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Kentor Gold Gets Geothermal License for Solomon Islands

Kentor Gold Ltd.’s energy division was awarded a geothermal-energy prospecting license in the south Pacific’s Solomon Islands as it seeks to tap the earth’s heat for power generation.

The islands’ government issued the three-year permit for Savo Island, 35 kilometers (21 miles) from the capital Honiara, the Australian company said today in a statement. Kentor plans to supply electricity to the city, which currently relies on diesel-fueled generation, it said.

Geothermal developments, which use energy from hot springs or underground steam fields to produce power, are attracting investments around the world as nations seek to meet rising electricity demand without adding to carbon emissions.

Kentor will study the feasibility of building a geothermal power plant on Savo to “potentially supply the entire Honiara grid and provide future extensions to other demand centers,” the Brisbane-based company said. If the study is successful, Kentor will start with a 20-megawatt unit, it said.

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