Ratio Magazine :: The Inside Track to East Africa’s Economies - EAC Regional: Press Releases: Geothermal Testing in Rift Valley Yields Promising Results

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EAC Regional: Press Releases: Geothermal Testing in Rift Valley Yields Promising Results

Wednesday, 10 December 2008

9 December 2008 --- The United Nations Environment Programme (UNEP) and the Global Environment Facility (GEF) have announced the completion of project testing advanced seismic and drilling techniques in Kenya that has exceeded all expectations. Wells of steam, able to generate 4-5MW of electricity and one yielding a bumper amount of 8MW, have been hit using the new technology. It could mean a saving of as much as USD75m for the developer of a 70MW installation as well as reduced electricity costs for generators and consumers, experts estimate.

The results, announced at the UN climate convention conference in Poznan, Poland, have now paved the way for an international effort in 2009 to expand geothermal up and down the Rift which runs from Mozambique in the South to Djibouti in the north. The project, funded by the GEF and involving UNEP and the Kenyan power company KenGen, could also transform the prospects and costs for geothermal elsewhere in the world.

Achim Steiner, UN Under-Secretary General and UNEP Executive Director, said: "Combating climate change while simultaneously getting energy to the two billion people without access to it are among the central challenges of this generation. Geothermal is 100% indigenous, environmentally-friendly and a technology that has been under-utilised for too long".

"There are least 4,000MW of electricity ready for harvesting along the Rift. It is time to take this technology off the back burner in order to power livelihoods, fuel development and reduce dependence on polluting and unpredictable fossil fuels. From the place where human-kind too its first faltering steps is emerging one of the answers to its continued survival on this planet," he added.

Monique Barbut, Chief Executive Officer and Chairperson of the GEF, said: "Overcoming the economic and technical hurdles to renewable energy generation is part of our shared responsibility. The work in the Rift Valley is demonstrating that geothermal is not only technologically viable, but cost effective for countries in Africa where there an overall potential of at least 7,000MW".

"Indeed geothermal world-wide is undergoing a renaissance with the numbers of countries starting to use this power source estimated to rise from around 20 in 2000 to close to 50 by 2010. Africa's Rift Valley will I hope become a beacon for further geothermal acceleration in terms of the size and the number of power plants alongside its geographical spread across the developed and developing world".

The Project in Kenya

The GEF-funded project has, over the past three years used techniques known as micro seismic and magneto telluric surveys and studies for identifying promising new drilling sites at locations including Olkaria, Naivasha, which is around one hour's drive from the capital Nairobi. Here, a geothermal plant generating 45MW has been operating for a quarter century. A second plant was brought on stream in 2000 with a capacity of 70MW.

The main challenge to expansion in Kenya and elsewhere along the Rift has been the risk associated with drilling and the high costs if steam is missed.

The nearly USD1m Joint Geophysical Imaging project has aimed to overcome these risks. The old wells in Naivasha generate about 2MW whereas the new techniques have not only boosted the chances of hitting steam but have pinpointed wells of much higher potential, typically on average four to 5MW.

Rift Geothermal Expansion

Two years ago the GEF Council approved the Africa Rift Valley Geothermal Development Facility (ARGeo) backed with close to USD18m of funding and involving UNEP and the World Bank. The project, which will underwrite the risks of drilling in Djibouti, Eritrea, Ethiopia, Kenya, Uganda and Tanzania, is now set to commence in early 2009 and will be able to call on the equipment and techniques piloted by KenGen and UNEP. The ARGeo initiative has strong support from Iceland, one of the world's leading geothermal economies where well over 90% of its electricity comes from 'hot rock' and hydro, as well as Germany which is also developing this energy technology.

Separately Kenya and private investors are also seeking support funding from the Clean Development Mechanism (CDM) of the Kyoto Protocol for a further 35MW extension which is currently in the validation stage. Kenya's current electricity capacity is around 1,000MW. The country relies heavily on hydro-electric plants, generation systems that have in recent years suffered as a result of low rainfall and water supplies. The country has set itself a goal of generating 1,200MW from geothermal by 2015.

A contract has recently been awarded to a Chinese company to drill as part of the development of a new Olkaria IV plant. As a result of the UNEP-GEF Joint Geophysical Imaging project the number of wells likely to be needed to achieve 70MW could be 15 versus over 30 using the previous technology. This could save as much as USD5m for each well drilled. UNEP-GEF is currently in discussions with the Ministry of Water and Environment o the Yemen to explore for geothermal there in early 2009. More countries in the region with geothermal resources have also signalled their enthusiasm to participate in the geothermal expansion including the Comoro Islands, the Democratic Republic of the Congo and Rwanda.

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