The Kenyan electric company (KENGEN) won the bid to drilling wells at the Tulu Moye Geothermal project at a cost of 50 million USD. The drilling will begin in early January for the project that is expected to end in 2021.
Following a call for tenders issued by Tulu Moye Geothermal Operations, Kenya Electricity Generating Company (KenGen) was selected to implement the first phase of the 50 MW project. On Wednesday October 23 at the Hilton Hotel in Addis Ababa the CEO’s for the two parties agreed to a contract.
KENGEN, will drill 8 geothermal wells. Each well will cost over 6 million USD and Geo-scientific surveys will be conducted at the project site.
“We have the most expertise in Africa and it is really impressive to work next door in Ethiopia,” Rebecca Miano, CEO and Managing Director of KENGEN said.
The plant is being developed by Meridiam Infrastructure Africa Fund (an investment fund owned by the French company Meridiam) and the Icelandic company Reykjavik Geothermal (RG). The contract awarded to KENGEN is worth 52 USD.
For KENGEN, this is the second agreement in Ethiopia as it had already won a contract worth almost 77 USD with its partner, the Chinese company Shandong Kerui Oilfield Service Group, in April 2019, for the supply of equipment and the installation of 22 geothermal wells on the Aluto-Langano site in the Ethiopian rift where it is being developed by Ethiopian Electric Power (EEP), which is in charge of electricity production and distribution.
Tulu Moye Geothermal (TMGO), a joint venture between Meridiam and Reykjavik Geothermal (RG), is working on the first phase of a 50-megawatt geothermal power plant project in Tulu Moye, Ethiopia.
The Tulu Moye Geothermal project is led by French, US and Icelandic investors.
Back in 2018, the United States Trade and Development Agency, backed the project by granting 1.1USD to conduct a feasibility study for the first 50MW phase of the planned 520MW project. The site has been studied intensely by the Reykjavik Geothermal’s team and Ethiopian scientists.
The Tulu Moye Project, located in the Arsi Zone of Oromia Regional State, is being developed jointly by the French company Meridiam SAS, the Iceland-based Reykjavik Geothermal and TM Geothermal. Ethiopia has an estimated potential of generating 45,000MW from hydropower, solar, wind and geothermal sources.
“African countries should partners each other as we have the knowledge and expertise, the equipment to do so many projects as manifested today,” she adds.