OCTOBER 2014 – WASHINGTON, D.C. – Over 40 senior-level officials and industry stakeholders from Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda participated in the Power Africa-AUC Geothermal Roadshow, September 27–October 4, 2014.  The delegation traveled to Portland, Oregon; Reno, Nevada; and Washington, DC to meet with private geothermal developers, equipment manufacturers, geothermal service providers and finance institutions.  This transaction-focused roadshow aimed to spur interest among private companies to invest in East Africa’s rich and abundant geothermal resources by fostering a greater understanding of the opportunities in the region.  Delegate presentations articulated data from identified geothermal resources as well as the legal, policy, regulatory and financial market conditions specific to each of the six countries represented.

This program was co-organized by the interagency USG partners of the Power Africa Initiative, funded by the United States Agency for International Development (USAID) and implemented through the U.S.-East Africa Geothermal Partnership (EAGP) and Power Africa Transactions and Reforms Program (PATRP).  Power Africa partnered with the African Union Commission (AUC) to host this program and engaged other regional institutions, such as the African Rift Geothermal Program (ARGeo) and African Development Bank.

ABOUT THE POWER AFRICA – AUC GEOTHERMAL ROADSHOW

The Power Africa - African Union Commission Geothermal Roadshow was a targeted tour of US cities and major events that showcased investment opportunities for U.S. geothermal developers in East Africa from September 27 to October 4, 2014.  The delegation consisted of government officials from Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda, as well as public and private project developers and was hosted by Power Africa Coordinator, Andrew Herscowitz, other U.S. government officials and African Union Commission officials.  The roadshow aimed to spur interest among American companies to invest in East Africa’s rich and abundant geothermal resources and to foster a greater understanding of the project opportunities and market conditions related to legal, policy, regulatory and financial constraints specific to each country in the region.

Power Africa advisors supported the delegation of government officials and geothermal developers from East Africa to prepare presentations and communication materials directed towards possible US developers. Throughout business meetings and geothermal conference events on the roadshow agenda, delegates articulated geothermal resource characteristics and incentives in place or planned to attract accelerated investment in geothermal related projects.  Roadshow participants from the public and private sector also shared their insights regarding the perceived barriers to investment in the region in order to help boost US developer confidence in exploring new projects.

DELEGATION PARTICIPATION IN THE GEA GEOTHERMAL ENERGY EXPO & GRC ANNUAL MEETING

To maximize the delegation’s interface with geothermal industry, the Power Africa-AUC Geothermal Roadshow was scheduled to coincide with the Geothermal Resources Council (GRC) 38^th Annual Meeting and the Geothermal Energy Association (GEA) Geothermal Energy Expo®.  This year’s GRC Meeting and GEA Expo were held in Portland, Oregon and convened 1,400 geothermal professionals from 39 different countries.

The GRC Annual Meeting is the largest geothermal event in North America, providing an international forum where members, participants and guests learn about the latest advances in geothermal technologies through technical and poster sessions.

The concurrent GEA Geothermal Energy Expo® offers the opportunity to learn about the latest in geothermal equipment and services while making important business contacts. Every year, the Expo hosts the world's largest gathering of vendors providing support for geothermal resource exploration, characterization, development, production and management. It provides a unique opportunity for exhibitors to showcase their projects, equipment, services and state of the art technology to the geothermal community.  This year’s GEA Expo featured 112 different exhibits, including the Power Africa Pavilion, which showcased geothermal opportunities in the roadshow delegate countries and various Power Africa tools to assist in these developments.  The Pavilion side booths also served as a designated space for one-on-one meetings between delegates and private companies or Power Africa representatives. 

In addition to participating in the technical sessions and trade show floor, the roadshow delegates attended the 7th International Luncheon, organized by the GRC and U.S. State Department.  Two senior-level roadshow delegates, Ato Mekuria Lemma (Ethiopian Electric Power) and Ruth Musembi (Geothermal Development Company, Kenya), were invited to speak at the International Luncheon on the exciting developments in geothermal power and investment opportunities in Ethiopia and Kenya.

For more information on these geothermal industry events, please see the GRC website (www.geothermal.org) and the GEA website (www.geo-energy.org).

