USTDA and Zarara Oil & Gas Limited have entered a US$996,600 grant agreement to evaluate the technical, economic and environmental aspects of the proposed Lamu gas-to-power project on Pate Island, Kenya.
The project is expected to add 50-200 MW of new electricity generation capacity, according to USTDA.
The driving force behind the project is a new deal signed between the Africa Business Forum, the US Government and its Power Africa partners. They have also announced a number of other energy projects. These deals are expected to be worth more than US$1bn worth of debt and finance and aim to provide access to electricity across sub-Saharan Africa.
Another project has seen the Government of Senegal and Black Rhino Group, a Power Africa Partner, sign a Memorandum Of Understanding for the development of a US$300mn 200MW dual fuel power plant. The project will utilize readily available fuel in the short term to add capacity to the Senegalese grid, and will capitalize on domestic natural gas resources that has been recently found. The power plant is expected to help Senegal to lower electricity prices while improving the reliability of the system, thus enhancing the competitiveness of local businesses.
A $1,200,000 USTDA-funded project planning advisory facility is expected to support the Government of South Africa's plans to procure more than 3 GW of gas-fired power from independent power producers. This will be alongside participation of US companies in gas-to-power projects.