Reykjavik Geothermal Limited,(RG) a global player focused on the development of geothermal resources for utility scale power production, is about to launch a $4.4 billion project to bring volcanic energy to Ethiopia. The project is backed by hedge fund American billionaire Paul Tudor Jones II. RG was founded in Iceland in 2008 by a team of experts experienced in geothermal sector. It specialises in identifying locations where quality geothermal resources that can be efficiently harnessed to meet the local demand for power and clean energy. The company has projects in over 30 countries covering all phases from greenfield to commissioning. RG has been instrumental in implementing world’s largest combined heating and power geothermal plant in Hellisheidi, Iceland.Riding on its vast expertise in channeling volcanic power, the company is poised to start exploration drilling in Ethiopia in September. The project will include two 500-megawatt plants in Corbetti and Tulu Moye, south of the capital Addis Ababa.
According to RG, upon completion, each project would become the largest independent power producer in Africa and expected to support Ethiopia’s drive to become a middle-income country by 2025. The first phase will develop 50 to 60 megawatts,with an equity investment of $175 million for each. The total cost of the projects is about $2.2 billion apiece, with 75% anticipated to be financed via debt. Apart from RG, the other stake holders include Africa Renewable Energy Fund, Iceland Drilling Co. and Meridiam SAS. Drilling contracts with the government, are also under negotiation.
