Kenya:

Akiira I Geothermal Project to Start Drilling (Business Green)

Insurance coverage from Germany-based Munich Re provides opportunity for developers to begin exploratory drilling

The 70 MW Akiira I project developed by Akiira Geothermal Limited (AGL), will soon start drilling after the company received insurance coverage for the exploratory phase of the initiative from Germany-based insurer Munich Re.

The initial stages of geothermal exploration can be the most risky, with costly investment sometimes being lost when drilled areas do not produce enough steam or heat, causing projects to be discontinued. However, the "multi-well exploration risk insurance" offered by Munich Re is designed to mitigate some of the risk associated with the projects' early stage, allowing drilling to get underway.

Hezy Ram, chief executive of Ram Energy, one of the founding shareholders of AGL, said the new project could prove strategically significant for the country. "Geothermal heat offers an immense reservoir of base load energy," he said. "Akiira will be a pilot project for us, so that other projects can follow."

Akiira One is jointly owned by Centum and Frontier Investment Management, a Danish investment firm. Ram Energy, Inc. and Marine Power will construct the power plant.

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