29 Jul 2013

Vanuatu company waiting for agreement to drill for energy

6:56 pm on 29 July 2013

The Managing Director of a Vanuatu company looking at drilling for geothermal power says the challenge is obtaining a power-purchase agreement.

David McDonald, in charge of Kuth Energy Ltd, says the government supports the proposed programme at Takara Hotel Pools in North Efate, and wants them to start drilling as soon as possible.

But he says they can't get the drilling rig to Vanuatu until they have an agreement with the country's utility company, Unelco.

Mr McDonald says once Unelco signs Kuth is confident it will provide environmentally friendly energy at 50 percent less than present costs, which are among the highest in the world.