GLOBELEQ’S MENENGAI GEOTHERMAL PROJECT BREAKS GROUND IN KENYA
NAIROBI / LONDON – 8 June 2023: Globeleq, the leading independent power company in Africa and its project partner, Geothermal Development Company (GDC), hosted His Excellency Hon. Rigathi Gachagua, Deputy President of the Republic of Kenya, at a ground-breaking ceremony today to commemorate the start of construction of the 35MW Menengai geothermal project in Nakuru County. Hon. Davis Chirchir, Cabinet Secretary of the Ministry of Energy & Petroleum, and Prof. Njuguna Ndung’u, Cabinet Secretary of the National Treasury, were also present while Paul Ngugi, CEO of GDC, hosted the event. Her Excellency Jane Marriott, British High Commissioner to Kenya also attended today’s ceremony alongside Mike Scholey, Globeleq’s CEO.
Globeleq’s $108 million Menengai project will be the company’s first geothermal plant. It will deliver clean, reliable and affordable baseload power to the Kenyan national grid and enable GDC to monetise the available steam resources from the Menengai steam field. Globeleq expects the Menengai project to reach Financial Close within the next two to three weeks subject to the remaining conditions precedent being fulfilled by the Government. Globeleq will operate and maintain the power plant once it reaches commercial operations in 2025.
Menengai is a greenfield geothermal project and part of the first phase of the wider Menengai complex, which is the second large-scale geothermal field being developed in Kenya after Olkaria. Steam will be supplied to the project by GDC under a 25-year project implementation and steam supply agreement. Once the plant is operational, electricity will be sold to Kenya Power, the national distribution company, under a power purchase agreement for the same timeframe. Toyota Tsusho Corporation from Japan is the EPC contractor to the project. Fuji Electric will be manufacturing and supplying the steam turbine and generator.
Mike Scholey, Globeleq’s CEO said:
“We are honoured that His Excellency the Deputy President has taken part in today’s ground-breaking ceremony at Menengai. This will be Globeleq’s very first geothermal plant and our second project in Kenya alongside our Malindi Solar plant in the coastal region. Today’s event symbolises Globeleq’s commitment both to Kenya and to playing a leading role in delivering Kenya’s energy transition.”
Paul Ngugi, Managing Director & CEO, GDC added:
“This is an exciting moment for GDC and Kenya. Our efforts to de-risk the geothermal sector in Kenya has culminated in the ground-breaking for the construction of this 35 MW powerplant. At GDC, we hold in esteem our partnership with Globeleq as we march towards attracting investors and lowering the cost of power in Kenya.”
Director, Business Development – Head of East Africa.
George Cazenove, Fiona Gonyea
Globeleq, which is owned 70% by British International Investment and 30% by Norfund, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating more than 1,500MW in 14 locations across 6 countries, with a further 722 MW in construction and more than 2,000 MW of power projects in development. More details at www.globeleq.com.
The Geothermal Development Company Limited (GDC) is wholly state-owned corporation that was established in 2008 to serve as a vehicle for driving accelerated development of geothermal resources in Kenya. GDC’s primary role is to conduct geothermal resources exploration and production drilling with a view to mitigating risk associated with geothermal energy development. GDC’s long term objective is to become the national and regional expert in geothermal resources development and exploitation. For more information about GDC, please visit www.gdc.co.ke