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 ...
Can you explain the key technological advancements in the latest iteration of the Eavor-Loop™ system?
We have made a number of technological advancements at our project in Geretsried Germany . This includes innovation and learning resulting in dramatic improvements in our drilling performance and we’re proud to talk about our technology. For example, Eavor recently announced successful implementation of our in-house AMR (active magnetic ranging) tool which makes drilling more accurate and efficient. Eavor-Link™ AMR uses magnetic ranging while drilling to maintain constant alignment as it drills two wells at approximately 100 metres apart before they are intersected to create a continuous geothermal loop, which is then sealed with Eavor’s proprietary Rock-Pipe™ formula. With real-time data transmission between downhole sensors, the technology ensures tighter borehole proximity, more accurate well placement, and more efficient loop construction all of which are vital to the long-term scalability of Eavor’s closed-loop technology. It eliminates the need for wireline at any stage.
Some other advancements include our proprietary Rock-Pipe™ sealing and isolation system, which seals the wells we drill without the need for extensive casing. We have also successfully drilled multilateral exits from cased holes, ensuring precision in wellbore placement and alignment, and we have finished construction of an ORC power plant, subsurface pipeline systems, and all required infrastructure for power supply.
How does Eavor’s closed-loop system differ from traditional geothermal or other renewable energy solutions in terms of efficiency and scalability?
Conventional geothermal requires finding naturally occurring aquifers (hot water underground). It’s very geographically limited, which is why you only see it in places near the edges of tectonic plate boundaries or volcanic islands. Enhanced geothermal systems (EGS) use fracking to create an artificial reservoir in hot rock. This is a quicker process and less drilling intensive than building closed loops, but it has drawbacks. The wells have shorter life and redrilling is required to maintain the output of the field, as an example. Eavor can go virtually anywhere. We are looking for standard geothermal gradients with rocks that have no other special characteristics (other than we don’t want to be near a geohazard zone, fault structure, etc.). Once completed, an Eavor-LoopTM will remain on production as a generational asset, one that does not require redrilling or high operational costs for water treatment and re-injection. We don’t need a constant source of water, we don’t use fracking, and there’s a minimal land footprint.
What were the most significant findings from your recent operational projects (e.g., Eavor-Lite™ in Alberta or the Geretsried project in Germany)?
There’s a lot of attention on our first of a kind commercial-scale project in Geretsried. We are making history here with the first truly scalable form of clean, baseload, dispatchable energy (heating, cooling & electrical power) using geothermal. We anticipate generating first electricity at Geretsried in late 2025.
Drilling is the biggest cost driver of any geothermal project worldwide, but places like Alberta and Texas have seen an exponential decline in drilling costs over the last two decades. Repetition, learning, and an experienced workforce and supply chain have been important contributors. We have learned to adapt existing technology so that we can drill hotter and faster (Insulated Drill Pipe); we have created a tool to improve drilling accuracy and efficiency (AMR – active magnetic ranging); we have demonstrated that our sealing technology (Rock-PipeTM) effectively seals and isolates our lateral wells from the surrounding rock. Please see our technology page here. In essence, we’ve proven that we can do what we set out to do and in fact, get better at it as we go along. It’s important for us that through Geretsried, the world can see the reality of geothermal, and the Eavor-LoopTM as a secure, reliable, source of heat and power they can rely on. The local community has been able to go to the visitor center at Geretsried and see first-hand what’s happening on site, how the technology works, and they are ready to adopt geothermal. This is a true proof of concept project.
How do these results validate Eavor’s approach to scalable geothermal energy?
Once Geretsreid comes online, it will be the blueprint for scaling projects around the world. As we complete our first commercial project, we are coming down the learning curve, which will help reduce costs and accelerate the adoption of clean, baseload geothermal energy. Our head of communications and public affairs in Germany, Alexander Land, was recently quoted in the media saying, “What we learn and demonstrate here will open doors worldwide. Germany is becoming the reference country for closed-loop deep geothermal energy – and we’re proud to be part of this energy future.” Article here.
How does Eavor ensure consistent heat extraction in varying geological conditions?
The Eavor-LoopTM is designed to be built according to the geological conditions, not the other way around. Therefore, we plan our well depth, spacing and flow rates according to the subsurface environment because the system is so flexible. As an example, in an area with a higher temperature gradient, we can drill shallower and produce the same thermal output as a deeper reservoir somewhere else. The output is only driven by the thermal conductivity of the rock and the temperature gradient when you take it back to basics.
Which regions or markets is Eavor prioritizing for its next projects, and why?
Geretsried is on track to produce first electricity later in 2025. Once complete we anticipate electrical output approximately 8.2MW and thermal output 64 MW. As a technology-driven company, we continue to refine and develop our system to make geothermal more scalable and accessible everywhere. We have another project in Hanover and are exploring Neu-Ulm as well. Geretsried will open projects worldwide.
