AUC signs Grant Contract with the Geothermal Development Company (GDC)2021-03-03T12:20:06+03:00

AUC signs Grant Contract with the Geothermal Development Company (GDC)

February 26th, 2021

Addis Ababa, 27 January 2021,

The African Union Commission (AUC) through its Department of Infrastructure & Energy and the Geothermal Development Company (GDC) have signed a GRMF Grant Contract for the Paka Drilling Programme.

The Agreement was signed by the AUC Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid, the Cabinet Secretary, National Treasury and Planning Hon. Amb. Ukur Yatani EGH and the Geothermal Development Company (GDC) Eng. Jared O. Othieno.

The AUC’s Project Manager for the GRMF, Mr. Atef Marzouk, and the Energy Expert, Mr. Sylvain Degolmal, congratulate GDC on this achievement. “The African Union Commission (AUC) would like to congratulate the Geothermal Development Company (GDC), a fully government-owned company in Kenya, on the signing of the Grant Contract.” GDC is the first public developer to sign the grant contract with AUC which both symbolic and encouraging. By reaching this milestone, GDC through the Kenyan National Treasury and Planning ministry has demonstrated the commitment of the Government of Kenya to expand the development of geothermal resources in the country. The AUC and its partners KfW, BMZ, EU Africa ITF and FCDO (former DFID), are committed to fund bankable geothermal projects with respect to GRMF Financial scheme across East Africa region.

The total grant for the Paka Geothermal Project is USD 5,162,910. This is split to support 40% of the total drilling cost (drilling and testing programme) and 20% of the total infrastructure development (infrastructure upgrade) cost of the project. Through this support, GDC will drill two deep geothermal wells and upgrade the existing infrastructure to allow further development of the geothermal resource in the Project area.

The Paka Geothermal Project is located in the vast Baringo – Silali Geothermal Province. It is part of the first geothermal drilling programme (Baringo – Silali), north of the equator within Kenya’s East African Rift System. The project is situated 25km north of Lake Baringo and approximately 120km south of the largest desert lake, L. Turkana.

The Paka Geothermal Project is an integral component of GDC’s strategic plan, where the company envisions the development of 1,065MW from geothermal sources by 2030. Of this, approximately 100MW will be sourced from the Paka Geothermal Project.

“GDC would like to appreciate the African Union Commission (AUC) and its partners KfW, BMZ, EU Africa ITF and FCDO for the highly-significant GRMF funding support aimed at mitigating the high risks associated with geothermal development. We look forward to a continued partnership with GRMF in the development of our geothermal projects moving forward,” said GDC MD&CEO on signing the Grant Contract.

Kick-Off Meeting for the 7th GRMF Application Round2021-02-24T14:07:32+03:00

Kick-Off Meeting for the 7th GRMF Application Round

February 24th, 2021

To all GRMF Stakeholders,

We are pleased to inform you that the kick-off for the 7th GRMF Application Round will approximately take place in June 2021.

During the Kick-off meeting, the GRMF programme will be introduced to potential Applicants and a comprehensive overview of the whole Application procedure will be provided. Furthermore, geotechnical requirements, procurement regulations & early contracting, as well as E&S requirements will be addressed. Participants will be able to ask questions.

Further information on the kick-off will follow shortly.

Best regards

Your GRMF Team

AR 6 – Bid Opening2021-01-29T18:45:41+03:00

AR 6 – Bid Opening

January 29th, 2021

Dear Developers,

We would like to inform you that the bid opening of the 6th GRMF Application Round will take place on 01 February 2021 at 03:00 p.m. (EAT).
You will be able to attend the opening ceremony via Zoom. Please find a respective link below:

Topic: Bid Opening Meeting
Time: Feb 1, 2021 03:00 PM Addis Ababa

Join Bid Opening Meeting

Best regards

Your GRMF Team

AUC signs Grant Contract with Tulu Moye Geothermal2020-12-14T12:01:16+03:00

AUC signs Grant Contract with Tulu Moye Geothermal

December 9th, 2020

Addis Ababa, 23 November 2020, the African Union Commission (AUC) through its Department of Infrastructure & Energy and TM Geothermal Energy PLC (TMGO) signed a GRMF Grant Contract for the Tulu Moye Drilling Programme.


The Agreement was signed by the AUC Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid, and the CEO of TMGO Mr. Darrell Boyd. The AUC’s Project Manager for the GRMF, Mr. Atef Marzouk, and the Principal Energy Expert, Mr. Sylvain Degolmal, congratulate TMGO to this achievement:

We would like to congratulate Tulu Moye Geothermal Energy PLC (TMGO) for achieving this milestone. Furthermore, AUC as the project executing agency for GRMF, plays the key role in the harmonization and coordination of geothermal energy exploration and development in East Africa. Therefore, seeing more drilling as the one going on actually in Tulu Moye, Ethiopia is very encouraging. AUC and its partners KfW, BMZ, EU Africa ITF and FCDO (former DFID), would like to reiterate their commitment to fund bankable geothermal projects with respect to GRMF Financial scheme across East Africa region. We are confident that TMGO with this grant will take the project to the next stage closer to power generation.

The total grant amounts to USD 9,990,279 for co-financing the total cost estimated to USD 26.2 million for the exploration Drilling Programme.

 

The Tulu Moye Drilling Programme is located about 140 kilometers southeast of Addis Ababa in the Oromia Regional State, with Lake Koka to the north and Lake Ziway to the south. Three wells are being funded to explore the Gnaro lava field. The Drilling Programme is a continuation of a Surface Study, which received funding within the second GRMF application round.

Ethiopia’s geothermal energy capacity is estimated to be in excess of 10GW. Only a fraction of this has been developed and even less has attracted private investors, due to the complexities and risks associated with developing a geothermal field. Extensive exploration needs to be completed through the drilling of wells up to 2500km deep which is capital intensive and requires advanced technology. For the private sector, limited public funding is available during the early stages of developing a geothermal field, thus, the cost of the drilling campaign to validate the resource is primarily borne by the project sponsor. The rigorous grant application process validates the work of TMGO in developing the Tulu Moye geothermal field to date and the capital injection from the grant improves the commercial viability of the project for their project sponsors Meridiam & Reykjavik Geothermal. TMGO’s drilling campaign is now fully underway thanks to the support of GRMF and the Team looks forward to completing a successful exploration drilling campaign in Q1 2021.

– Darrell Boyd, CEO of TMGO

Currently, the sixth application round of the Geothermal Risk Mitigation Facility is in progress. Further information on this can be found here.

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