Sign up Australia
Proactive Investors - Run By Investors For Investors

KUTh Energy awarded Vanuatu geothermal production licence

KUTh Energy awarded Vanuatu geothermal production licence

KUTh Energy (ASX: KEN) has been awarded a production licence from the Vanuatu Government to carry out geothermal development on the main island of Efate.

The company will now move on to carry out deep drilling and resources assessment, which will require the completion of agreements with key stakeholders including the landowners and state utility UNELCO.

KUTh will be required to finalise terms with landowners once the resource has been delineated and the exact location of production drilling and power plant construction are identified.

In the interim, the company will agree terms with landowners for exploration drilling with options for long term lease if successful.

It is also negotiating the final terms of the power purchase agreement with UNELCO. This is expected to be finalised during the current quarter.

This will allow KUTh to start a program of exploration and development that will lead to the commencement of construction of an 8 megawatt geothermal power plant within 36 months of the signing of the PPA.

UNELCO has also started extending the transmission infrastructure along the coastal ring road which will bring the transmission lines within about 10 kilometres of the proposed geothermal plant at Takara.

Once resource confirmation is complete the arrangements for connecting up Takara will be initiated.

KUTh has three resource targets within the licence area but will initially concentrate on the Takara resource area.

The 30 year production licence establishes a minimum tariff for geothermal power of 23.9 vatu (A$0.25) per kilowatt hour and the rights to earn carbon credits.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Register here to be notified of future KEN Company articles
View full KEN profile

KUTh Energy Timeline

Related Articles

September 19 2016
Despite bumps along the way, boiler optimisation firm Sabien Technology is making headway with its revised sales strategy.
Big tidal wave
That progress as a leading tidal power developer was underlined again today as the company announced that its latest turbine was deployed in record time.
Fuel cells
February 01 2017
Ceres has built up a significant head of steam over the past year with big manufacturers coming on board and trials of its prototype home power systems in the UK.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.