a study by the United States Department
of Energy, based on all available information,
calculated that the islands of the Caribbean
could produce 10,000MW of Geothermal Power. Since
the power plants are modular in steam turbine
production units it can designed and constructed
to allow for an expansion of electrical
production capacity.
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Groups Active in Geothermal in the Caribbean

• West Indies Power Holdings B.V. (Netherlands
  Antilles) Headquarters in Charlestown, Nevis
• Dominica
• Saba
• St Vincent
• Nevis/St Kitts
• Caribbean Interconnect Project
• EDF/CFG (France) French Government Companies
• Guadeloupe
• Martinique
• UNEC Ltd. (Canada) Private
• St. Lucia

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West Indies Power

• Private Caribbean based Geothermal Power
  Developer owned by European banks and Caribbean
  interests
• Well funded fully integrated geothermal
  development company with its own geothermal
  exploration and production equipment, including
  geothermal drill rigs and a staff with over 100
  years combined geothermal exploration,
  development and operation experience
• Active throughout the Caribbean
• Currently developing a 40 MW Single Flash
  Geothermal Plant on Nevis ,which will be largest
  geothermal plant in the Caribbean, to supply
  electricity to Nevis and St Kitts
• Currently has geothermal projects in Dominica,
  Saba, Nevis and St Vincent
• Developing the Caribbean Interconnect Project

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EDF/CFG

• Two French State companies
• EDF- Electricite de France (State owned
  Utility)
• CGF- Compagnie de Francaise pour le
  Developpement de la Geothermie ( owned by State
  owned BRGM-French Geologic Survey)
• Active in Guadeloupe and Martinique
• Operates 15 MW La Bouillante geothermal power
  plant on Guadeloupe

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Uniting the Eastern Caribbean Inc

• Uniting the Eastern Caribbean Inc. (UNEC Inc.)
  is/was a private Canadian company ?
• Signed a Memorandeum of Understanding (MOU) with
  Government of St Lucia in 2004
• Currently dispute between a Robert Croghan and
  Qualibou Energy (Private Canadian Financial
  Company) as to who owns MOU
• No work has been done by either party on the
  project in St Lucia
• Little information available

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Dominica

• USDOE estimates potential of 1390MWs
• Geophysics and shallow drilling by French in
  1970s
• Geology and engineering by Dominica Geothermal
  Power Company in 1990s
• Part of OAS Study area
• Presently the subject of a two year EU study to
  evaluate geothermal resources in Wotten Waven
  area, study the feasibility of an undersea cable
  link Guadeloupe-Dominica-Martinique, and conduct
  an Environmental Impact Study
• WIP granted license in 2008 to explore and
  develop the geothermal resources in the Soufriere
  area. Currently conducting exploration work on
  Dominica

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Grenada

• USDOE estimates potential of 1100MWs
• USDOE conducted geological and geochemical
  surveys in 1999.
• No activity at present

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Guadeloupe

• USDOE estimates potential of 3500MW
• First operating geothermal plant in the
  Caribbean, a 4.2 MW geothermal power plant
  installed and operated by a EDF/CFG partnership
  at Bouillante in 1986 and has been in full
  operation since 1996.
• Plant was expanded to 15MW in 2004.

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Martinique

• USDOE estimates potential of 3500MWs
• EDF/CFG conducted geophysics and shallow drilling
  in 2004
• Results inconclusive and will require deep
  drilling to further prove resource

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Montserrat

• USDOE estimates potential at 940MWs
• BGS and Canadian company drilled shallow hot
  water wells in the 1970s
• BGS and MVO has conducted geology, geophysical,
  and geochemistry surveys
• Most prospective geothermal exploration area
  located in Exclusion Zone

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Saba

• USDOE estimates potential of 3000MWs
• USDOE conducted geology and geochemistry study in
  1998
• WIP signed agreement to explore for geothermal
  resources on Saba in 2008
• Exploration began in 2009

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Statia

• USDOE estimates potential of 0 MWs
• USDOE conducted geology and geochemistry work in
  1998.
• USDOE work showed that the island has a very low
  potential for geothermal resource development

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Saint Kitts

• USDOE estimates has potential of 500MWs
• USDOE conducted geophysical and geochemical
  studies in 1999
• Best location is at Brimestone Hill which is a UN
  World Heritage Site which forbids geothermal
  development
• Part of OAS Study area
• WIP will begin exploration work in St Kitts in
  2009

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Saint Lucia

• USDOE estimates a potential of 680MWs
• Drilled in 1970s and 80s by US, British, and
  Italian groups. Drilling showed poor geothermal
  flows and acidic steam.
• Government signed MOU with UNEC Ltd. of Canada to
  develop geothermal resources in 2004
• In 2005 the best geothermal development area at
  Volcano Park was declared a UN World Heritage
  Site which prohibits development
• Part of OAS Study area
• No current activity on the ground

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Saint Vincent

• USDOE estimates has potential of 890MWs
• WIP formed joint venture with Government to
  develop the geothermal resources on the island
• WIP conducted geological, geophysical and
  geochemical surveys in 1998.
• USDOE conducted geological and geochemical
  surveys in 1999.
• WIP plans to commence exploration in 2009.

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Nevis

• USDOE estimates potential of 800MW
• USDOE study in 1998
• Hot water wells drilled in 1960s
• OAS conducted SP geophysics with MIT in 2004 and
  found that island is covered with a volcanic cap.
  
