Gov’t confirms talks with EGX Fuels for Tanna Geothermal Project

March 2, 2026 9:34 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara.

The Deputy Prime Minister (DPM) and Minister of Finance, Johnny Koanapo, confirmed that the government has been in discussions with a company known as EGX Fuels to explore potential options for a geothermal project on Tanna.

DPM Koanapo said EGX Fuels’ interest is not limited to Tanna, but also extends to Efate and other locations across Vanuatu where there is potential of good project that they can help.

He said that the Hawaii summit provided an important platform to engage with various funding agencies to discuss potential financing opportunities for these projects.

Koanapo said that, the energy sector and critical infrastructure, particularly airports.

 He noted that energy costs remain a major challenge, especially on Efate, Malekula, and other islands, where electricity prices can exceed 60 vatu per kilowatt-hour.

He mentioned that the government is actively pursuing viable options to reduce energy costs so businesses can operate more competitively, which is critical for economic growth.

On infrastructure, the DPM said the government highlighted the need for continued investment in airport development, with particular focus on Port Vila International Airport.

He confirmed that work on the terminal will begin soon, while plans are also underway for further upgrades, including a new terminal at Pekoa International Airport and improvements to other airports nationwide to enhance accessibility for citizens.

He stressed that reducing energy costs and strengthening critical infrastructure are essential to creating a business-friendly environment that supports private sector growth.

The DPM said these efforts will help attract more investors, generate employment, and lift economic activity, reaffirming the government’s commitment to positioning Vanuatu as an attractive and affordable investment destination.

He added that the geothermal agreement for Tanna is one of the key initiatives already agreed upon and currently being progressed.