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Kenya’s Electricity Generating Company (KenGen) has completed drilling the deepest geothermal well in Ethiopia, reaching a depth of 3,000 meters, surpassing a target of 2,750 meters under contract for Aluto-Langano geothermal project for state-owned Ethiopia Electric Power (EEP).
“I must commend our teams on the ground for successfully delivering to expectations despite the threats of COVID-19 and security situation in Ethiopia at the time of project implementation,” said Rebecca Miano KenGen CEO.
“We are happy to see our teams deliver the same level of success in the Horn of Africa as we do back home in Olkaria where we have also drilled several geothermal wells to depths of 3,000 meters,” said acting Geothermal Development Director, Peketsa Mangi.
KenGen team is optimistic that the project which is part of the company’s diversification strategy once completed will help catalyze economic development in the horn of Africa through the provision of renewable energy while at the same time increasing access to electricity.
According to KenGen’s Finance and ICT Director, John Mudany, the NSE-listed firm has seen significant growth in its revenues attributed to income from the projects in Ethiopia.
“Our revenue increased by 4 per cent from Sh44 billion to about Sh46 billion in 2021 partly attributed to revenues from our diversification venture at Tulu Moye in Ethiopia,” Mudany said.
“The ongoing geothermal drilling services in Tulu Moye contributed about Sh1.7 billion compared to only Sh440 million in the last financial year.”
According to KenGen, Kenya is Africa’s number one geothermal energy producer and among the top 10 in the world, with an installed capacity of 863 megawatts, about 713 megawatts coming from KenGen.
Miano said KenGen has now embarked on drilling of the fifth geothermal well under the EEP project in Aluto-Langano and expects to complete the work in a fortnight’s time.
KenGen announced in November 2021 that it had started work to deliver three geothermal wells in Djibouti, setting in motion a 700 million shilling (6.05 billion U.S. dollar) contract.
Miano said the Ethiopian and Djibouti ventures are part of KenGen’s ambitious diversification strategy, in which the company seeks to acquire new revenue streams by offering commercial drilling services, geothermal consulting and other related services across Africa.
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