Kenya Electricity Generating Company (KenGen) announced on 24 October the signing of a Ksh5.8bn ($56m) contract to drill 12 geothermal wells for the 50MW first phase of the Tulu Moye geothermal project. The 520MW project is expected to be developed in four phases, with the first online around December 2021. Tulu Moye is owned by Reykjavik Geothermal (RG) and the Meridiam Infrastructure Africa Fund.
KenGen will drill ten production wells and two injection wells, as well as supply equipment and install a water supply system. The project involves construction of a steam gathering and injection system, a single unit water-cooled condensing steam power plant, a 230kV double bus switchyard and 230kV transmission line connecting to the Koka-Wakena line. Phases two and three will add 100MW each and the fourth phase 270MW.
A 25-year power purchase agreement and implementation agreement were signed with the Ethiopian Electric Utility on 19 December 2017. Iceland-based company Mannvit-Verkís (M-V) signed an agreement with project company Tulu Moye Geothermal Operations in October 2018 to become owner’s engineer. M-V will be collaborating with Langsvirkjin Power, ÍSOR and MGM Consult for the project. Financial close for phase one is expected in April 2020. Work on phase two will begin following phase one financial close.
The $2.2bn project is located on the 588km2 Tulu Moye concession, which includes a 100km2 core target area centred on the Tulu Moye volcano. The prospect area contains a young volcanic system which Reykjavik Geothermal and Ethiopian scientists have been studying since 2014. The sponsors believe the area contains one of the best geothermal resources in the world. This project is one of three that RG is involved with, alongside Corbetti and Abaya.
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