Corbetti Geothermal (CGPLC) has been granted a two-year extension under its power purchase agreement (PPA) with Ethiopian Electric Power (EEP) for its geothermal project at Oromia, 250km south of the capital Addis Ababa.

The time extension will allow CGPLC to proceed with a three-well exploratory drilling programme to confirm the resource’s capacity.

Clearing and earthworks are under way to build the well pads and work has been completed to prepare the drilling infrastructure, including four water wells to supply water for the rig. Access roads have also been built to improve mobility in the vicinity of the site.

The drilling will take place in 2025, along with the bankable feasibility study for the project.

CGPLC signed the PPA with EEP and an implementation agreement (IA) with the government of Ethiopia for the Corbetti geothermal scheme in March 2020.

The PPA sets out commercial terms for a geothermal project of up to 150MW split into two phases of 50MW and 100MW. The PPA also grants CGPLC a right of first refusal over further expansion in the licence area. According to CGPLC, it is one of the most highly prospective fields in the Ethiopian Rift Valley, comparable in size with the Olkaria resource in Kenya.

As part of further preparations to start drilling works, CGPLC is looking to hire an owner’s engineer to support the drilling and well testing programme and the preparation of the feasibility study. Interested parties can contact CGPLC at jim.randle@corbettigeothermal.com. Bids will close at the end of May.

“The project has overcome a number of challenges in recent years, and we are pleased to have the ongoing support of EEP and our shareholders as we take the next steps towards unlocking the potential of the Corbetti resource,” said Jim Randle, CGPLC's general manager.

The firm targets developing the field in two phases over a six-year period. The first phase will drill up to six exploratory wells to raise debt finance to drill a further 4-7 wells and build a 50MW power plant which is expected to become operational in 2027. The second phase will consist of additional geothermal wells, a 100MW power plant and facilities.

CGPLC is developing the Corbetti resource with the support of Iceland’s Reykjavik Geothermal, the African Renewable Energy Fund and InfraCo Africa, a Private Infrastructure Development Group (PIDG) company.

Reykjavik Geothermal commenced the development of the Corbetti project in 2011. In 2014, Mauritius-based Berkeley Energy acquired the majority interest in the scheme through its Africa Renewable Energy Fund and was joined by InfraCo Africa in 2015.

"The Corbetti geothermal resource is one of the best in the world, with significant potential even beyond 150MW," said Trent Philipp, chief development officer, Reykjavik Geothermal. "[Our firm] remains committed to helping Ethiopia realise its significant geothermal potential and develop this important renewable energy source."

Ethiopia has an estimated exploitable geothermal potential of 5-10GW. It currently has just 7.3MW of installed capacity at Aluto Langano, which was commissioned in 1998. The country has another IPP under way alongside Corbetti, the Tulu Moye scheme.