STATUS OF GEOTHERMAL DEVELOPMENT IN KENYA. Dr. Peter Omenda

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1 STATUS OF GEOTHERMAL DEVELOPMENT IN KENYA Dr. Peter Omenda

2 The Kenya Rift >14 high temperature prospects identified in the Kenya rift >6 Med and low temp prospect Estimated power potential is >7,000 MWe

3 History of Geothermal Development in Kenya Exploration wells drilled in (UNDP). Drilling re-started in 1970 (UNDP) Exploration drilling was re-started in 1973 (World Bank) More wells drilled between (GoK and World Bank)

4 Olkaria I Power Station 45MW (3X15MW units ) Construction of the power plant funded by World Bank, IBRD, EIB, CDC and GoK

5 Field Performance Eight make-up wells drilled in 1988/89 funded by the World Bank Make-up wells connected between 1995 and 2000 (KenGen): Estimated drawdown 4% but actual was 2% but now stabilized (0%) Success due to prudent field management and re-injection strategy

6 OLKARIA I Life Extension Has lived its full design life -25 yrs Performance very good Feasibility to extend life finalized (World Bank)

7 Olkaria 1, Unit IV (140MW) Further studies revealed high potential in west sector of Olkaria I Production drilling in progress (GoK and executed by GDC) To be commissioned 2012/3

8 Olkaria II: Feasibility Study Feasibility study was funded by World Bank Drilling of 33 wells (production, Reinjection & Monitoring) completed by 1993 (World Bank/IDA).

9 Olkaria II Power Station 70MW (2X35MW units commissioned in 2003) Construction of the power plant was funded by World Bank, EIB, KfW and KenGen

10 Olkaria II 3 rd Unit 35MW (To be commissioned in 2010) Construction is in progress and is funded by IDA, EIB and KenGen

11 Olkaria III (55MW) Power Plant (Commissioned 2009) Developed and funded by Orpower4 Inc. (Ormat) Plans to add 50MW at advanced stage

12 Oserian Power Plants (2X2MW) Generates power using steam from two geothermal wells leased from KenGen Developed and financed by Oserian Development Company (ODCL)

13 Oserian Green house project i) Cut Roses Green house Heating ~100 hectares ii) Developed and financed by Oserian Development Company Ltd (ODCL)

14 Eburru geothermal field Explored between exploration wells drilled using IDA funds Estimated resource 20-40MWe 2.5 MWe pilot plant to be installed by KenGen in 2011 (KenGen funded)

15 Olkaria IV (Olkaria Domes) Appraisal drilling commenced in 2007 (GoK) Production drilling is ongoing (Funded by GoK, China Exim Bank, KfW and executed by GDC) Targeted for 140MW power station by 2012/3 funded by KenGen, World Bank, JICA, KfW, EIB, AfD.

16 Summary of Existing and planned Project Geothermal capacity expansion Existing (MW) Planned (MW) Total Operator Olkaria I KenGen Olkaria II KenGen Olkaria III Orpower4 Olkaria IV KenGen Oserian 4-4 ODCL Total

17 Menengai Prospect Prospect has potential in excess of 800MWe Exploration drilling to commence in Sept 2010 (GDC)

18 Longonot Has a potential of more than 700MWe Licensed to AGIL Exploratory drilling to commence in 2010 (AGIL) Longonot crater

19 Suswa Licensed to WalAm Inc. Potential is more than 600MW Exploratory drilling to commence in 2011 (WalAM Inc.) Island block Outer caldera Inner caldera

20 Other Prospects All other fields listed below will be developed by GDC: - Menengai - Korosi, - Paka, - Silali, - Barrier, - Emuruangogolak, - Namarunu, - Arus-Bogoria - L. Magadi - Homa Hills - Mukwe

21 STEAM FIELD DEVELOPMENT PLANS 4000 MWe Purchase 12 Rigs 20 year Drill 1200 wells US$ 5 billion(kes 400 billion)

22 SUPPORT PROGRAMS Geothermal Support programs UNU-GTP Training UNEP IAEA Project GEOTHERM II AfD - Capacity development French Govt. Type of assistance UNU-GTP Training Joint geophysical imaging for geothermal exploration (Completed) Isotope Hydrology for Exploration and Management of Geothermal Resources in the African Rift System Coordination not clear Thermal mapping of the northern Kenya rift - Application prepared 6 million for training and capacity building purchase of 2 rigs ( 50 million) Olkaria I and IV power plants 150million 1 drilling rig

23 Support Programs continued Training KfW Olkaria I and IV power plant development EIB - Olkaria I and IV power plant development World Bank: Olkaria I and IV power plant development JICA - Olkaria I and IV power plant development China EximBank UNU-GTP Training 150million for plant construction 11 million for production drilling 11 million for drilling services Olk IV 200million US$100million US$200million -US$97 Million for 130 wells materials -US$89.6 million for purchase of 3 rigs - US$95 million for drilling of 26 wells at Olkaria I and IV

24 CHALLENGES Financing of geothermal projects Inadequate skilled human capacity Inadequate equipment for resource assessment Management of drilling operations Availability of spares and support services

25 REQUIRED FINANCIAL SUPPORT Acquisition of additional drilling rigs, drilling materials, laboratory and workshop equipment Establishment of Geothermal Training Centre Training in geothermal technology, regulation, planning and power plant engineering In-house capacity development in drilling operations, exploration and resource management Risk mitigation fund for dry wells sunk