Globeleq and Geothermal Seal Deal for $117 mn Menengai Geothermal Project in Kenya

geothermal project

Globeleq, a power company in Africa, in collaboration with Geothermal Development Company (GDC), has reached financial closure on the $117 million Menengai geothermal project in Nakuru County, Kenya.

Toyota Tsusho Corporation (TTC) and its subsidiary, CFAO Kenya, will spearhead the engineering, procurement, and construction operations following the issuance of the notice to proceed by Globeleq. The construction phase for the 35MW Menengai geothermal project is set to kick off shortly.

For Globeleq, the Menengai venture marks the company’s foray into geothermal power. The project is strategically designed to deliver dependable, environmentally friendly, and cost-effective baseload power to Kenya’s national grid. Additionally, it offers Geothermal Development Company (GDC) an avenue to capitalize on the available steam resources from the Menengai steam field.

Under a 25-year project implementation and steam supply agreement, GDC will provide the necessary steam resources to power the project.

Globeleq, upon the plant’s commercial operations commencement in 2025, will oversee the operation and maintenance of the power plant. The electricity generated will be supplied to Kenya Power, the national distribution company, under a 25-year power purchase agreement.

This initiative underscores Globeleq’s commitment to bolstering its presence in Kenya’s energy landscape. The company already boasts ownership and operation of the 52 MWp Malindi Solar PV plant situated north of Mombasa.

In a bid to further expand its solar footprint, Globeleq aims to augment the Malindi Solar plant’s capacity with an additional 40MWac of solar capacity accompanied by 40MW / 40MWh battery storage.