Akiira Geothermal Ltd (Akiira) today signed a grant contract with the African Union Commission (AUC) of US$1.37 million to fund exploratory drilling works it is currently undertaking in Akiira Ranch, south of Ol Karia geothermal fields, Naivasha sub-County of Nakuru in Kenya. Akiira commenced exploratory drilling in August 2015 and is today about to kick off on drilling its third geothermal well.
The grant award by the AUC is part of its Geothermal Risk Mitigation Facility that is aimed at mitigating financial risks that early stage private sector developers bear when drilling in the search of geothermal steam suitable for power production. This facility is part of the AUC’s commitment to support Africa’s infrastructure investment objectives.
Akiira in August 2015 signed a Power Purchase Agreement with Kenya Power and Lighting Co Ltd to supply base load power from a 70MW power plant that it will construct once exploratory drilling has been completed. With this funding from the AUC Akiira will embark on its second stage exploratory drilling works with an aim of finding at least 77MW of steam energy sufficient to drive the power plant for 25 years.
Akiira’s equity sponsors are, Frontier Investment Management a Danish renewable energy Private Equity fund manager and Centum Investment a Nairobi Securities Exchange listed investment company. While the developer companies are Marine Power Generation of Kenya and RAM Energy of the United States. The four parties form the shareholder group of Akiira Geothermal Ltd.