Globeleq selects EPC contractor for Menengai geothermal project, Kenya

Steam pipes at Menengai, Kenya (source: GDC)

Investment firm Globeleq has executed an engineering, procurement, and construction (EPC) contract and a long-term service agreement (LTSA) with Toyota Tsusho Corporation (TTC) for the 35-MW Menengai geothermal project in Nakuru County, Kenya.

Globeleq holds a majority stake in Quantum Power East Africa, one of the three developers who have each been awarded with build-own-operate contracts for 35-MW geothermal power plants in the Menengai site. In late 2022, Globeleq announced the signing of a financing agreement with the African Development Bank (AfDC), the Eastern and Southern African Trade and Development Bank (TDB) and Finnfund for a USD72 million debt funding for the Menengai geothermal project.

The USD 108 million Menengai project will be Globeleq’s first geothermal plant. Construction of the project is expected to commence during 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.

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).

“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. Menengai will be Globeleq’s first geothermal plant and will contribute to reducing the cost of power in the country.  Having signed these key project agreements with TTC after achieving a fully committed financing about a month ago, we will now work with the Government of Kenya to reach Financial Close and start construction as soon as possible,” commented Globeleq CEO Mike Scholey.

“We are very pleased to partner with Globeleq as their chosen EPC contractor for the Menengai geothermal project. 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,” added Richard Bielle, CEO for Africa Division of TTC and President of CFAO.

Source: Globeleq