News: KenGen,Tulu Moye Geothermal Operations sign drilling contract

CEO of KenGen, Rebecca Miano,CEO of KenGen, and Darrell Boyd, CEO of TMGO, signed the drilling contract.

Mahlet Fasil

Addis Abeba, October 24/2019– A contract to begin drilling works for phase one of Tulu Moye project in Ethiopia was signed yesterday between Kenya Electricity Generating Company Limited (Kengen) and Tulu Moye Geothermal Operations PLC (TMGO) at Hilton Hotel in Addis Abeba.

CEO of KenGen, Rebecca Miano,CEO of KenGen, and Darrell Boyd, CEO of TMGO, signed the drilling contract. “As top geothermal energy providers in Africa, KenGen has been an inspiration to the region. TMGO is thrilled to become development partners with such a powerhouse; this agreement is a sign of mutual trust and commitment to advancing geothermal energy, which in turn encourages sustainable development in Ethiopia and Africa as a whole,” said a statement released in connection with the signing ceremony.

Accordingly, TMGO will design, finance, build, operate and maintain geothermal powerplant including drilling of geothermal wells. “The project with an estimated capacity to generate 150MW will be developed in two phases (Phase one – 50 MW, Phase two-100MW) to produce electric power in the Main Ethiopian Rift Valley, Oromia Regional State, Arsi & East Shewa zones, and sell the power to the Ethiopian Electric Power.”

According to a pre-qualification request issued by TMGO in April 2019, the full first phase project consists of drilling of around ten production wells and two injection wells, construction of a steam-gathering and injection system and a single unit water-cooled condensing steam power plant, a 230kV double bus switchyard and 230kV transmission line to the Koka-Wakena 230kV line. It is expected to cost $260m, financed 75% with debt and 25% with equity.

In December 2017, Ethiopian Electric Power finalized contracts with TMGO for the 520 MW Tulu Moye Geothermal project. TMGO is joint venture between Meridiam, French based global investor & asset managing company & Reykjavik Geothermal Ltd, Icelandic based Geothermal developing company. On August 27 this year, the US Trade and Development Agency signed a grant agreement with TTMGO, to “support initial activities toward the development of the first 50 MW of the planned 520 MW Tulu Moye Geothermal project.”

KenGen, using their expertise, have agreed to takeover the drilling for phase one. “Since inception, the company has made considerable inroads in Kenya’s energy sector, growing over the years to the current sales market share of about 80% of the electricity consumed by Kenyans,” KenGen said in a statement.

At the Geothermal area along the Rift Valley, KenGen has power plants and wellheads running as baseload energy sources in Olkaria and Eburru. The area has installed capacity of 533.9 MW – with an additional 165MW due for commissioning this year. KenGen takes pride in being the largest geothermal producer in Africa and the 9th globally; and is also the first Kenyan company to earn Carbon Asset Fund under the Clean Development Mechanism (CDM).

“This contractual agreement is proof that African nations can work together in technology transfer, capacity building and skills development to support the continent in growing its geothermal sector,” said the statement by KenGen. AS

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