Geothermal company to get Sh1.3b to drill more wells
NAIROBI, Kenya, Feb 22 – The Geothermal Risk Mitigation Facility (GRMF) has approved a Sh1.3 billion grant to the Geothermal Development Company (GDC).
The grant which will facilitate the drilling of up to six geothermal wells and support the development of key infrastructural works at the Baringo – Silali Geothermal Project in Kenya’s North Rift region.
The Baringo – Silali Geothermal Project being developed by GDC, covers three geothermal prospects (Silali, Paka and Korosi) from which the company is looking to produce a total of 300MW by 2030.
The GRMF grant will fund 40 per cent of the costs associated with the drilling of two geothermal wells in each of the three prospects and 20 per cent of the total costs incurred during the development of requisite infrastructural work in the project area.
“The next step is for GDC to give us a date and venue for the signing,” said Sylvain Degolmal Marketing Expert, GRMF, and African Union Commission who was leading the GRMF delegation.
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.