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Sosian Energy inks pact for Menengai III geothermal power plant

Wednesday, 24 Apr 2019
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Kenya’s independent power producer (IPP) Sosian Energy has inked a deal worth USD 65 million with Chinese company Kaishan Renewable Energy Development, a subsidiary of Zhejiang Kaishan Compressor.

The deal has been inked for building the Menengai III geothermal power plant in the Rift Valley in western Kenya. The project has necessary permits to construct, operate the plant and sell the electricity to Kenya National Power.

Under the contract the Chinese company has been tasked to drill geothermal wells and install pipes to transport steam to run the turbines of the geothermal power plant. Zhejiang Kaishan has also won USD 18 million contract to operate and maintain the future Menengai III geothermal power plant for a period of 14 years.

Upon completion the geothermal plant is projected to produce 34 MW of power. Sosian Energy, the owner of the plant, is one of the three PPIs selected for development of the Menengai geothermal project. The other PPIs selected by the public company Geothermal Development Company (GDC) are Orpower Twenty Two and Quantum Power East Africa.

The three geothermal power plants under development will produce a total of 105 MW. This energy will be sold to Kenya Power, the company that provides electricity utility.

Moreover, the Quantum Power East Africa is set to receive a loan of USD 29.5 million from the African Development Bank Group (AfDB) for development of the power plant while the The Climate Investment Fund (CIF) (part of the Clean Technology Fund (CTF) has also committed USD 20 million towards the project.

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