Globeleq Appoints Toyota Tsusho To Build Sh13.5B Geothermal Plant in Nakuru

Private power company Globeleq has chosen Toyota Tsusho Corporation (TTC) to construct a 35 megawatts (MW) Menengai Geothermal Project in Nakuru.

The engineering, procurement, and construction (EPC) contract and a long-term service agreement (LTSA) was signed by Globeleq CEO Mike Scholey, and TTC Africa Division COO Kazumasa Kimura in Tokyo, Japan today.

The Sh13.5 billion ($108 million) Menengai Project will be Globeleq’s first geothermal plant.

Financing of the project was inked last year with the African Development Bank, the Eastern and Southern African Trade & Development Bank, and Finnfund.

“We are very excited to partner with TTC, which has an established presence in Africa and a proven track record in Kenya’s geothermal sector,” Globeleq CEO said.

“Menengai will be Globeleq’s first geothermal plant and will contribute to reducing the cost of power in the country,” he added.

During COP27, President Ruto of Kenya and Prime Minister Sunak of the UK jointly committed to Kenya’s President William Ruto and UK Prime Minister Sunak jointly committed to fast-track green investment projects worth Sh500 billion in the country, the Menengai project included.

On completion, the project is expected to deliver clean, reliable and affordable baseload power to the national grid.

Construction of the project will commence in the first quarter of 2023, once financial close has been reached.

Globeleq will operate and maintain the power plant once it reaches commercial operations in 2025.

 The steam turbine and generator will be manufactured by Fuji Electric.

 “TTC has been involved in Kenya since 1962 and, through our fully owned subsidiary, CFAO, we have a strong footprint in Renewable Power Development, and Mobility, Healthcare, Consumer and Infrastructure sectors,” TTC Africa Division CEO Richard Bielle said.

“With our rich experience in the geothermal sector and our local communication network in Kenya, we, together with Globeleq, are excited to contribute to this project toward stable and affordable supply of electricity in Kenya,” he said.

Menengai is a greenfield geothermal project and part of the first phase of the wider Menengai complex, which is the second large-scale geothermal field being developed in Kenya after Olkaria.

Steam will be supplied to the project by Geothermal Development Company (GDC), a Kenya government-owned company 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.

The project will deliver clean and cheap baseload power to the national grid and enable GDC to monetise the available steam resources from the Menengai steam field.