100% privately funded $2.5 billion project creates
first-of-its-kind regional energy transformation
The Presidential Permit, required
for all cross-border energy transmission facilities under Executive Order
10485, represents a critical federal validation that unlocks the path for
significant private capital deployment for Caribbean energy infrastructure. The
permit authorizes CTDC to construct, operate, and maintain transmission
facilities crossing the international maritime boundary in the Mona Passage,
following a comprehensive interagency review process coordinated by the U.S. Department
of Energy.
Investment Structure and Benefits
Project Hostos is structured as a
100% privately financed initiative. The total project cost of $2.5 billion is
allocated across key components:
·
500MW combined-cycle
power plant
·
90 km of overhead
345kv AC transmission line
·
150 km of subsea
320kv HVDC transmission line
·
6 km cable stretching
from the port of Mayagüez in western Puerto Rico, underground, rising to
interconnect with the electric grid at the Mayagüez Substation
·
AC-to-DC Converter Stations
“Atabey Capital's early
commitment to Project Hostos reflects our conviction that private capital must
lead Puerto Rico’s energy transformation,” said Rafael Vélez, founder and President
of Atabey Capital, the Puerto Rico-based investment firm that serves as
CTDC’s founding investor and principal partner. “As a Puerto Rican company, we
understood that our island’s energy crisis requires bold, market-driven
solutions that don’t depend on scarce federal funding or the constraints of
public-sector development. Our initial investment enabled the feasibility study
and conceptual design, among other studies that were performed. We acknowledge
the compelling fundamentals for the project: essential infrastructure, proven
technology, and a regulatory framework that supports private development. This
Presidential Permit validates the work performed to date and allows us to work
on the next phases that will bring this project to commercial operation.”
A Reliable Energy Future For Puerto
Rico
The project centers on a
state-of-the-art 500MW combined-cycle power plant to be constructed in San
Pedro de Macorís, Dominican Republic, utilizing the latest gas and steam
turbine technology. The facility will transmit power through three cable
segments.
“This is the first major
milestone that we have achieved. Meanwhile, we continue to advance on other
milestones for the rapid execution of the Project,” said Tirso Selman, Project Director. “Our development timeline and cost
structure benefit significantly from building in the Dominican Republic, where
permitting processes are more streamlined and construction costs are 25-30%
lower than comparable Puerto Rico-based projects.”
For Puerto Rico, the project
addresses critical vulnerabilities exposed by recent hurricanes while
positioning the island to retire inefficient legacy energy generation. The
geographic diversification inherent in the cross-border design provides
unprecedented resilience. For example, when storms threaten Puerto Rico, power
continues flowing from the Dominican facility. If the Dominican Republic faces
challenges, the interconnection cable is bi-directional, capable of providing
power back to the Dominican Republic. In addition, the continuous LNG supply to
the Dominican plant eliminates the vessel swap interruptions that periodically
disrupt Puerto Rico’s current floating storage units, another critical
resilience consideration.
“Project Hostos will provide the firm,
flexible, and dispatchable baseload capacity Puerto Rico desperately needs to
replace aging thermal plants, reduce blackouts, and enable the integration of
more renewable energy,” Vélez added. “By connecting the two islands through
proven subsea cable technology used successfully across North America, Europe,
and Asia, we’re not just building energy infrastructure; we're building
resilience, reliability, and a bridge to Puerto Rico’s clean energy future.”
Key Partners Powering The
Cross-Border Energy Solution
CTDC is currently engaged in a
strategic partnership with Siemens Energy, which will supply the 500MW combined
cycle power plant and both AC-to-DC converter stations in the Dominican
Republic and Puerto Rico.
Environmental stewardship has
been central to the project’s design. Working for the past three years with
Jacobs, the international engineering firm, CTDC has optimized the cable routing
through various comprehensive marine and environmental surveys and horizontal
directional drilling for nearshore installation, key matters for the U.S.
Presidential Permit.
The advanced combined-cycle
technology provides approximately double the efficiency of Puerto Rico’s aging
steam units. This translates to annual operational savings of up to $300 million
while reducing emissions by 3.8 million tons of CO2 annually compared to
current generation sources. The plant’s fast-ramping capability provides the
flexibility to balance renewable intermittency while mitigating curtailment of
clean energy.
The project will create more than
1,500 construction jobs and generate over $150 million in economic impact
during the build phase. Once operational, Project Hostos will provide reliable
power to the equivalent of more than 600,000 Puerto Rican homes while establishing
the foundation for expanded Caribbean energy cooperation.
“The Hostos name itself—honoring
the 19th-century philosopher Eugenio María de Hostos, who championed Caribbean
confederation and shared prosperity—reflects our vision for this project,” said
Antonio Almonte, Minister of Energy and
Mines of the Dominican Republic. “This Presidential Permit allows an interconnection
that will transform the Caribbean energy landscape by demonstrating that our
islands are stronger together. As we advance toward regional integration,
Project Hostos establishes the technical and commercial framework for a true
Caribbean energy market, where resources, expertise, and infrastructure serve
the prosperity of all our peoples.”
For more information, visit www.caribbeantransmission.com or write to media@caribbeantransmission.com.
0 Comentarios