February 28 (Renewables Now) - Toyota Tsusho Corp (TYO:8015) of Japan and state-owned power producer Ethiopian Electric Power have earlier this month inked a contract for a 5-MW geothermal power facility in central Ethiopia.
The facility will be located in the Aluto Langano geothermal field in the East Shewa Zone, Oromia Region. The Japan International Cooperation Agency's grant aid programme will provide JPY 1.8 billion (USD 16.9m/EUR 15.4m) for the construction of the project.
Toshiba Energy Systems & Solutions Corporation will provide the geothermal steam turbine and generator for the facility, which will be constructed by Turkey-based engineering firm Egesim Energy Electro-Mechanic Construction Contracting Co Ltd.
The geothermal plant is expected to start commercial operations in August 2021.
The project is part of the Ethiopian government's plans to take advantage of the country's geothermal potential to deal with the current power shortage, with a goal of developing geothermal power projects with a total capacity of about 2.5 GW by 2030.
This is Toyota Tsusho's second geothermal project in Africa, following its previous one in Kenya.
(JPY 100.0 = USD 0.921/EUR 0.839)