Americans behind region’s biggest power project in Kenya

May 23, 2018 in Companies, Energy, Infrastructure, Investment by Editor

May 23, 2018—American money and technology is playing a major role in the proposed $2 billion 1050 MW Lamu Coal Power Plant with Amu Power being the special purpose company created to run the plant in east and central Africa’s biggest public private partnership project in recent years. Lamu lies along Kenya’s northern coastline.

Francis Njogu, Amu Power Managing Director said, “This is truly a historic moment for Kenya and the East African region as a whole. We are confident that this partnership forged today will go a long way to position Kenya as an Industrial hub in the continent. Kenya has been looking for ways to enhance its generation mix to provide the most efficient, least-cost and reliable power in a sustainable manner; and the technology offered by GE gives us a unique opportunity to achieve this ambition.”

The agreement will also see GE through its affiliates acquire a $500 million stake in the equity of Amu Power, subject to obtaining regulatory, board and lenders’ approval. Under the Agreement, GE Power will design, manufacture and deliver its market-leading Ultra Super-Critical clean coal technology components (boiler and steam turbine generator) and air quality controls systems for the Lamu Coal Power Plant.

In a briefing to President Uhuru Kenyatta last week at State House Nairobi, the parties told him GE’s Ultra-Supercritical technology will guarantee a clean environment through elimination of emissions, and lower the overall cost of power generation in the country. After completion, the Lamu Coal Fired Power Plant will be the single largest Independent Power Producer (IPP) in the region and will account for up to 30% of power generation capacity in Kenya.

At a tariff of US Cents 7.81/kWh, the Lamu Coal Fired Power Plant will provide base-load capacity at the lowest non-subsidized tariff in the country. Additionally, it will have the flexibility to profile the generation according to the daily demand pattern, compared to other power production technologies that are inflexible; reducing generation costs by 12 pc to 36 pc.

George Njenga, the Commercial Leader, GE Steam Power, sub-Saharan Africa said, “Kenya’s energy demands are growing as the government seeks to implement its critical ‘Big Four’ agenda. GE Ultra Super-Critical Coal Power technology will deliver cleaner, affordable, reliable and efficient solutions as well as critical power to help meet the country’s growing needs.”