OPIC approves $310 million for geothermal project in Kenya

• 13 years ago (2011-09-23)
• David Flin

North America 1021 Renewables 776

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The Board of Directors of the Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has approved up to $310 million in financing for a project to increase the capacity of the Olkaria geothermal power plant in Kenya from 48 MW to 100 MW.

The project is intended to support the Kenyan government’s effort to develop the country’s extensive geothermal resources in order to reduce reliance on hydropower and provide low-cost base load energy.

OrPower 4, a subsidiary of Ormat Technologies, based in Nevada, USA, will use the OPIC loan to add 52 MW to the existing 48 MW Olkaria geothermal plant in Kenya’s Rift Valley, approximately 75 km northwest of Nairobi. The expansion will involve modifications to components of the existing plant, additions to Olkaria’s steam gathering and injection system, and development of the geothermal reservoir to support the expansion.

Ormat will use its own proprietary binary cycle technology involving Organic Rankine cycle air-cooled turbines run on the heat energy from geothermal fluid extracted from geothermal reserves. Impact on the environment will be minimised by re-injecting cooled water into the reservoir.