Milestone achieved by Kaishan in its exploration of overseas geothermal power generation markets

2017/10/25


On October 23rd, Zhejiang Kaishan Compressor Co., Ltd. received SUSWA SOUTH-MAGADI-SHOMPOLE Area Geothermal Resource License geothermal resource license NO.4/2017 issued by Kenya Energy & Petroleum Ministry. This license gives Kaishan the rights and concession to explore and develop geothermal project in SUSWA SOUTH-MAGADI-SHOMPOLE area (hereafter referred to as “Magadi geothermal project”). Kaishan’s path of overseas geothermal development begins in Marapi Indnesia, travels throught Nevada United States and Tura Hungary, and currently reaches Magadi Kenya. The grant of exploration and development license by Kenya government means that Kaishan has already acquired a total of 1000 MW geothermal resources that can be developped. We believe this amount of ownership of geothermal resources occupies one of the top places.

Crossed by East Africa Great Rift Valley, Kenya is one of the countries richest in geothermal resources. Kenya has an estimated total geothermal reserve of 10000 MW and a clear reserve of 3000 MW known through exploration. Currently only 500MW in Olkaria has been utilized, which means that the potential for geothermal development and utilization in Kenya is quite great.

Kenya has a population of 40 million, with only over 2 million kilo watts installed power capacity nationwide. The gap between power supply and demand is huge, and Kenya has to import electricity. In order to solve the gap, the Kenya government encourages investers to invest in power industry, especially investment in clean energies such as geothermal energy. In conclusion, geothermal development is a very important part of Kenya power development plan.

Magadi geothermal project is located 106 kilometers to the southwest of Nairobi, less than 100 kilometers from Olkaria national park which is currently the biggest geotthermal development area in Kenya. The concession area is 3543km2, mainly within Kajiaodo county. The project location is a flat area with good living and traffic facilities, which is favorable for geothermal project development.

(Note: the area between coordinate points A, B, C, D and E is 4175 km2, and does not include the 632 km2 between coordinate points F, G, I and H. The concession area is 3543 km2)

Magadi project is currently an undevelopped virgin geothermal area having an estimated geothermal resource of 800MW known through some explorations done by some related Kenya departments. Based on the geothermal resource license NO.4/2017 issued by Kenya Energy & Petroleum Ministry to Kaishan, phase one development target has been planned at 300MW or at a maximum capacity based on economic feasibility.  

The company has already formed a geothermal exploration and due diligence team composed of geologists from United States, China and Kenya. The company has also started preparing a geothermal project development platform company for east Africa projects to be established in Singapore and is making development plans. The purpose of the establishment and planning is to move forward on various work of Magadi project development.   

The successful implementation and development of Magadi project will have far-reaching effects on Kaishan’s strategic goal of transforming into a geothermal energy operator and supplier of geothermal energy equipment.