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Kenya’s Treasury provides risk cover for Globeleq’s 35MW geothermal plant

By Green Building Africa - Net Carbon Zero Buildings and Cities July 5, 2023 No Comments

Menengai is the biggest volcanic crater in Kenya and one of the largest in the world. Image credit: Kenya Tourism

The Kenyan government in the form of its Treasury has provided risk cover to Globeleq for the 35MW geothermal power project currently under construction in the Menengai geothermal field.
The project has been led by Globeleq’s subsidiary Globeleq Geothermal Kenya Limited as a majority stakeholder in Quantum Power East Africa (QPEA).

Fuji Electric Co., Ltd. has been awarded a contract for a supply of geothermal power facility by Toyota Tsusho Corporation, which entered an EPC contract with QPEA. Read more

The letter of support granted to Globeleq offsets private investor and the investor’s lenders from certain elements of country and political risk. This helps a firm to secure funding and gives a major boost to the security of the project. The project is now set to reach full financial close.

“We see that the current government is unlocking the barriers that were there,” commented Geothermal Development Company (GDC) Managing Director Paul Ngugi.

Author: Bryan Groenendaal

Source: Nation

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Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.