Power producer Kenya Electricity Generating Company #ticker:KEGN (KenGen) has completed drilling of a 3,000 meters geothermal well in Ethiopia, its longest well yet in the neighbouring nation, having surpassed its inaugural well of 2,750 meters.
The firm says the project is second out of eight wells it was contracted to drill by the state-owned electricity producer, Ethiopia Electric Power Company.
Ethiopia is eyeing renewable energy sources to increase electricity capacity to meet rising power demand from commercial and household customers.
“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,” Geothermal Development Director Peketsa Mangi said.
In February 2019, KenGen won a contract to offer geothermal drilling services for EEP in the Aluto-Langano geothermal fields in Ethiopia.
“Our revenue increased by 4 percent from Sh44 billion to about Sh46 billion in 2021 partly attributed to revenues from our diversification venture at Tulu Moye in Ethiopia," KenGen’s Finance and ICT Director John Mudany said
“The ongoing geothermal drilling services in Tulu Moye contributed about Sh1.7 billion compared to only Sh440 million in the last financial year.”