Nairobi, Kenya – June 8, 2023 – CFAO Kenya Limited, in partnership with Toyota Tsusho Corporation (TTC), is thrilled to announce the ground-breaking ceremony for the Menengai geothermal project, which took place on the 8th of June of 2023. As the selected EPC (Engineering, Procurement, and Construction) contractors for the project, we are proud to be part of this significant milestone in the development of the 35MW geothermal power plant. The project is a collaborative effort between CFAO Kenya Limited, Globeleq (our esteemed project Financier), and Geothermal Development Company (GDC).
The groundbreaking ceremony was graced by the presence of His Excellency Hon. Rigathi Gachagua, Deputy President of the Republic of Kenya, along with other distinguished guests, including Hon. Davis Chirchir, Cabinet Secretary of the Ministry of Energy & Petroleum, PS Energy, Mr. Alex Wachira, The Governor Nakuru County H.E. Governor, Susan Kihika alongside other high-level Government officials. Hosted by Paul Ngugi, CEO of GDC, the event was attended by Her Excellency Jane Marriott, British High Commissioner to Kenya, Mr. Kitagawa Yasuhisa the Deputy Chief of Mission Counsellor for Japan to Kenya, CFAO Vice President Mr. Tatsuya Hirata and Mike Scholey, CEO of Globeleq.
Globeleq is investing $108 million into the Menengai project, marking their entry into geothermal energy generation. The plant is poised to deliver clean, reliable, and cost-effective baseload power to the Kenyan national grid, harnessing the abundant steam resources available at the Menengai steam field. Subject to the fulfillment of remaining conditions precedent by the government, the project is expected to reach Financial Close within the next two to three weeks. Once the power plant commences commercial operations in 2025, Globeleq will assume responsibility for its operation and maintenance.
Menengai represents a transformative geothermal initiative and serves as the first phase of the broader Menengai complex, the second large-scale geothermal field under development in Kenya after Olkaria. GDC, under a 25-year project implementation and steam supply agreement, will be supplying steam to the Menengai project. The electricity generated will be sold to Kenya Power, the national distribution company, through a power purchase agreement for the same duration. Toyota Tsusho Corporation, a distinguished EPC contractor from Japan, will lend its expertise to ensure the successful implementation of the project. Additionally, Fuji Electric, renowned for its manufacturing excellence, will be responsible for manufacturing and supplying the steam turbine and generator, significantly contributing to the project’s overall success.
Through the Menengai geothermal project, CFAO Kenya Limited, alongside our esteemed partners, is actively driving sustainable development in Kenya’s energy sector. This endeavour not only highlights our commitment to providing clean and affordable energy solutions but also highlights our dedication to advancing the country’s energy independence goals. We firmly believe that the Menengai geothermal project will serve as a model for future ventures in the geothermal domain and pave the way for a greener and more prosperous Kenya.