Globeleq hires Toyota Tsusho to build 35-MW geothermal plant in Kenya

Africa-focused independent power producer (IPP) Globeleq has contracted Toyota Tsusho Corporation (TYO:8015) to handle the construction of a 35-MW geothermal power plant in Kenya.

Globeleq, owned 70% by British International Investment and 30% by Norfund, has chosen Toyota Tsusho to be the engineering, procurement and construction (EPC) contractor for the USD-108-million (EUR 100.7m) Menengai project in Nakuru County. In addition, it has awarded the Japanese trading company a long-term service agreement.

Menengai, which will be Globeleq’s first geothermal energy plant, represents the first phase of a larger project involving the second large-scale geothermal field being developed in Kenya after Olkaria. It will source steam from state-owned Geothermal Development Company (GDC) under a 25-year project implementation and steam supply deal, and will sell its generated electricity to national distribution company Kenya Power.

Globeleq obtained financing totalling USD 72 million for the 35-MW project in December. It plans to complete the plant in 2025.

(USD 1.0 = EUR 0.932)

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