The African Union Commission (AUC) and Reykjavik Geothermal concluded an agreement last week for a financial support to drill two-reservoir confirmation wells at the Reykjavík Geothermal project in Ethiopia.

The financial support is U.S$ 5.6 Million and the wells are owned by Corbetti geothermal prospect. With regard to the support, it is aimed at alleviating infrastructure requirements need for proper project implementation. The signing ceremony took place at the Grand Hotel in Reykjavik, Iceland on May 26, 2014.

The signing took place during a Donors’ Coordination meeting held by AUC for mobilizing fund and technical support for Regional Geothermal Programme as well as the Geothermal Risk Mitigation Facility (GRMF).

It was AUC along with the German Federal Ministry for Economic Cooperation and Development and the EU-Africa Infrastructure Trust Fund in cooperation with KfW, a German government-owned development bank that established the GRMF.

The Facility had encouraging public and private investors to develop geothermal prospects for power generation in Eastern Africa as its objective. It intends to reach its aim through providing cost-sharing grants for surface studies and drilling of reservoir confirmation wells.

Commenting on the agreement Tewodros Gebregziabher, Minister of State of Mines, said We are very happy with Reykjavik Geothermal for the signing of a project which will be of great benefit to the people of Ethiopia”.

The AUC Commissioner for Infrastructure and Energy, Elham M. A. Ibrahim (Ph.D.), on her part passed her gratitude to achievement in geothermal development and this will in turn improve the quality of life of the people of Ethiopia.

Additional 20 Megawatt will be contributed to the Ethiopian Power Grid by the end of 2015 for the end of the year marks a completion of a pilot project which will generate 300 Megawatt. 

Source: The Reporter