[ACCI-CAVIE] Toyota Tsusho Corporation (“Toyota Tsusho”), together with Group company CFAO Kenya Limited (“CFAO Kenya”), announced the conclusion of a contract on February 8, 2023, with QPEA GT Menengai Ltd, a wholly-owned subsidiary of Globeleq, UK-based leading private power company in Africa, for the construction of a 35 MW geothermal power plant (“the Project”) in Menengai, Nakuru, Kenya. Construction work is scheduled to be completed in 2025.
Kenya is one of the leading clean energy countries in Africa, with renewable energy providing approximately 90% of the country’s total electricity generation. Located in the Great Rift Valley, Kenya is rich with geothermal resources, with more than 40% of the country’s total electricity generation coming from geothermal power. The government of Kenya is promoting the further expansion of geothermal power generation as a baseload power source that can stably generate electricity at any time of day. This Project is the geothermal power plant to be constructed in the Menengai region, a new prospective field for geothermal energy following the Olkaria region. It will generate stable, renewable and affordable baseload power, improve the lives of the people of Kenya, and contribute to sustainable economic development in the region.
2. The Project
Toyota Tsusho has been involved in expanding geothermal power generation in Africa, including the completion of the Olkaria geothermal power plant, the largest power producer in Kenya, in 2015. It also concluded a contract for the construction of the Aluto Langano Wellhead Geothermal Power Plant in Ethiopia in 2020.
Globeleq is a power business development and operation company that is 70% owned by British International Investment and 30% owned by Norfund, the UK and Norway governments’ development finance institutions respectively. It owns and operates power plants with an installed capacity of more than 1,500 MW in six African countries and is promoting the development of renewable energy such as geothermal, solar, and wind power.
Toyota Tsusho will be the EPC contractor for the Project, and Fuji Electric Co., Ltd. will manufacture and supply the main equipment, including the geothermal steam turbines and generator. Financing agreements for the Project were signed with the African Development Bank (AfDB), Finnfund and the Eastern and Southern African Trade and Development Bank (TDB) on 14th December 2022.
The Toyota Tsusho Group has established targets for reducing greenhouse gas (GHG) emissions by 50% below 2019 levels by 2030 and to achieve carbon neutrality by 2050. It is working to expand the use of various renewable energy sources around the world, including wind, solar, and geothermal power generation. Toyota Tsusho Group contributes to a realization of a decarbonized society while also contributing to green economic growth in Africa through the creation and utilization of new clean energy sources, to pass on a better global environment to the children of the future.
By MS and LB