Toshiba unveils geothermal alliance in Tanzania

Japanese conglomerate Toshiba Corp (TYO:6502) said Tuesday it will work on geothermal energy schemes in Tanzania in partnership with domestic sector player Tanzania Geothermal Development Co Ltd (TGDC).

Under the terms of a newly-signed memorandum of understanding (MoU), the two companies will bring together their expertise in different geothermal areas, as well as in the field of human resource development. While TGDC’s business scope ranges from resource development to power plant construction, Toshiba will supply major equipment, create guidelines for operation and management (O&M) and train personnel.

Tanzania is estimated to have the third biggest geothermal potential in Africa after Kenya and Ethiopia -- more than 5,000 MW, according to the statement. Tanzania Electric Supply Co unit TGDC holds the exclusive geothermal exploitation rights in the country and the current deal is its first one with a firm from Japan.

To date, Toshiba has delivered 52 geothermal turbines with a combined capacity of about 3,400 MW worldwide, equal to a 26% market share. In mid-October, it teamed up with US sector player Ormat Technologies Inc (NYSE:ORA) to jointly capture an even bigger share of the geothermal market.

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