Globeleq and its local project partner Geothermal Development Company (GDC) have reached financial close on their 35 MW Menengai geothermal project in Nakuru County, Kenya.
The primary project lenders, led by the African Development Bank (AfDB) in the role of mandated lead arranger, include Finnfund from Finland and the Eastern and Southern African Trade & Development Bank (TDB). Toyota Tsusho Corporation of Japan and its wholly-owned subsidiary CFAO Kenya are set to commence construction activities. The steam turbine and generator for the project are being provided by Fuji Electric.
The Menengai project, valued at US$117 million, marks Globeleq's inaugural venture into geothermal energy. GDC will supply steam to the project through a 25-year project implementation and steam supply agreement. Upon achieving commercial operations in 2025, Globeleq will be responsible for the operation and maintenance of the power plant. The electricity generated will be sold to Kenya Power, the national distribution company, under a 25-year power purchase agreement.
