Japan’s Prime Minister, Shinzo Abe, announced that East Asia is committed to fund geothermal power projects across Africa during a conference in Kenya, Nairobi.
Having identified Kenya and Ethiopia as the primary target regions, Africa has only developed 5% of this clean power fuel, which according to the Nikkei Asian Review is due to the high associated costs of drilling down to heat reservoirs and building the plants themselves.
Those Japanese players with a vested interest in the sector are seeking to boost the existing 600,000kW of geothermal capacity to more than 1 million kilowatts in the east African region.
For the initial phase, the Japanese government has earmarked over $9.97 million for grant provision as part of a supplementary budget for the current fiscal year, media reported.
The total grants will cover a portion of preconstruction-stage costs, which can run to $100 million. Predominant market players globally include Japanese groups Toshiba, Mitsubishi Hitachi Power Systems and Fuji Electric.