• WIP was granted geothermal resource license in
  2007 completed exploration work and began slim
  hole drilling in January 22, 2008.
• On May 1, 2008, the Nevis 1 well was declared a
  commercial hydrothermal well by independent
  geologic consultants, making it the first
  commercial geothermal well in the OECS

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WIP Exploration Rig at Work
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Nevis 1

• On May 1, 2008, the Nevis 1 well was declared a
  commercial hydrothermal well by independent
  geologic consultants, making it the first
  commercial geothermal well in the OECS
• Temperature 500F (260C)
• Depth 3300 ft. (1005 m)
• Hot water flows beginning at 2500 ft. (762 m)
• Well head flow pressure of 100 psi (6.8 bars). .

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Nevis 2

• On September 1, 2008, the Nevis 2 well was
  declared to have found commercial hydrothermal
  temperature by independent geologic consultants.
• Temperature 498F (259C)
• Depth 2400 ft. (731.5 m)
• Steam flashing in borehole
• Well head pressure of 210 psi (14.5 bars).
• Nevis 2 is located 1.3 miles (2.1km) south of
  Nevis 1.
• WIP estimates drill proven potential of 300MW
  between Nevis 1 and Nevis 2

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Nevis 3

• On October 16th, 2008, the Nevis 3 well began
  producing steam stronger than either Nevis 1 or
  Nevis 2
• Temperature 450F (232C)
• Depth 2900 ft. (883.9 m)
• Steam flashing at wellhead more than 100 ft.
• Well head pressure of 260 psi (17.9 bars).
• Nevis 3 is located 2.5 miles (4km) south of Nevis
  1.
• WIP estimates drill proven potential of 500MW
  between Nevis 1 and Nevis 3

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Nevis40 MW Geothermal Power Plant Schedule

• Drilling of three 15 MW Production wells and one
  injector well to begin in July/August 2008
• Design and engineering of 2x5MW and 2x15 MW
  Single Flash Geothermal Power Plant began in May
  2008
• Study for undersea HVAC cable linking Nevis and
  St Kitts to be completed in July 2008
• Construction of the 2x5MW Single Flash Geothermal
  Power Plant for Nevis to begin in May/June 2009.
• Plant is scheduled for commissioning in 2nd
  Quarter of 2010.
• Construction of the 2x15MW Single Flash
  Geothermal Power Plant for St Kitts to begin in
  May/June 2009
• Plant is scheduled for commissioning in 2nd
  Quarter of 2011.

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Single Flash Geothermal Power Plant
Single Flash power plants use hot water
reservoirs. In Single Flash plants, the hot water
is separated from the steam which goes to
operates the turbine.
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Caribbean Interconnect Project
The Caribbean Interconnect Project is a WIP
program to establish a power pool in the
Caribbean by developing geothermal power plants
on islands that contain geothermal resources and
supplying electricity from those power plants to
the islands of the Caribbean by use of HVDC/HVAC
submarine cables. WIP estimates that it may be
able to develop and supply over 1000 MWs of
electricity based on available data.
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Undersea Electrical Transmission Cables
Cable is 3-core (triplexed) 500 sqmm (1000 kcmil)
conductors, 66 kV (69) kV XLPE insulation,
integrated optic fibers, steel wire armor. Such a
cable has a weight of 40 tons/km (64 tons/mile)
and a diameter of 150 - 160 mm (6 inch). The
cable is buried 1 meter below the sea floor
during instillation
Undersea HVDC (High Voltage Direct Current) and
HVAC (High Voltage Alternating Current) are used
extensively around the world. The longest
existing HVDC cable is the Norway Netherlands
Cable which is 700MWs and 700 kms in length. A
Converter Station is required with the HVDC to
change the DC to AC, There are proposals to build
a 1200 mile 2000MW HVDC cable from British
Colombia to southern California. HVAC cables are
used in distances not to exceed 150 miles and do
not require Converter Stations. Max depth is 1600
ft.
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Caribbean Interconnect
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Total Potential from Caribbean Interconnect

• Local Use Cable
  Export Potential Total
• Saba 2MW
  200MW 202MW
• St Vincent 15MW 200MW
  215MW
• Dominica 12MW 500MW
  512MW
• Nevis/St Kitts 10MW 500MW
  510MW
• Total 39MW
  1400MW 1439MW

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THE ENVIRONMENTAL IMPACTS OF GEOTHERMAL
PLANTSCO2 Comparison
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CO 2 Elimination

• The 35MW St Kitts-Nevis geothermal power plant
  will eliminate 166,000 tonnes of green house
  gases per year
• The Caribbean Interconnect Geothermal Power
  Plants will eliminate approximately 850,000
  tonnes of green house gases per year

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Benefits of Geothermal Power Generation

• Energy independency, security and sustainability
• Low electricity prices to the consumer
• Certainty over electricity prices in the long
  term
• Energy generation efficiency (90 to 95)
• Sharp reduction in CO2 emissions improves the
  environment and image of the tourism destinations
• Growing energy consumption easily and quickly
  addressed by adjusting peak capacity or scaling
  up
• Reduced prices of other utilities, by reducing
  costs, such as desalination of the sea water
• Spin off effects to the agriculture and tourism
• Attraction of new business sectors, which are
  using a lot of electricity, such as data hosting
  and processing centers

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• Thank You
• For more information contact
• Kerry McDonald
• k.mcdonald_at_westindiespower.com