Can you discuss any recent partnerships (e.g., with oil & gas companies, governments, or utilities) that are accelerating deployment?
Bp came in early on and invested in our company through their ventures arm. The Japanese company Chubu Electric Power Co. invested in not only Eavor Technologies Inc., but also in our first commercial project in Germany. We also had a lot of support from the EU Innovation Fund, who awarded a €91.6 million grant in that first project.
The Canada Growth Fund (CGF) recently announced an additional investment up to ~C$138 million in Eavor, supporting innovation and development and deployment of new technologies to scale up our Eavor-LoopTM system. CGF first invested C$90 million in Eavor in October 2023, through a direct commitment in its Series B preferred equity fundraise.
The Government of Alberta also recently announced additional details regarding the Alberta Drilling Accelerator (ADA), which will support drilling technology, innovation and the future of energy development, including geothermal technology, in Alberta. As previously noted, drilling performance is essential to long-term scalability of geothermal.
How does Eavor’s levelized cost of energy (LCOE) compare to other renewables like wind, solar, or conventional geothermal?
Eavor’s technology development road map is predicated a drilling learning curve, and we expect to see learning rates similar to those of the unconventional shale revolution in the USA. Wells that were taking months to drill are now being drilled in seven days or less, partly because of learning and partly because of economies of scale and honing the supply chain. Our key focus is on making Geretsried the proving ground for a technical success and for demonstration of the learning curve this year. While current LCOE of energy delivered via an Eavor-Loop™ is currently higher than wind or solar, with the learning curve, we expect to follow a similar reduction in costs that wind and solar have seen over the past decades and that Eavor’s LCOE will be comparable to wind and solar by the mid-2030s.
Where do you see Eavor’s technology in the global energy transition over the next decade?
Over the next decade, we see Eavor’s technology becoming a cornerstone of the global energy system. The world needs solutions that are reliable, scalable, and capable of providing 24/7 clean energy. Our project in Germany is proving that closed-loop geothermal can deliver consistent, baseload heat and power without the intermittency challenges seen in wind and solar. Our solution is carbon-free, doesn’t use fracking, conserves water, and has a minimal land footprint – plus it can be deployed virtually anywhere.
Because our technology can be deployed anywhere, it can help nations diversify their energy mix, reduce reliance on imported fuels, and build secure energy systems, ultimately unlocking energy security.
The need for reliable power is only growing. With AI projected to drive a 165% increase in power demand by data centers by 2030, according to Goldman Sachs, there’s a clear need for clean, always-on energy.
How does Eavor ensure minimal environmental disruption compared to fracking or traditional geothermal?
Eavor’s system is closed and contained from the surrounding rocks, it does not inject or remove fluids from the underground; instead, it passively circulates water that has been pumped down. This means there is little disturbance to the underground environment. This technique practically elimates the induced seismicity risks. In addition, Eavor-LoopTM does not need a constant source of water and requires a minimal land footprint because the infrastructure is built under the ground and the above ground component does not require as much space because there is no water treatment on surface.
What role do you see for geothermal in achieving net-zero targets, especially in heating-dominated markets?
Geothermal aligns with clean energy goals and can help jurisdictions and countries along the journey to a carbon-free future. We can see the impact that our Eavor system can have on decarbonizing heating systems through the Geretsried project which will ultimately provide heat and electricity. The result will be a CO₂ savings per year of approximately 44,000 t CO₂ equivalents. Europe has thousands of coal-fired district heating systems that are looking to plug into geothermal.
What regulatory barriers exist for closed-loop geothermal, and how is Eavor working with governments to address them?
To drive next-gen geothermal forward and bring projects like Eavor’s to fruition, we are happy to have a role advocating for the industry and talking with governments about policy and programs that support scalability. On a global scale, geothermal has an education problem not a technology problem. The biggest hurdle today is building a complementary suite of policies that remove non-technical barriers such as permitting inefficiencies, and support the technology de-risking, demonstration and early stage deployment funding while incentivizing the market through strategic financial instruments.
What’s one thing you wish more people understood about Eavor’s potential to transform the energy landscape?
A drive for true energy autonomy is fundamentally reshaping the global energy landscape. Eavor's closed-loop geothermal solution, Eavor-LoopTM, can be built almost anywhere and access to the technology is available through our technology licensing business model making it a very scalable solution. It will deliver clean, affordable energy for decades, giving industries and communities control over their energy supply and the freedom to shape their energy future.
As a reliable 24/7 carbon-free solution, Eavor’s technology can shape the future energy mix as a baseload source of clean energy, without the intermittency associated with wind and solar.
Geothermal is a massive, and as of yet – untapped – energy source. The heat beneath our feet will power what’s next and fill growing energy demand in a sustainable way. Eavor’s mission is to enable local clean energy autonomy, everywhere.
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