Akiira Geothermal Limited has made significant progress in Kenya, particularly in the development of the Akiira Geothermal Power Plant. The project is expected to produce 70 MW of electricity.
Located in the Akiira-Ndonyo area, the geothermal field has been identified as a potential source of power. This area is rich in geothermal resources, making it an ideal location for the project.
The power plant is expected to be completed in 2025, with a total investment of $500 million. This investment will not only provide clean energy but also create employment opportunities for the local community.
Akiira Geothermal Limited is committed to ensuring that the project is environmentally sustainable and socially responsible.
For another approach, see: Berdychiv Machine-building Plant
Project Details
The Akiira geothermal field is located near the highly productive Olkaria geothermal project operated by KenGen.
A special purpose vehicle will be created for the joint development of the Akiira geothermal field, with both KenGen and Akiira Geothermal Ltd holding an equity stake.
The entire project development and investment cycles, from exploration to wells development to construction of power plants, are covered in the deal.
A fresh viewpoint: Why Is My Geothermal Not Cooling?
Power Stations
AGL owns and operates the Akiira One Geothermal Power Station, a 70 megawatt geothermal station to be built in the Greater Olkaria Geothermal Area at a budgeted cost of US$300 million (KSh30 billion).
The power station's construction costs will be split between borrowing and shareholder investment, with 70 percent borrowed from Standard Bank and the remaining 30 percent provided by the shareholders.
A significant grant of KSh86 million was received from the Overseas Private Investment Corporation (OPIC) in October 2014, as part of President Obama's Power Africa program.
For more insights, see: Avantha Korba West Power Station
KenGen to Jointly Develop Geothermal Field in Kenya
KenGen has entered a joint venture deal with Akiira Geothermal Ltd (AGL) to develop the Akiira geothermal field in Kenya.
This marks the first time KenGen has partnered with an Independent Power Producer (IPP) for geothermal development.
A special purpose vehicle will be created, with both companies holding an equity stake.
The Akiira Geothermal consortium includes US firms Marine Power Generation and Ram Energy, Danish fund DI Frontier Market Energy & Carbon Fund K/S (Fund 1), and local firm Centum Investment.
The Akiira geothermal field is located near the highly productive Olkaria geothermal project operated by KenGen.
KenGen plans to convert dry wells in Akiira to reinjection wells.
The joint venture deal involves the entire project development cycle, from exploration to construction of power plants.
KenGen has received another proposal for a joint venture from African Geothermal International Ltd (AGIL), but the proposal is still under review.
Discover more: Joint Stock Companies Act 1856
Progress and Plans
Akiira Geothermal Limited was seeking alternative financing to carry the project forward in April 2021.
Stakeholder engagement meetings were conducted by Jaama Resource Initiative, which included Akiira Geothermal Limited, civil society organizations, and officials from the Nakuru County Government.
The company planned to involve the affected communities in the phased implementation of the project, starting with scientific studies, followed by exploration works, and finally the development of the power plant.
Akiira Geothermal Limited was open to developing national capacity and capabilities through investment in developing and procuring locally available workforce, services, and supplies.
Community leaders pledged to work with the company on condition that it addresses the human rights concerns raised.
The Kambiturkana community, which was evicted from Loropil village, still requires support, and those who had property and livelihood means destroyed during forced evictions should receive compensation.
The affected communities are pushing back against harmful practices arising from the project's implementation.
Akiira Geothermal Limited and the county government have committed to addressing issues arising from project implementation through dialogue with the affected communities.
IAP supports communities and local partners who are further building their own capacities, alliances, and platforms to realize their collective priorities.
Recommended read: Community Interest Company
Engagement and Strategy
Akiira Geothermal Limited has a clear vision for growth, aiming to become a leading player in the geothermal energy sector in Kenya by 2025.
The company is committed to sustainable development, with a focus on environmental stewardship and social responsibility.
Akiira Geothermal Limited's strategy is centered around developing the Akiira geothermal project, which will have a significant impact on the country's energy landscape.
The project is expected to generate 154 megawatts of electricity, enough to power over 250,000 homes in Kenya.
Akiira Geothermal Limited is working closely with local communities to ensure that the project benefits them directly and indirectly.
The company has established a community development fund to support projects that improve the quality of life for local residents.
Akiira Geothermal Limited's engagement with stakeholders is a key aspect of its strategy, with regular updates and consultations with local communities, investors, and other interested parties.
The company's commitment to transparency and accountability is evident in its regular reporting and communication with stakeholders.
Featured Images: pexels.com
