St Kitts and Nevis secures US$20 Million loan for Geothermal Project

St Kitts and Nevis has successfully secured a US$20 million concessionary loan from the Saudi Arabia Fund in a major step towards harnessing its geothermal energy potential.  

Through a joint statement, Prime Minister Dr Terrance Drew and Premier Mark Brantley confirmed the development saying that the Saudi Fund for Development’s Board has approved the requested funding on concessionary terms. The statement added that this is a major step forward for this significant project and this now means that the drilling phase can proceed as the bidding process is finally completed.  

According to the information, geothermal exploration in Nevis commenced with an initial US$17 million loan from the Caribbean Development Bank which assisted in kick starting the drilling phase, but additional funding was needed to completely support the progression of the project.  

With the new loan now in place, the Federation is now equipped to continue its efforts to develop renewable energy resources and reduce reliance on fossil fuels.  

St Kitts and Nevis, in November 2023, passed a major resolution to prioritize the development of geothermal energy as a national initiative. This move now aligns with the country’s broader goals of sustainable development and energy independence.  

The recent statement by PM Drew and Premier Brantley also added that following the approval of a significant Resolution in the National Assembly of St Kitts and Nevis regarding the development of geothermal energy as a national priority, the Federal Government in Basseterre is working closely with the Nevis Island Administration to develop the geothermal resource on Nevis for the benefit of all people of St Kitts and Nevis. 

It was further emphasised that US$17 million was earlier secured from the CBD for the drilling phase and with the new approval, the project can move forward. 

The leaders have also extended their gratitude to the Saudi Fund for Development and the Kingdom of Saudi Arabia for showing their confidence in this project and in the island’s ambition to achieve its goal of becoming a sustainable island state.  

With this, the government has once again showed its commitment towards harnessing geothermal energy as a significant pillar of its thrust to transforming the energy sector and to achieve its stated national goals to curb carbon emissions as it helps in the international fight against climate change.