Globeleq acquires funding for Menengai geothermal project, Kenya
Investment firm Globeleq has signed a financing agreement with the African Development Bank (AfDB), the Eastern and Southern African Trade and Development Bank (TDB) and Finnfund for a USD72 million debt funding for the Menengai geothermal project in Kenya. Funding will go toward the construction of a 35-MW geothermal power plant in Menengai which is started to commence by 1Q 2023 with target COD in 2025.
In 2021, Globeleq acquired a majority stake in Quantum Power East Africa, one of the three developers who have each been awarded with build-own-operate contracts for 35 MW geothermal power plants in the Menengai geothermal site. Globeleq is 70% owned by British Nation Investment and 30% by Norfund. Another 35-MW geothermal power plant in Menengai is already under construction by Sosian Menengai Geothermal Power.
The announcement follows the recent joint commitment by the Kenyan and UK Governments at COP27 in Egypt to fast-track green investment projects worth KES500 billion in the country, including the Menengai project.
“As an active participant in the Kenyan energy sector for many years, the Menengai geothermal project is our first geothermal project. It fully aligns with our focus on quality investments which utilize renewable energy sources to create clean, reliable and cost-effective energy for the country and be an active part of the solution to the climate crisis. We are very excited to collaborate with our partner GDC in bringing this important project to fruition and look forward to further developing the Menengai geothermal complex.” said Globeleq CEO Mike Scholey.