Sh6 billion grant for geothermal power search in Kenya

Photo/FILE

Geothermal Development Company inspect machines at a project site at Menengai Crater in Nakuru.

Geothermal Development Company has received a Sh6 billion (57 million euros) grant from the French Development Bank (AfD) for the procurement of rigs.

The grant will be used to accelerate drilling activities at Menengai in Nakuru and for training the company’s drilling staff.

The first phase of the Sh70 billion ($818 million) project is expected to produce 400MW of power by the end of 2015 to ease shortages in the country as Kenya warms up to the realisation of Vision 2030.

Drilling of the first well with a capacity of 10MW is complete, the second is almost done while drilling of the third is under way.

Speaking during the unveiling of the credit finance agreement with the AfD at the site on Friday last week, GDC managing director Silas Simiyu said his company will drill 120 wells in the first phase of the Menengai Project.

Mr Simiyu said procurement of the two rigs has been finalised and are expected in the country before the end of the year.

“With this grant from AfD, I believe that the realisation of the 400MW in the first phase of the Menengai Project will come sooner than later,” he said.

The managing director said the two rigs have the capacity of drilling up to 4,500 meters.

“This means with the procurement of the two rigs we shall be able to reach the deepest point to access geothermal power in the shortest time possible,” said Mr Simiyu.

AfD regional director Yves Terracol said he was impressed by the current pace of development of the project.

“I’m looking forward to a day when geothermal energy will easily be accessible in Kenya at an affordable price to accelerate development of the country,” he said.

The director said AfD has so far financed development of geothermal energy in the country to a tune of $300 million and pledged that AfD will continue to support the venture in future.

Recently, Prime Minister Raila Odinga and France Prime Minister Dominique de Villepin signed an agreement in Paris to develop renewable energy with AfD being part of the deal.

AfD was the first international financial donors to come on board to support GDC business development plan.

GDC has an ambitious target of developing 5,000MW from geothermal and to achieve this, the company requires $2.566 billion for the purchase of 12 rigs to drill 600 wells.