With new funding, GDC eyes further geothermal drilling activities

Kifaru II rig of GDC on site at Paka, Baringo-Silali geothermal project, Kenya (source: GDC)

Kenya’s Geothermal Development Company (GDC ) is increasing work on geothermal exploration after the receipt of a Sh549 million ($5 million) grant by the Geothermal Risk Mitigation Facility for Eastern Africa, as reported by AllAfrica last month.

At the same time, the company further continues efforts to establish industrial parks in Baringo County that could tap geothermal heat and power generated from the wells drilled by the company.

“Heat parks will transform Baringo County and the country at large. A heat park offering reliable and affordable energy will create jobs and boost the economy of the region,” Mr Jared Othieno, the GDC Managing Director said.

In June 2021, GDC provided a tour to German Development Bank (KFW) officials, led by the bank’s country director for Kenya and Somalia, Mr Oska von Maltazan, who extolled GDC’s strategy of integrating fresh water projects in the communities.

“The progress so far is impressive. There are many highlights in this project… The most exciting was to see that huge well discharging steam and demonstrating the power of the earth. When fully harnessed, this energy will spur major economic growth for this country,” Mr Matazan said.

German KfW has been financing the first phase of the Baringo-Silali geothermal project with EUR 80 million ($95 million) supporting drilling of up to 20 exploration and appraisal wells, building roads and water supplies, feasibility studies and management consultancies.

There is hope that the financing for the project cay be renewed after the current arrangement terminates in August 2022.

With an estimated overall potential of around 3,000 MW, GDC plans development of up to 300 MW in capacity at the geothermal fields of Paka, Korosi and Silali by 2030.

Also last month, GDC reported having successfully drilled one of its most powerful wells.

There seems to be strong local interest by investors in establishing operations in the Naivasha Special Economic Zone with access to cheap geothermal power from Olkaria and Menengai, as well as easy access to railway connection to the port of Mombasa.

Source: AllAfrica