Six Kenyan energy firms have been shortlisted to receive African Union (AU) funding to develop geothermal wells in Kenya. The geothermal development fund administered through AU-backed Geothermal Risk Mitigation Facility for East Africa(GRMF) seeks to fund, facilitate, and accelerate geothermal development in Eastern Africa.
AU set up Geothermal Risk Mitigation Facility for East Africa, (GRMF) in 2012 to encourage public and private sector investment into geothermal power generation.
According to GRMF, the 6 Kenyan firms alongside 11 others from Zambia, Tanzania, Uganda, Ethiopia and Djibouti will have their applications further evaluated ahead of possible funding.
In total, 17 expressions of Interest (EoI) were shortlisted from 12 companies consisting of 10 surface studies and 7 drilling programmes.
Two of the six Kenyan firms, Empakaa Energy Limited and Savannah Renewable Energy Limited applied for surface studies while Geothermal Development Company Ltd. (GDC), Kenya Electricity Generating Company (KenGen), Marine Power Generation Ltd and Sosian Energy Limited applied for Drilling Programme + Infrastructure. GRMF has, however, not disclose the amount each firm is seeking.
READ: Kenya Electricity firm (KenGen) wins geothermal tender in Ethiopia
Kenya has earned its place globally and regionally as a geothermal power frontier, emerging 7th in the recently released global geothermal power production rankings.
Through KenGen, Kenya has an installed geothermal capacity of 860 MW and around 10,000 MW of unexplored geothermal resource potential along the Rift Valley. KenGen produces 85 percent of Kenya’s geothermal power. Last year, KenGen won two multi-million-dollar tenders to drill, rig, and maintain geothermal wells in Ethiopia.
The GDC on the other hand has offered training on collection of geosciences data and information to geologists from four African countries in a move aimed at unlocking the continent’s unexploited green energy and natural resources valued at billions of shillings. Among them 12 geologists drawn from Uganda and Tanzania.
Uganda’s Bantu Energy Uganda Limited and Tanzania Geothermal Development Company (TGDC) are among the applicants for the GRMF funding.
The GRMF programme co-finances surface studies and drilling programmes aimed at developing geothermal energy projects – being a largely untapped indigenous and renewable energy resource. The geothermal development fund comprises approximately US $122 million available for funding.
