KenGen Drills Ethiopia’s Deepest Geothermal Well

Kenya Electricity Generating Company PLC (KenGen) has completed drilling the deepest geothermal well in Ethiopia reaching a depth of 3,000 meters, surpassing a target of 2,750 meters.

This marks the second of eight geothermal wells KenGen has been contracted to drill for the state-owned electricity producer, Ethiopia Electric Power Company which was delivered successfully amid the COVID-19 pandemic.

“We are happy to see our teams deliver the same level of success in the Horn of Africa as we do back home in Olkaria where we have also drilled several geothermal wells to depths of 3,000 meters,” said Ag. Geothermal Development Director, Peketsa Mangi.

The KenGen team is optimistic that the project which is part of the company’s diversification strategy once completed will help catalyze economic development in the horn of Africa through the provision of renewable energy while at the same time increasing access to electricity.

According to KenGen’s Finance and ICT Director, Dr. John Mudany, the NSE-listed firm has seen significant growth in its revenues attributed to income from the projects in Ethiopia.

“Our revenue increased by 4% from Ksh.44 billion to about Ksh.46 billion in 2021 partly attributed to revenues from our diversification venture at Tulu Moye in Ethiopia,” said Dr. Mudany adding, “the ongoing geothermal drilling services in Tulu Moye contributed about Ksh.1.7 billion compared to only Ksh.440 million in the last financial year.”

In February 2019, KenGen won a contract to offer geothermal drilling services for EEP in the Aluto-Langano geothermal fields in Ethiopia.

At the same time, also in the Horn of Africa, under a contract signed in October 2019, KenGen has completed drilling two geothermal wells for Tulu Moye Geothermal Operations PLC (TMGO) in Ethiopia and is currently drilling the third well.

These two projects are hinged on the Company’s diversification strategy which has led to the organization’s expansion in the Horn of Africa. Besides Ethiopia, KenGen has also secured a Ksh.709 million project to offer commercial drilling services in Djibouti.

In February this year, the company signed a contract with Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG). KenGen is also prospecting for similar partnerships locally and in other countries in the region.

The Federal Democratic Republic of Ethiopia has declared a six-month state of emergency in the Horn of African country but the situation on the ground is calm and KenGen hopes normalcy will resume soon.

“We are assessing the full extent of this latest security situation and working with both the Kenyan and Ethiopian Foreign Affairs and Security authorities for purposes of monitoring the situation to ensure the continual safety of our people,” said Dr. Mudany.

KenGen is optimistic that the unfolding situation will be resolved speedily through peaceful means.