Developer of the largest private sector led infrastructure project in East and Central Africa, Gulf Energy, on Thursday entered into a Clean Coal Technology agreement with General Electric (GE).
The agreement will enable Gulf Energy’s 1050Mw Lamu Coal Power Plant, Amu Power, run on GE’s Ultra-Supercritical Clean Coal Technology and the combination will become one of the most technologically advanced coal fired power plants in the world.
With the agreement, GE through its affiliates will acquire a stake in the equity of Amu Power, after it has obtained 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.
“This is truly a historic moment for Kenya and the East African region as a whole,” said Francis Njogu, Amu Power Managing Director. “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.”
Following the Government of Kenya’s (GOK’s) ‘Big Four’ agenda, specifically in the manufacturing sector, with the aim of providing steady, reliable and affordable power, it is believed that the Lamu Coal Fired Power Plant will be a key player in supporting the realization of the sector’s growth and will create new employment opportunities for Kenyan’s.
At a tariff of 7.81/kWh US Cents, the Lamu Coal Fired Power Plant will provide base-load capacity at the lowest non-subsidized tariff in the East African country. Additionally, the plant will have the flexibility to profile the power generation according to the daily demand pattern, compared to other power production technologies that are inflexible; reducing generation costs by 12 percent to 36 percent.
Gulf Energy is the exclusive supplier to the largest independent power generation company in Kenya.