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KenGen and Akiira Geothermal to jointly develop Akiira geothermal field, Kenya

KenGen and Akiira Geothermal to jointly develop Akiira geothermal field, Kenya Drilling rig at Akiira (Courtesy of MunichRE)
Carlo Cariaga 30 Aug 2022

The joint venture deal between KenGen and Akiira Geothermal marks the first time that KenGen has entered a deal with an Independent Power Producer for geothermal development.

KenGen has closed a deal with the Akiira Geothermal Ltd (AGL) for the joint development of the Akiira geothermal field in Kenya. A special purpose vehicle will be created after the deal with both companies holding equity stake. This is the first deal that KenGen has signed with an independent power producer (IPP).

The Akiira Geothermal consortium comprises US firms Marine Power Generation and Ram Energy, Danish fund DI Frontier Market Energy & Carbon Fund K/S (Fund 1) – as co-developer and lead equity partner – and local firm Centum Investment.

The foundation for the deal was created back in 2020 when AGL sought the expertise of KenGen to do a geoscientific study in the area following the drilling of two low-productivity wells.  Incidentally, the Akiira geothermal field is located near the highly productive Olkaria geothermal project operated by KenGen.

“The deal involves the entire project development and investment cycles, from exploration to wells development to construction of power plants at Akiira concession area,” said KenGen Resource Development and Infrastructure Acting Manager Cyrus Karingithi. He also said that the dry wells in Akiira are planned for conversion to reinjection wells.

Karingithi also revealed that KenGen has received another proposal for a joint venture from another IPP – African Geothermal International Ltd (AGIL). AGIL is currently developing the geothermal project in Mount Longonot but has suffered persistent delays due to land rights issues and resistance from the local communities. The proposal of AGIL is still under review, according to Karingithi.

Source: KawiHub