Friday, April 19, 2024

KenGen’s Geothermal Deals In Ethiopia Good For Kenya

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By George Wachira

My article in this column last week was on how Kenyan firms with oil and gas experience and capacity can venture into the fast growing natural gas developments in Mozambique. This is what KenGen, the Kenyan power generating firm, has done in Ethiopia where the company is “exporting” its geothermal technical capacity gained over the years.

And this is indeed a good story because firstly it proves that Kenya has sufficiently matured its geothermal technical “local content” to international standards. And secondly, because Kengen will earn foreign exchange for Kenya while providing external contracting exposure to its employees.

I chanced on this story in December last year when I passed a long and well controlled convoy of Kengen trucks carrying heavy equipment which I was informed was heading north to Ethiopia.

KenGen, an acknowledged pioneer in geothermal generation in Africa, was awarded two geothermal drilling projects in Ethiopia after competitively winning international tenders, which is a proof that the company has made the mark, and that it can compete for similar jobs elsewhere in Africa, especially in those counties that accommodate the Rift Valley and areas with volcanic geology.

The first of the two geothermal contracts in Ethiopia was awarded to Kengen and its consortium partners by Ethiopian Electric Power (EEP) for the supply of geothermal drilling rigs and accessories, as well as operation, and maintenance of the Aluto Langano Geothermal Plant which is on the Ethiopian Rift Valley about 200km south of Addis Ababa. The project targets production of 75 MW of geothermal electricity with a contract value of $6.0 million and is expected to take one year to complete. Read more>>

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