Reykjavik Geothermal and partners pushing forward project in Ethiopia
This new development corresponds to the second phase of the 1000 MW project that the company and the Ethiopian government negotiated two years ago.
In a recent press release, geothermal development company Reykjavik Geothermal, announced the signing of the second half of the firm’s geothermal project in Ethiopia. This project is a 500 MW prospect in the geothermal area of Tulu Moye, about 150 km South of the capital, Addis Ababa. We reported on this yesterday.
This new development corresponds to the second phase of the 1000 MW project that the company and the Ethiopian government negotiated two years ago. Both entities signed a final power purchase agreement with Ethiopia Electric Power Corporation (EEPCo) , for the first part of this project; a 500 MW geothermal power plant in the Corbetti geothermal area under a special project company, named Corbetti Geothermal Company.
Quoting Eddy Njoroge, Chairman of Corbetti Geothermal regarding the signing: “today is historic in many ways, not only are we signing the first independent electricity contract in Ethiopia but also the largest geothermal project that has ever been done … not only in Ethiopia but in the whole of Africa. “
Corbetti Geothermal is owned by Reykjavik Geothermal, the African Renewable Energy Fund and Hekla Energy, a subsidiary of Iceland Drilling.
The aforementioned projects in Ethiopia will amount for a total of 1000 MWe, landmarking the largest private investment in energy projects in Africa, at USD $4 billion. These projects are part of the “Power Africa Initiative” that Barack Obama announced in 2013, having the US government pledged over USD $20 billion to develop said initiative.
The construction phase of the project has already begun and the first wells are expected to be finished by winter. The project sees a cooperation of several Icelandic companies, such as Iceland Drilling, ÍSOR, VSÓ, Mannvit and Verkís among others.
Source: Press Release by Reykjavik Geothermal