MEETINGS WITH PRIVATE INDUSTRY AND POWER AFRICA AGENCIES

In addition to interacting with private geothermal industry representatives through the GRC Annual Meeting and the GEA Geothermal Energy Expo®, roadshow organizers arranged meetings with 27 different private companies for members of the delegation over the course of 5 days.  The Power Africa – AUC Geothermal Roadshow engaged companies with various capabilities, ranging from early stage exploration, well drilling, or plant design services companies, to private developers, financiers and project management firms.

Meetings that were open to all East African delegates took the form of briefing-style presentations from private companies, followed by Q&A sessions and break-out discussions. Some private companies, including Symbion Power, Reykjavik Geothermal, ENEL Green Power North America, Ormat and others, requested one-on-one meetings with delegates from one country or one specific organization. Individual meetings focused on specific project opportunities and areas of potential collaboration or investment between the delegate institutions and private companies.

The roadshow delegation met with the following entities:

Geothermal Developers

• Aquarius Global Energy Partners / Cornerstone Energy Solutions
• ENEL Green Power North America (Subsidiary of ENEL)
• GreenFire Energy
• Ormat
• Ram Energy
• Reykjavik Geothermal
• Symbion Power
• Sosian Energy

Geothermal Goods & Services Companies

• Allman Group/Langson Energy
• Baker Hughes
• Capuano Engineering Company
• Dewhurst Group
• EGS, Inc.
• ElectraTherm
• Geologica Inc.
• Geothermal Resource Group (GRG)
• Geothermal Resources Council (GRC)
• Industrial Builders
• Industrial Cooling Solutions, Inc.
• Leidos
• POWER Engineers
• Toshiba
• Turboden (a group company of Mitsubishi Heavy Industries)
• Veizades Group

Finance Companies and Organizations

• The World Bank
• International Finance Corporation (IFC)
• Standard Bank
• EleQtra
• Investec Holdings
• Aldwych Capital

International Organizations and USG Agencies:

• African Union Commission
• U.N. Environment Programme – African Rift Geothermal Program (ARGeo)
• U.S. Department of Energy (DOE)
• U.S. Agency for International Development (USAID)
• U.S. Export-Import Bank
• U.S. Trade and Development Agency (USTDA)
• U.S. Department of State
• U.S. Navy Geothermal Program
• National Renewable Energy Laboratory

GEOTHERMAL ROADSHOW SITE VISITS

After attending the GRC Annual Meeting and GEA Expo, a large portion of the delegation traveled to Reno, Nevada to participate in two informative site visits with U.S. companies, ElectraTherm and Ormat.   ElectraTherm’s CEO, John Fox, presented on the company’s capabilities in designing and manufacturing modular well-head generation units, and demonstrated the “Green Machine” units and associated equipment with other ElectraTherm staff.  The modular Green Machine units can be used to generate power using relatively low temperature geothermal resources, found in some of the countries represented in the roadshow delegation. ElectraTherm’s Green Machines can be also be used in conjunction with the direct use of geothermal heat for applications including space heating for greenhouses, milk pasteurization, meat processing, vegetable drying and other commercial uses.

The group also had the opportunity to do a site visit at Ormat’s Steamboat binary geothermal power plant. Ormat Technologies is a leading vertically integrated company dedicated to providing solutions for geothermal power, recovered energy generation (REG) and remote power.  The Steamboat complex consists of six power plants with a combined generating capacity of 78 MW, and is the main source of baseload power for the citizens of Reno, Nevada. 

An Ormat subsidiary (OrPower 4 Inc.) developed the Olkaria III power plant in Kenya, and recently signed an amended Power Purchase Agreement (“PPA”) with Kenya Power and Lighting Company Limited (KPLC) to expand the capacity of the complex by 24 MW.  This expansion would bring Olkaria III’s total capacity to 134 MW.  According to Ormat CEO, Isaac Angel, the fourth plant is expected to come on line in the second half of 2016 and to sell electricity under a 20 years PPA with KPLC. (Source: Ormat Press Release, December 4, 2014)

PROGRAM RESULTS

The Power Africa–AUC Geothermal Roadshow generated the following measured results.  We anticipate that more business related outcomes of this program will materialize and be made public in the coming months.  Currently, Power Africa and EAGP representatives are working to assist in the “next steps” for business opportunities identified during the roadshow between private and public sector stakeholders.

