[Kenya] Marubeni to construct Kengen’s geothermal power plant
Kenya Electricity Generating Company Limited has awarded Japanese company Marubeni Corporation an engineering, procurement and construction contract for the construction of a 70 megawatts class geothermal power plant in the Olkaria area of Nakuru County.
This will be Marubeni’s first geothermal power plant project in Africa.
The project which is expected to be completed in 2021, involves construction of a sixth power generation unit within Olkaria1 Geothermal Power Station. The main components required for this project, such as steam turbines and generators, will be provided to Marubeni by Fuji Electric Co., Ltd. Japan.
It will be financed by an ODA loan from Japan International Cooperation Agency (JICA) and loans from European Investment Bank.
Geothermal power plants emit only a small amount of greenhouse gases and are moreover a stable source of energy as they are not disturbed by the weather. For these reasons, geothermal power plants are an important base load energy source, producing roughly 43% of the electricity generation in Kenya.
Peak demand in Kenya has been increasing by an average of approximately 5% annually. Marubeni is committed to meeting Kenya’s robust electricity demand and contributing to the Kenyan economic development.
The project is one part of the expansion Marubeni has been making into the renewable energy generation business. Marubeni has a power plant construction track record of more than 900MW from geothermal power plants.
Additionally, Marubeni has construction experience and power generation assets in solar, wind, hydro and biomass power plants all over the world. Marubeni aims to increase its net renewable energy generation capacity in the portfolio to approximately 20%, doubling the past target in 4-5 years.