June 9 (Renewables Now) - Africa-focused independent power producer (IPP) Globeleq on Thursday turned the sod on its first geothermal project which will be built in Kenya’s Nakuru County with a capacity of 35 MW.
The USD-108-million (EUR 100.3m) facility, dubbed Menengai, will mark the first phase of a larger complex that is designed to be the second large-scale geothermal field developed in Kenya after Olkaria. The project is expected to achieve financial close within the next two to three weeks, while the commissioning is expected in 2025.
Once up and running, the plant will be operated and maintained by Globeleq. Steam for the plant will come from state-owned Geothermal Development Company (GDC) under a 25-year project implementation and steam supply agreement. The generated electricity will be sold to local distribution company Kenya Power under a power purchase agreement (PPA) for the same period.
Globeleq, which is majority-owned by British International Investment, secured USD 72 million in debt financing for the project in December. The company has hired Toyota Tsusho Corp to handle the construction, while Fuji Electric will provide the steam turbine and generator.
(USD 1 = EUR 0.929)