- Independent Power Producer (IPP) Globeleq has secured a $72 million loan for its investments in Kenya.
- The funding from several financial institutions is for constructing the Menengai geothermal power plant in the Rift Valley, western Kenya.
Globeleq secured $72 million in funding for Kenya’s Menengai geothermal project. The African Development Bank (AfDB), the Trade and Development Bank of Eastern and Southern Africa (TDB), and a Finnish investor, Finnfund, contribute the funds.
The Menengai geothermal project is mov[aing closer to the close financial thanks to recent funding agreements made by independent power producer (IPP) Globeleq. The London, UK-based corporation is also anticipated to raise its cash to bring the project’s finances to a successful conclusion. An investment of $108 million will be needed for the Menengai plant’s construction.
The financial arm of British diplomacy, British International Investment, owns 70% of Globeleq, which is building the Menengai geothermal project, while the Norwegian Investment Fund holds 30% of it for Developing Countries (NORFUND). The British government promised to invest more than $4 billion in Kenya on the fringes of COP27 in November 2022 in Egypt, including $103 million for the Menengai geothermal project.
A 35 MWe power plant powered by steam produced by the earth’s inherent heat will be constructed as part of the Menengai geothermal project. The state-owned Geothermal Development Company (GDC) of Kenya and Globeleq have partnered to carry out the Menengai geothermal project. According to the terms of their contract, Globeleq will buy geothermal steam from GDC over 25 years.