Following the confirmation of geothermal resources, Centum Investment Company is seeking strategic investors to fund cash for the multimillion shilling 70-megawatt (MW) project in the Akiira Valley of Olkaria, Naivasha.
After the two wells it sunk in Naivasha at a cost of Sh1.2 billion failed to achieve production capacity, Centum’s renewable energy firm Akiira Geothermal resorted to KenGen for assistance in its steam generating quest in 2020.
“The geoscientific studies conducted by KenGen showed that the Akiira field has good prospects for producing the planned 70 MW of output for the first phase of the project. Akiira is currently in discussions with potential strategic and financing partners to enable it to complete the geothermal exploration phase necessary to reach financial close with lenders and then draw down on debt funding to complete the project,” said Fred Murimi, the managing director for Centum Capital in response to the Business Daily queries.
The exploration drilling phase should take about 12 to 18 months, added Mr Murimi.
The Akiira Valley in Naivasha is the location of the power project. The company is counting on investor involvement and planned drilling to jump-start construction of the power plant, which is expected to cost €310 million (Sh39 billion).
Although the drilling for the first two wells began in 2015, there was not enough steam to sustain electricity generation that could be linked to the national grid.
Centum owns a 37.5 percent equity stake in the Akiira consortium, with the remaining 62.5 percent owned by American firms Ram Energy, Marine Power, and Danish company Frontier Markets.
Akiira had signed a power purchase agreement with Kenya Power #ticker:KPLC in August 2015.
Centum said earlier the firm would begin fresh negotiations with the European Investment Bank after it pulled the plug on a Sh19.5 billion loan over the project’s viability and environmental concerns.