• Introductions Facilitated

Over the course of the Geothermal Roadshow agenda, 40+ senior level delegates from East Africa met one-on-one with the following:

• 27 total private companies
• 8 geothermal developers
• 6 finance institutions
• 6 U.S. Government organizations
• 3 Major regional organizations – African Union Commission, African Development Bank and the UN Environment Programme’s African Rift Geothermal Program (ARGeo)

• Information Dissemination on East African Geothermal Prospects and Investment Opportunities

As part of the roadshow, PATRP and EAGP technical advisors assisted delegates to prepare promotional materials showcasing investment opportunities and informative presentations.  The following materials were distributed during and following the roadshow events:

• 4 Country geothermal resource and opportunity handouts (Djibouti, Ethiopia, Rwanda and Tanzania)

Distributed at the GEA Expo and the Power Africa–AUC Geothermal Roadshow Briefing in Washington, DC, and by email.

• 8 Presentation slide decks from key East African institutions

Presented at the GEA Expo, International Luncheon, Power Africa–AUC Geothermal Roadshow Briefing in Washington, DC, and at the IFC Roundtable meeting.  Available online at http://geo-energy.org/East%20African%20Geothermal%20Information.aspx

• Private Companies Newly Interested in East African Geothermal Sector

The roadshow brought the geothermal development opportunities in East Africa to the attention of several companies which had not previously been interested in investing in the region.  Some of the new companies to participate in EAGP activities include:

• ENEL Green Power North America
• EleQtra
• Investec Holdings
• Aldwych Capital
• Industrial Builders
• Industrial Cooling Solutions, Inc.
• Turboden (a Mitsubishi Heavy Industries company)
• ElectraTherm
• Aquarius Global Energy Partners / Cornerstone Energy Solutions
• GreenFire Energy

• New Business Opportunities Reported
  • 60% of private company survey respondents reported that they anticipated new business ventures or partnerships with East African institutions they met with during the roadshow.
  • All roadshow delegate respondents reported that they anticipated new business ventures with companies they met with on the roadshow, particularly with developers such as Ormat and Symbion, and with goods and services companies, namely Dewhurst Group, EGS Inc. and ElectraTherm.

ROADSHOW OFFICIAL DELEGATES & PARTICIPANTS

Official Delegates

1. Mr. Abdou Mohamed Houmed - General Manager, Development Office of Geothermal Energy (ODDEG)
2. Mr. Jalludin Mohamed Abdoul-Kayoum - Director General, National Center for Research and Studies (CERD)
3. Mr. Mahdi Darar Obsieh - Directeur Général, National Investment Promotion Agency
4. Ato Mekuria Lemma - Head of Corporate Planning, Ethiopian Electric Power (EEP)
5. Ato Mulugeta Asaye Adale - Geothermal Projects Manager, Ethiopian Electric Power (EEP)
6. Ato Wassihun Abate Abebe - Director of Legal Affairs Directorate, Ministry of Finance and Economic Development (MoFED)
7. Mr. Stanley Kamau - Director of PPP Unit, Ministry of Finance
8. Eng. David Kagiri - Acting Business Development & Strategy Director, KenGen
9. Mr. Alain Harelimana – Advisor,  Ministry of Infrastructure
10. Ms. Uwera Rutagarama – Head of Geothermal Development Unit, Energy Development Corporation Limited
11. Mr. Samwel Mayiku – Principal Economist, Ministry of Finance
12. Mr. Vincent Kato – Project Manager for Geothermal Resources, Department of Geological Survey and Mines
13. Mr. Rashid Ali Abdallah - Energy Expert, Department of Infrastructure and Energy, African Union Commission (AUC)

