Geothermal Funding
The facility will strengthen GDC’s technical and managerial capacities to undertake geothermal steam operations at the Menengai Geothermal Field.
Home NEWS BUSINESS GDC Set to Benefit from Sh76 Million Zealand-Africa Geothermal Fund

GDC Set to Benefit from Sh76 Million Zealand-Africa Geothermal Fund

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Geothermal Development Corporation (GDC) is set to benefit from a Ksh76 million ($0.7 million) New Zealand-Africa Geothermal Facility (NZ-AGF) to expand access to affordable, reliable and clean energy through the increased use of geothermal energy.

The facility is expected strengthen GDC’s technical and managerial capacities to undertake geothermal steam operations at the Menengai Geothermal Field.

The facility will provide GDC with technical assistance in the areas of steam-field operational management, geoscience and reservoir management, compliance processes and sustainable field development.

The National Treasury has signed a Memorandum of Arrangement (MOA) with New Zealand Ministry of Foreign Affairs and Trade (MFAT) and African Union Commission (AUC) to access the facility.

Commenting on the development, GDC Managing Director and CEO Eng. Jared O. Othieno said the facility would enable GDC to gain from New Zealand extensive knowledge in geothermal management.

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The NZ-AGF is being implemented under the New Zealand and the African Union Commission Partnership Arrangement.

“We are pleased to partner with New Zealand in delivering additional growth in our country’s geothermal industry. This facility will go a long way in increasing use of geothermal energy resources in the country,” said Othieno.

The focus is to provide technical assistance for geothermal development that will increase the number of geothermal energy projects meeting the investment criteria, expanding investment and local participation in the geothermal sector.

The NZ-AGF is being implemented under the New Zealand and the African Union Commission Partnership Arrangement.

According to GDC, NZ-AGF seeks to provide technical assistance and capacity building services to help alleviate barriers to geothermal development, improve understanding and regulation of geothermal resources and to help progress, de-risk and secure financing for geothermal development.

Earlier this month, GDC confirmed that they are ready to commence the exploration of the Paka Geothermal Project in Baringo. This follows the signing of an agreement for a $5 million (Ksh500 million) Geothermal Risk Mitigation Facility (GRMF) grant with the African Union.

The funding will go towards the cost of the exploration drilling program for the Paka Geothermal Project in Baringo.

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