GE to acquire stake in Amu Power after clean coal technology deal

May 16, 2018
At a tariff of US Cents 7.81/kWh, the plant will provide base-load capacity at the lowest non-subsidized tariff in the country/FILE

, NAIROBI, Kenya, May 16 – A subsidiary of General Electric (GE) is set to acquire a stake in Amu Power – the consortium building the 1050Mw Lamu Coal Power Plant – following a deal that will see the coal plant use GE’s Ultra-Supercritical Clean Coal Technology.

Under the Agreement, GE Power will design, manufacture and deliver its Ultra Super-Critical clean coal technology components that include a boiler and steam turbine generator and air quality controls systems for the Lamu Coal Power Plant.

In a briefing to President Uhuru Kenyatta at State House following the signing, the parties informed President Kenyatta that GE’s technology will guarantee a clean environment through elimination of emissions, and lower the overall cost of power generation in the country.

The parties further noted that upon completion, the Lamu Coal-Fired Power Plant will be the single largest Independent Power Producer (IPP) in the region and will account for up to 30 percent of power generation capacity in Kenya.

“This is truly a historic moment for Kenya and the East African region as a whole. 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,” said Francis Njogu, Amu Power Managing Director.

The Lamu Coal-Fired Power Plant project is part of Kenya’s vital and crucial initiative in the energy sector to address present electricity affordability and reliability challenges.

At a tariff of US Cents 7.81/kWh, the plant will provide base-load capacity at the lowest non-subsidized tariff in the country.

Additionally, it will have the flexibility to profile the generation according to the daily demand pattern, compared to other power production technologies that are inflexible; reducing generation costs by 12 percent – 36 percent.

“Kenya’s energy demands are growing as the government seeks to implement its critical ‘Big Four’ agenda. GE Ultra Super-Critical Coal Power technology will deliver cleaner, affordable, reliable and efficient solutions as well as critical power to help meet the country’s growing needs,” George Njenga, the Commercial Leader, GE Steam Power, Sub-Saharan Africa said.

GE’s Ultra Super-Critical technology keeps raising the efficiency bar of coal power plants and has reached 47.5pc efficiency in the world’s most efficient coal power plant in Germany.

The technology is currently in operation in new generation steam plants like the Manjung 4 in Malaysia as well as future plants like the Hassyan in Dubai.

Statistics show that connections to the national grid grew to 6.2 million in 2017 up from one million in 2010.

As the country transitions into a middle-income economy by 2030, supply of adequate, reliable and affordable energy is a key foundation.

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