The approval from the Solomon Islands Department of Environment follows review of the project’s environmental and social impact assessment (ESIA) and environmental management plan (EMP).
Geodynamics said the ESIA indicated the potential positive impacts for the Solomon Islands from the proposed projects, by replacing imported diesel fuel with a sustainable locally produced electricity supply.
The move would allow the Solomon Islands to reduce the use of imported fuel and increase reliability of supply at reduced end user prices.
The report said that the project may benefit the Solomon Islands economy by contributing to socio-economic development via direct and indirect employment and training opportunities, as well as increased business and industry opportunities in Honiara.
Geodynamics CEO Geoff Ward said with the approval of the ESIA and EMP and granting of development consent for exploration drilling, the company has secured all the required regulatory approvals to start geothermal drilling activities on Savo Island.
"With regulatory approvals in place our focus is now on concluding negotiations with the Solomon Islands Electricity Authority and Solomon Islands Government on the key terms of the power purchase agreement necessary to underwrite the project," Ward added.
