Published On:Friday, February 26, 2010

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FREEPORT -- Grand Bahama Power Company is pursuing the development of an liquefied natural gas (LNG) terminal on Grand Bahama in a bid to lower the cost of fuel for electricity generation, it was confirmed yesterday.

Alan Kelley, chief executive and president of Grand Bahama Power Company, said natural gas was being considered along with other alternatives to oil as a fuel source for the production of electricity on the island.

"Our majority stockholder, Marubeni/Taqa Caribbean, is working with the Government and Hutchison Whampoa to find an LNG solution that will fit with the scale on Grand Bahama, and which is focused on increasing industrial growth on the island," he said.

"I understand this is the brass ring that everybody talks about, and we are gradually working to make this happen."

Mr Kelley, speaking at the 12th annual Grand Bahama Business Outlook in Freeport, believes that the presence of LNG will significantly facilitate industrial growth and lower fuel costs for electric generation.

Finding an alternative to oil is a key strategy for Grand Bahama Power Company, said Mr Kelley, who noted that power rates will remain high until some alternative solution is implemented.

"I am supposed to point out that we have the lowest electrical cost in the region. I have said I cannot do that. I heard that, but I don't know if it is the case," he added.

"We understand that our rates our high and it will remain that way until we can see substantial progress in the various areas we are pursuing."

Grand Bahama Power Company is also performing wind studies at several points throughout the island to evaluate the potential of this power source for electricity generation.

Although data collection is still not completed, Mr Kelley revealed that the data collected so far shows promise for some level of wind power development.

"If wind power production proves to be economical to our customers, it is our intent to make that happen," he said.

Another technology that Grand Bahama Power Company is looking to develop is the production of electricity through the use of landfill gas.

"Although small in size, it is probably 1,000 kilowatts to 2,000 kilowatts, we like the idea of using waste by-products, in this case methane gas, to generate electricity," Mr Kelley said.

"It our intent is to help make this come about in such a way that it doesn't cost our customers more than what they pay today."

Mr Kelley also revealed that the company has just begun to consider the use of geo-thermal energy, using the earth's heat as a source of power generation.

"This work is in the early stages to determine if there is an application for this on Grand Bahama. If the technical aspect of this shows promise, then it there might to an opportunity for significant contribution here," he added.

"We hope to be involved in the exploration of that technical feasibility here soon."