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KenGen Risks Losing Olkaria Geothermal Wells Over Licence Error

KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017.  The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity.  Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...

Margün Energy Taps Turkey’s Geothermal Potential for Lithium Extraction"

Turkish Renewables Company Margün Energy Targets Lithium in Geothermal Waters
Location: Seferihisar, İzmir Province, Western Turkey


🚀 Margün Energy Enters the Lithium Game
Margün Energy, a Turkish renewables company, has announced plans to explore lithium extraction from geothermal brine at its newly acquired 12 MW geothermal facility in Kavakdere, Seferihisar. The site lies within a vast 3,125-hectare exploration concession in İzmir that the company intends to analyze for lithium mineral content and other valuable elements.
While Margün Energy clarified that it is not a mining company and has not applied for mining licenses, it emphasized that direct extraction from geothermal fluid is fundamentally different from conventional mining. If sufficient lithium concentrations are confirmed, Margün plans to build an on-site extraction plant integrated with its geothermal operations.

🌞 Hybrid Power Boost
In tandem with its geothermal initiative, Margün is pursuing a hybrid model. A 5.4 MW photovoltaic (solar) unit has been proposed to be added to the existing geothermal plant. This is expected to produce around 10 GWh annually, potentially increasing annual revenues by over a million dollars. Once complete, Margün’s total installed capacity will reach 135.4 MW, spanning hydropower, wind, solar, and geothermal energy through its affiliate, Enda Energy Holding.

🔋 Turkey’s Geothermal Mineral Vision
Turkey already ranks among the global leaders in geothermal energy, with 65 operational plants contributing around 1.74 GW to the national grid. Yet, the country is only utilizing an estimated 10% of its full geothermal potential. Over 1,000 wells across the nation generate approximately 100,000 tons of brine per hour, containing lithium in concentrations of about 20 parts per million.
With these figures, it's estimated that lithium extraction from geothermal brine could yield up to 35,000 tons annually—more than enough to cover Turkey’s domestic demand and position the country as a significant global player in lithium production.

⚙️ Tech Innovation & Strategic Synergy
Extracting lithium alongside geothermal energy production offers a dual-revenue model—electricity and battery-grade materials—with minimal additional environmental impact. Compared to conventional mining, direct lithium extraction bypasses the need for evaporation ponds and reduces land and water disruption.
This strategy aligns with broader energy and industrial transitions happening in countries pursuing net-zero goals, where geothermal resources are being reimagined as not only a source of clean power but also a reservoir for critical minerals.

🌱 Economic & Environmental Upside
Integrating lithium recovery into geothermal operations can dramatically improve the economics of such projects, reducing payback periods and unlocking additional value from existing infrastructure. The extracted lithium comes from brine already being pumped for energy, which means no new environmental disturbance is necessary.
This approach also supports Turkey’s ambitions for building domestic EV battery supply chains, complementing its robust auto manufacturing industry. Experts estimate that Turkey’s geothermal lithium reserves could supply domestic lithium needs for decades while generating billions in export revenue.

⚠️ Challenges & Local Sentiment
Despite the promise, local residents in Seferihisar have raised environmental concerns. While the project differs fundamentally from traditional mining operations, public awareness and community engagement will be key to maintaining support.
One technical challenge is the relatively low concentration of lithium in geothermal brine. Effective and sustainable extraction will depend on the development and deployment of advanced, low-impact technologies for direct lithium extraction.

🧭 What’s Next?
Margün Energy plans to proceed with field testing and sampling to determine the economic viability of lithium extraction. If the results are favorable, a pilot extraction plant may be constructed as part of the existing geothermal infrastructure.
At the national level, Turkey is working toward increasing its geothermal capacity to 3 GW by 2030, backed by a combination of international financing and domestic investment. Lithium extraction from geothermal brine may become a powerful catalyst for reaching that goal while contributing to the global clean energy supply chain.

✅ Conclusion
Margün Energy’s bold move signals a new frontier in clean energy. By transforming geothermal sites into dual-purpose assets—delivering both renewable power and strategic minerals—the company is helping redefine what’s possible in the energy transition.
This is more than geothermal. It’s geothermal with purpose, powering the future from the deep earth below.

Source: Balkan Energy

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