The joint venture agreement between KenGen and Akiira Geothermal marks the first time KenGen has entered into an agreement with an independent power producer for geothermal development.
KenGen has entered into an agreement with Akiira Geothermal Ltd (AGL) for the joint development of the Akiira geothermal field in Kenya. An ad hoc vehicle will be created after the agreement with the two companies holding an equity stake. This is the first agreement KenGen has signed with an Independent Power Producer (IPP).
The Akiira Geothermal consortium includes the American companies Marine Power Generation and Ram Energy, the Danish fund DI Frontier Market Energy & Carbon Fund K/S (Fund 1) – as co-developer and main partner – and the local company Centum Investment.
The basis of the agreement was created in 2020 when AGL sought the expertise of KenGen to carry out a geoscientific study in the area following the drilling of two low productivity wells. Incidentally, the Akiira geothermal field is located near the highly productive Olkaria geothermal project operated by KenGen.
“The agreement involves the entire development and investment cycles of the project, from exploration to the development of wells and the construction of power plants in the Akiira concession area,” said Cyrus Karingithi, KenGen’s Acting Director of Resource and Infrastructure Development. He also said that the dry wells at Akiira should be converted into reinjection wells.
Karingithi also disclosed that KenGen had received another joint venture proposal from another IPP – African Geothermal International Ltd (AGIL). AGIL is currently developing the Mount Longonot geothermal project but has faced persistent delays due to land rights issues and resistance from local communities. AGIL’s proposal is still under consideration, according to Karingithi.