News

GRMF approves $13m drilling grant for Baringo-Silali geothermal project, Kenya

Kifaru II rig of GDC on site at Paka, Baringo-Silali geothermal project, Kenya (source: GDC)
Alexander Richter 24 Feb 2019

Geothermal Development Company (GDC) has secured a USD 13 million drilling grant for its Baringo-Silali geothermal project in Kenya.

The Geothermal Risk Mitigation Facility (GRMF) has approved a Sh1.3 billion ($13 million) grant to Kenya’s Geothermal Development Company (GDC), as reported by Capital FM in Kenya..

The grant has been awarded for drilling of up to six wells for the Baringo-Silali geothermal project, for which drilling already started as we reported.

It will further support key work on infrastructure for the project. The project is being developed by GDC and covers the prospect areas of Silali, Paka, and Korosi. The expected output of the project is expected to be 300 MW developed by 2030.

Funding provided now by GRMF covers around 40 percent of the costs for the drilling of two wells in each of the prospect sites and about 20 percent of the total cost of required infrastructure work on the sites. The official signing for the award will happen, soon as indicated by Sylvain Degolmal Marketing Expert, GRMF, and African Union Commission.

GDC committed to expedite and get the requisite approvals to the signing of the grant contract in a bid to fast-track the development of their Baringo-Silali geothermal project.

GRMF is a risk mitigation facility set up in 2012, by the African Union Commission (AUC), the German Federal Ministry for Economic Cooperation and Development (BMZ), the EU-Africa Infrastructure Trust Fund (EU ITF) and the UK Department for International Development (DFID).

The key mandate of the facility is to encourage the development of the geothermal energy sources in East Africa, by removing the high upfront costs that are associated with infrastructure development in green-fields and initial exploratory drilling in geothermal fields

Source: CapitalFM