Assessing the Potential of a Caribbean-based Green Hydrogen Market Using Excess Geothermal
The energy systems of Grenada, Saint Vincent and the Grenadines, Saint Lucia, Dominica, and Saint Kitts and Nevis are highly dependent on fossil fuels. Estimates and drilling results show these countries have 160 MW of geothermal energy production capacity. However, this capacity is significantly greater than the local demand. This situation provides opportunities to use the excess geothermal energy in creative ways that can promote the energy transformation in the Caribbean. Two examples are exporting the excess geothermal power to nearby islands or using it for electrolysis to create green hydrogen—a clean and versatile energy carrier. The Inter-American Development Bank hired K&M for this assignment to assess the potential synergies between excess geothermal energy production capacity not needed for local use in the Eastern Caribbean and the creation of a Caribbean-based green hydrogen market.
K&M carried out a pre-feasibility assessment for green hydrogen production from geothermal power and commercialization in the Eastern Caribbean (EC) with a focus on Grenada, Saint Vincent and the Grenadines, Saint Lucia, Dominica, and Saint Kitts and Nevis. This included an electricity sector analysis, estimation of geothermal energy potential, and conducting a geothermal energy cost analysis. K&M also estimated the demand for green hydrogen for energy, industrial use, heavy transport, and petrochemical production in the EC and Trinidad and Tobago.
Our team identified the export opportunities for green hydrogen produced in the EC, as well as the required technologies and options for the production and export of green hydrogen. Additionally, an inter-island hub for green hydrogen logistics and international export was determined. The team estimated the volume of green hydrogen produced from excess geothermal power in the EC, assessed the investment needs for green hydrogen production from geothermal sources, and calculated the levelized cost of green hydrogen.
Furthermore, a cost-benefit analysis was conducted comparing green hydrogen to subsea transmission and battery storage. These activities contributed to the development of a preliminary business model for a green hydrogen network in the EC. As part of this work, technical, commercial, and regulatory barriers for a regional green hydrogen market were identified, potential business models to support the market’s development were analyzed, contractual schemes to deliver green hydrogen to T&T were identified, and the range of pricing for green hydrogen offered to key regional and international markets from T&T was determined.