Corbetti Geothermal PLC (CGPLC) is pleased to announce that it has been awarded a two-year time extension under its Power Purchase Agreement (PPA) with Ethiopia Electric Power (EEP). This time extension will allow CGPLC to proceed with its exploration drilling program on the Corbetti resource in Ethiopia, one of the most highly prospective resources in the Ethiopian Rift Valley, comparable in size with the Olkaria resource in Kenya.
The PPA sets out the commercial terms for a geothermal energy project of up to 150 MW split into two phases of 50 MW and 100 MW. The PPA also grants Corbetti Geothermal PLC a right of first refusal over further geothermal expansion in the license area, with early indications from surface exploration suggesting that the resource may be suitable for up to 500 MWe of installed generation capacity.
Located in Oromia, 250km south of Addis Ababa, the project is being developed by Corbetti Geothermal with the support of principal project participants Reykjavik Geothermal, the African Renewable Energy Fund, and Private Infrastructure Development Group (PIDG) company, InfraCo Africa.
General Manager of Corbetti Geothermal PLC, Jim Randle said of today’s announcement: “The project has overcome a number of challenges in recent years, and we are pleased to have the ongoing support of EEP and our shareholders as we take the next steps towards unlocking the potential of the Corbetti geothermal resource.”
Gilles Vaes, CEO of PIDG company, InfraCo Africa said, “InfraCo Africa is excited to support Corbetti Geothermal as it progresses towards exploratory drilling. We have been committed to Corbetti Geothermal for many years and remain dedicated to working with our partners to develop Ethiopia’s geothermal resource to ultimately deliver clean, baseload power for the benefit of the country’s domestic and business customers.”
Trent Philipp, Chief Development Officer of Reykjavik Geothermal added, “We are pleased to be moving forward with drilling in Corbetti. The Corbetti geothermal resource is one of the best in the world with significant potential even beyond 150MW. RG remains committed to helping Ethiopia realize its significant geothermal potential and develop this important renewable energy source.”
The company is now planning to proceed with a three-well exploratory drilling program, to confirm the inferred resource. This will allow the optimum development strategy to be developed based on the indicated resource characteristics, estimated potential electricity generation capacity and EEP’s expansion plans which will be documented in a bankable Feasibility Study.
Work has been completed on site to prepare the drilling infrastructure, including the drilling of four water wells to supply water for the drilling rig. Access roads built by the project have already significantly improved mobility in the vicinity of the project, promoting trade of agricultural produce. Work to upgrade these roads to accommodate the arrival of large drilling equipment has been completed and clearing and earthworks are also underway to build the well pads.
As part of further preparations for starting drilling, CGPLC wishes to engage the services of an Owner’s Engineer to support the drilling and well testing program and the preparation of the Feasibility Study. Interested parties should contact the CGPLC General Manager, Mr. Jim Randle at jim.randle@corbettigeothermal.com, to request a copy of the RfP and bidding documentation. Bids will close at the end of May 2024.
