African Union grants $8.4 m to private geothermal project in Kenya

We reported on the project yesterday and now it is official, the Africa Geothermal International Kenya (AGIL) has today signed a Sh730 million (USD 8.4 million) grant with the African Union Commission (AUC) to facilitate the exploration of geothermal resource in Longonot.

Africa Geothermal international President and Chief Executive Officer Fassine Fofana said the company plans development of up to 140 MW and that “the drilling is expected to cost of Sh3.1 billion (USD36 Million), so this funding comes in handy.”

Fofana said they have completed the environmental assessments and obtained the required permits to begin an exploratory drilling program for the presence of a commercially viable resource. He said the full construction of the 140MW plant is at a cost of Sh52 billion and will employ up to 1,000 people.

“As a private sector project, Longonot will bring much needed investment into Kenya without burden on the taxpayers Geothermal power is among the lowest cost power available in Sub Saharan Africa and is cost effective without subsidies. It is estimated that during the construction phase, the Longonot geothermal project will employ up to 1,000 people,” he said.

Source: Capital FM