Globeleq appoints Toyota Tsusho Corporation as the EPC contractor for the Menengai Geothermal Project in Kenya
NAIROBI / LONDON – 9 February 2023: Globeleq, the leading private power company in Africa, has executed an engineering, procurement and construction (EPC) contract and a long-term service agreement (LTSA) with Toyota Tsusho Corporation (TTC) for the 35MW Menengai geothermal project in Nakuru County, Kenya. Mike Scholey, CEO of Globeleq and, Kazumasa Kimura, COO for Africa Division of TTC signed the agreement in Tokyo earlier today.
Globeleq’s $108 million Menengai project will be the company’s first geothermal plant and the signing of these agreements is a major milestone for the project after financing agreements were signed in December 2022 with the African Development Bank, the Eastern and Southern African Trade & Development Bank and Finnfund.
During COP27, President Ruto of Kenya and Prime Minister Sunak of the UK jointly committed to fast-track green investment projects worth KES500 billion in the country, which included the Menengai project. The project will deliver clean, reliable and affordable baseload power to the national grid and also benefits from a Letter of Support issued by the Government of Kenya. Construction of the project is expected to commence during the first quarter of 2023 once financial close has been reached. Globeleq will operate and maintain the power plant once it reaches commercial operations in 2025. The steam turbine and generator will be manufactured by Fuji Electric.
Mike Scholey, Globeleq’s CEO said: “We are very excited to partner with TTC, which has an established presence in Africa and a proven track record in Kenya’s geothermal sector. Menengai will be Globeleq’s first geothermal plant and will contribute to reducing the cost of power in the country. Having signed these key project agreements with TTC after achieving a fully committed financing about a month ago, we will now work with the Government of Kenya to reach Financial Close and start construction as soon as possible.”
Richard Bielle, CEO for Africa Division of TTC and President of CFAO said: “We are very pleased to partner with Globeleq as their chosen EPC contractor for the Menengai geothermal project. TTC has been involved in Kenya since 1962 and, through our fully owned subsidiary, CFAO, we have a strong footprint in Renewable Power Development, and Mobility, Healthcare, Consumer and Infrastructure sectors. With our rich experience in the geothermal sector and our local communication network in Kenya, we, together with Globeleq, are excited to contribute to this project toward stable and affordable supply of electricity in Kenya.”
Menengai is a greenfield geothermal project and part of the first phase of the wider Menengai complex, which is the second large-scale geothermal field being developed in Kenya after Olkaria. Steam will be supplied to the project by Geothermal Development Company (GDC), a Kenya government-owned company under a 25-year project implementation and steam supply agreement.
Once operational, electricity will be sold to Kenya Power, the national distribution company, under a power purchase agreement for the same timeframe. The project will deliver clean and cheap baseload power to the national grid and enable GDC to monetise the available steam resources from the Menengai steam field.
Project Enquiries: Edouard.wenseleers@globeleq.com; Director, Business Development – Head of East Africa.
Media Enquiries: media@globeleq.com; – George Cazenove, Fiona Gonyea
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About Globeleq
Globeleq, which is owned 70% by British International Investment and 30% by Norfund, is the leading developer, owner and operator of electricity generation in Africa. Since 2002, its experienced team of professionals have built a diverse portfolio of independent power plants, generating more than 1,500MW in 14 locations across 6 countries, with a further 722 MW in construction and more than 2,000 MW of power projects in development. More details on www.globeleq.com.
About Toyota Tsusho Corporation (TTC)
TTC was founded in 1948 as the trading company for the Toyota Group. Today, TTC, with approximately 65,000 group employees in about 130 countries, strives to contribute to the creation of prosperous societies. Nowadays, TTC has set the goal of reducing GHG emissions by 50% below 2019 levels by 2030 and achieving carbon neutral by 2050. In addition, TTC Group has announced that TTC will invest JPY 1.6 trillion by 2030 in five areas of focus, including renewable energy and energy management, which is one of the Group’s strengths.
In Africa, TTC Group is also actively promoting the development of power and infrastructure projects to expand the use of renewable energies such as geothermal, solar and wind power, while at the same time promoting the use of renewable energy for power consumption, including the sequential installation of solar power systems at the Group’s sites in various countries.