Reykjavik Geothermal (RG) is pleased to announce the signing of final project documentation for the two landmark geothermal power projects in Ethiopia, Tulu Moye and Corbetti.
At a joint signing ceremony in Addis Ababa today, Tulu Moye Geothermal signed a 520 MW Power Purchase Agreement and Implementation Agreement (PPA/IA) with Ethiopian Electric Power (EEP) and the Government of Ethiopia (GoE) for the Tulu Moye area (see enclosed press release), while at the same time Corbetti Geothermal signed a similar 520 MW PPA and IA with EEP and the GoE for the Corbetti area (see enclosed press release). The projects will be developed in phases, and each has a total budgeted cost of approximately USD $2.2 Billion. When fully developed, each project individually would be the largest independent power project (IPP) investment in Africa.
Corbetti and Tulu Moye each represent half of the framework agreement signed by RG and Ethiopian Electric Power Corporation (EEP’s predecessor) in 2013 for the development of 1,000 MW of base load power for the grid from geothermal sources. The RG team has been working on developing geothermal resources in Ethiopia for over seven years, establishing the first regional office in Ethiopia 2011, and the company’s close cooperation with EEP, GoE and Rift Valley Geothermal has enabled us to bring high-quality investors alongside RG into each of the two projects. The investors include Meridiam SAS on the Tulu Moye side, and the African Renewable Energy Fund, InfraCo and Iceland Drilling for Corbetti.
The signing will bring both projects to the drilling stage and commit the two projects to a total of $150 million in initial equity investment, setting the stage for large-scale private sector debt and equity investment in Ethiopia’s world-class geothermal resources. Reykjavik Geothermal is committed to working with the Government of Ethiopia and EEP to build a world class geothermal industry in Ethiopia.
For details, please see enclosed press releases from Corbetti Geothermal and TM Geothermal Operations.
About Reykjavik Geothermal
Reykjavik Geothermal was founded in 2008 by one of the world’s most experienced geothermal management and science teams. In addition to developing the Corbetti and Tulu Moye projects, RG has multiple ongoing projects in Mexico, as well as in St. Vincent in the Caribbean. RG’s next steps in Ethiopia will be to develop the Abaya resource, where preliminary results point to a new 500 MW opportunity. As one of the world’s premier geothermal development teams, RG has the experience to unlock the vast commercial potential of geothermal energy around the world and is committed to the sustainable generation of near zero-emission baseload power.
Further information
Magnus Asbjornsson: ET +251 943794110, US +1 (917) 4991666, email magnus@rg.is
Gudmundur Thoroddsson: Tel +354 6182060, email gudmundur@rg.is
