The African Development Bank has approved an additional $3.22 million in loan funding for Djibouti’s geothermal project at Lake Assal to allow for work on well number 2 and additional tests for a feasibility study for commercial exploitation.
This financing is in addition to the previous $6.83 million and previous $14.68 million approved by the Bank’s Board of Directors in June 2013 and May 2018 respectively, bringing its total contribution to $4.73 million.
The project for which this additional funding is intended aims to improve the quality of life of the Djiboutian population through the increase of green energy production capacity, the reduction of oil imports, and the reduction of greenhouse gas emissions.
Its objective is to explore the geothermal vapor field of Lake Assal, located in the center of the country, and to confirm the characteristics of the geothermal resource. In a three-phase program, the exploration of the field in question will first be carried out to confirm the characteristics of the geothermal resource; then there will be the development of the geothermal field and the construction of a power plant with a capacity of 20 megawatts (MW); and finally the extension of the capacity of this plant to 50 MW.
The project is also part of a geothermal energy development program and will help build the first such plant in Djibouti. It will ultimately increase the green energy production capacity of this country in the Horn of Africa, increase access to electricity, thanks to a more reliable and more efficient source of energy. affordable. It will also reduce Djibouti’s oil imports and greenhouse gas emissions. By improving access to electrical energy, it will help improve the quality of life for the people of Djibouti.