Public and Private Roadshow Participants

1. Ms. Saida Omar Abdillahi – General Manager of Djiboutian Agency of Energy Management (ADME), Ministry of Energy and Natural Resources (Djibouti)
2. Mr. Djama Ali Guelleh – Directeur Général, Electricité de Djibouti (EDD)
3. Mr. Kayad Moussa Ahmed – Reservoir Engineer, Development Office of Geothermal Energy (ODDEG) (Djibouti)
4. Mr. Edwin Kasanga – Managing Director, InfraTech (Tanzania)
5. Mr. Peter Thuo – Director of Business Development, Accurate Power Systems Ltd (Kenya)
6. Mr. Allan Munyua – Division Principle, Power and Engineering, TransCentury Limited (Kenya)
7. Ms. Ruth Musembi – Head of Corporate Communication & Marketing, GDC (Kenya)
8. Mr. Joseph Kitilit – Chief Engineer, Corporate Planning & Projects, GDC (Kenya)
9. Mr. Patrick Kaptoo – Chief Officer, Supply Chain, GDC (Kenya)
10. Mr. Reuben Ngosi – Chief Engineer, Logistics, GDC (Kenya)
11. Mr. Jack Kiruja – Engineer, Direct Use, GDC (Kenya)
12. Ms. Rosemary Njenga – Corporate Planning & Projects Officer, GDC (Kenya)
13. Ms. Nelly Kirisia – System Analyst ICT, GDC (Kenya)
14. Ms. Rebecca Talaam – Chief Human Resources Officer, GDC (Kenya)
15. Ms. Ruth Munyao – Manager, Corporate Communication and Marketing, GDC (Kenya)
16. Eng. Geoffrey Muchemi – Geothermal Development Manager, KenGen (Kenya)
17. Ms. Rebecca Miano – Corporate Affairs Director, KenGen (Kenya)
18. Ms. Ruth Wamalwa – Reservoir Engineer, KenGen (Kenya)
19. Mr. Ammon Ojwang – Geophysicist, KenGen (Kenya)
20. Mr. Michael Mwania – Geologist, KenGen (Kenya)
21. Mr. James Kahutu – Drilling Engineer, KenGen (Kenya)
22. Mr. Abel Rotich – Geothermal Development Director, KenGen (Kenya)
23. Ms. Ziporah Ndegwa – Board Member, KenGen (Kenya)
24. Mr. Shaun Zambuni – Group CEO, Sosian Energy (Kenya)
25. Matthew Kavanagh - Vice President, Business Development in Africa, Symbion Power, LLC.  (USA)
26. Magnus Asbjornsson - Co-Founder/Regional Director, Middle East and Africa, Reykjavik Geothermal (USA/Iceland)
27. David McGill – COPI Development (Cameroon)
28. Mr. Moses Mbugua – Metsec Cables Ltd.
29. Dr. Meseret Zemedkun – Program Manager for ARGeo, Regional Office for Africa, United Nations Environment Programme (UNEP)
30. Mr. Gabriel Negatu – Regional Coordinator, East Africa Resource Center (EARC), African Development Bank Group

ABOUT POWER AFRICA

On June 30, 2013 in Cape Town, South Africa, President Obama announced Power Africa — an initiative to double the number of people with access to power in Sub-Saharan Africa. Power Africa will achieve this goal by unlocking the substantial wind, solar, hydropower, natural gas, and geothermal resources in the region to enhance energy security, decrease poverty, and advance economic growth.

Power Africa works with African governments, the private sector, and other partners such as the World Bank and African Development Bank to add more than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity in sub-Saharan Africa. By expanding mini-grid and offgrid solutions and building out power generation, transmission, and distribution structures, Power Africa will also increase electricity access by adding more than 60 million new household and business connections. At the same time, Power Africa will enhance energy resource management capabilities, allowing partner countries to meet their critical energy needs and achieve sustainable, long-term energy security.

For more on Power Africa, please visit the website: http://www.usaid.gov/powerafrica

ABOUT THE US-EAST AFRICA GEOTHERMAL PARTNERSHIP

The U.S.-East Africa Geothermal Partnership (EAGP) was established in September 2012 to promote the development of geothermal energy resources and projects in East Africa. It also encourages and facilitates the involvement of the U.S. geothermal industry in the region. The EAGP program is a partnership between the U.S. Agency for International Development (USAID) and the Geothermal Energy Association (GEA), and is implemented by the U.S. Energy Association (USEA).  EAGP focuses on six priority countries: Djibouti, Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

Through the EAGP program, the United States Energy Association (USEA) is providing technical and transaction advisory support and capacity building to public organizations and government ministries involved in geothermal development in the region through executive exchanges, workshops and short-term technical assistance assignments to learn about geothermal best practices from their counterparts in the U.S. and third countries.

For additional information, please contact Andrew Palmateer at [email protected].