ETHIOPIA – Independent power producing company, Tulu Moye Geothermal (TMGO) has partnered with Kenya’s power generating company KenGen to build a geothermal power plant with an installed generation capacity of 150 MW.
The company has been undertaking various geological studies in the past several years and plans to build its power plant in Arsi zone, Tulu Moye locality near Eteya town.
The move comes after TMGO signed a power purchasing agreement with the Ethiopian government to develop and sell electric power in the country.
The agreement between the two companies was signed by Darrell Boyd, CEO of TMGO and Rebecca Miano, CEO of KenGen in the presence of Kenyan Ambassador to Ethiopia, Catherine Mwangi, and representatives of the Ministry of Finance.
Darrell BOYD said that KenGen is a reputable company which has a decade experience in geothermal wells drilling work.
“We look forward to starting our journey of exploration drilling here in Ethiopia with you. I know that it is going to be journey of success,” he added.
The contract between the two companies will see signed with KenGen drill 12 geothermal wells at a cost of between 5-6 million dollars for each well.
Each well is expected to be at least 2500 meters deep and drilling works are expected to start in January next year.
KenGen’s CEO Rebecca Miano said,“We have drilled over 300 wells. We want to assure TMGO that we will exert our best effort and are committed to deliver this project with excellence.”
TMGO anticipates generating 50 MW from the first phase of the geothermal power plant scheduled for completion in September 2022.
The company will invest more than 250 million dollars on the first phase of the project and has plans to build a second power plant that will generate 100 MW.
By 2024, TMGO anticipates that it would be able to generate 150MW of electricity to the national grid.
TMGO which was established in December 17, 2017 and is the second independent power producer to sign a power purchasing agreement with Ethiopia after Corbetti Geothermal.
The power company is owned by the French investment firm Meridiam SAS which has a 51 percent stake and the Icelandic geothermal company Reykjavik Geothermal which controls a 49 percent stake.