Globeleq, in partnership with Geothermal Development Company, has successfully achieved financial close on the Menengai geothermal project, a $117 million initiative situated in Nakuru County, Kenya. The project signifies a noteworthy advancement in sustainable energy efforts within the region.
Globeleq is poised to issue a notice to proceed to the engineering, procurement, and construction contractor, Toyota Tsusho Corporation (TTC), and their wholly-owned subsidiary CFAO Kenya Limited. Construction activities for the 35MW geothermal plant are scheduled to commence in the coming weeks.
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Representing Globeleq's inaugural venture into geothermal power, the Menengai project aims to provide clean, reliable, and cost-effective baseload power to the national grid. Additionally, it will allow Geothermal Development Company (GDC) to harness available steam resources from the Menengai steam field.
Under a 25-year project implementation and steam supply agreement, GDC will supply steam to the project. Once operational in 2025, Globeleq will manage the operation and maintenance of the power plant. The electricity generated will be sold to Kenya Power, the national distribution company, through a 25-year power purchase agreement.
Globeleq is actively expanding its presence in Kenya, where it currently owns and operates the 52 MWp Malindi Solar PV plant located north of Mombasa. Plans are underway to expand the Malindi Solar plant with an additional 40MWac of solar capacity and a 40MW/40MWh battery storage system.
See also: Kenya Sets Sights on Africa's Largest Wind Farm, Aiming to Boost Green Power Leadership
Mike Scholey, CEO of Globeleq, expressed enthusiasm about the Menengai project, citing it as an exemplary collaboration between lenders, independent power producers, and governments to harness natural resources for clean and reliable power generation. Scholey also extended appreciation to project partners, lenders at AfDB, Finnfund, TDB, EPC contractor TTC, and offtaker Kenya Power for their contributions to this milestone achievement.
