The project is part of Kenya’s commitment, announced at COP27 in November 2022, to fast-track green investment projects worth $3.99 billion
By EB Content Studio
Kenya has kicked off construction of the 35-MW Menengai geothermal power project in Nakuru County as part of the first phase of the wider Menengai complex, the country’s second large-scale geothermal field developed after Olkaria.
The power plant is one of the six green investment projects – worth KES 500bn – that were fast-tracked by President Ruto and Prime Minister Sunak at the COP27 climate summit.
In a statement, the UK High Commissioner to Kenya Jane Marriott, underscored that the project reflected that the UK and Kenya go far when we go together – delivering mutual benefits for both our countries.
“This plant will both advance Kenya’s global leadership on climate change, and bring down the cost of power – showing that green growth is good for business, and good for Kenyans,” she noted.
The project is being developed by Globeleq, an Africa-focused independent power producer and project developer that is 70% owned by British International Investment and 30% by Norfund. Globeleq on Feb. 9 announced it awarded an engineering, procurement, and construction (EPC) contract and a long-term service agreement (LTSA) to Toyota Tsusho Corporation (TTC) for the Menengai project.
The $108 million project, Globeleq’s first geothermal plant, is slated to kick off construction during the first quarter of 2023 once financial close is reached. Commercial operation of the project, which will deploy a steam turbine and generator manufactured by Fuji Electric, is planned for 2025. Steam for the project will be supplied to the project by Kenya’s state-owned Geothermal Development Company (GDC) under a 25-year project implementation and steam supply agreement. “Once operational, electricity will be sold to Kenya Power, the national distribution company, under a power purchase agreement for the same timeframe,” Globeleq said.
The geothermal plant will generate 35MW of electricity, providing 750,000 Kenyans with affordable, clean energy.
During construction, it is expected the project will create approximately 200 job opportunities for Kenyan workers. Upon operation, it will provide jobs for 35 to 40 permanent staff and contractors.
This makes it the second project to have construction commence. Exactly one month after the summit in Egypt, construction began at Nairobi Railway City – a green rail-centred urban regeneration project in central Nairobi.
These investments are flagship projects of the UK-Kenya Strategic Partnership – an ambitious five-year agreement which is unlocking mutual benefits for the UK and Kenya.
At the UK-hosted G7 in Carbis Bay two years ago, world leaders committed to build a new Global Partnership for Infrastructure. These projects are examples of predictable, transparent and reliable investments by the UK, which do not load Kenya with unsustainable debt.
