Globeleq secures debt for 35-MW geothermal project in Kenya

Africa-focused independent power producer (IPP) Globeleq said today it has struck financing deals totalling USD 72 million (EUR 67.7m) to support a 35-MW geothermal project in Kenya’s Nakuru County.

The fresh capital is earmarked for the Menengai geothermal project, estimated to require some USD 108 million in investments. The debt will be provided by the African Development Bank (AfDB), Finnfund and the Eastern and Southern African Trade & Development Bank (TDB).

Globeleq will install the geothermal plant as part of the first phase of the wider Menengai complex, planning to begin construction in the first quarter of next year. Commercial operations are expected to be launched in 2025, with the electricity output to be sold to national power distributor Kenya Power.

Steam for the plant will come from government-owned Geothermal Development Company (GDC) under a 25-year project implementation and steam supply agreement.

Globeleq is 70%-owned by British International Investment, while the remaining 30% stake is held by Norfund. The company has installed over 1.5 GW of power capacity since its launch in 2002 and now has 722 MW under construction.

(USD 1.0 = EUR 0.941)

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