Ethiopian Electric Power (EEP), Ethiopia’s state-owned utility firm, signed an agreement with two Chinese firms and one Kenyan firm for the 70 MW geothermal energy drilling project.

The firms with which EEP signed the agreement are Shandong Kerui Oilfield Service Group, Shandong Kerui Oilfield Service Group Co. Ltd., and Kenya Electricity Generating Company.

EEP said in a statement that the three firms are expected to supply drilling materials as well as drill wells for possible geothermal energy sources in central Ethiopia. EEP further stated the agreement will see the drilling initially of 22 wells to probe their geothermal energy generation potential.

The Aluto-Langano geothermal project is seen as a key part of the government's plans to generate up to 5,000 MW of geothermal energy in the coming few years. Currently, Ethiopia produces only 7.3 MW of geothermal energy.

EEP disclosed that this geothermal energy project costs up to $173.2 million.

Geothermal energy is considered a reliable renewable energy sources although it involves a greater start-up cost. Ethiopia has the longest section of the 7,000-km East African Rift Valley, which boasts an estimated geothermal potential of 10,000 megawatts, whilst only starting to tap into the up-to-now-untapped potential, comparing meagerly to neighboring Kenya's installed geothermal power capacity of about 630 MW.

Sources: Xinhua, All Africa