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 ...
Strataphy and Baker Hughes Forge Strategic Alliance to Accelerate Geothermal Cooling and Saudi Arabia’s Energy Transition
Saudi Arabia’s journey toward a low-carbon, diversified energy future has taken a decisive step forward with the signing of a strategic Memorandum of Understanding (MoU) between Strataphy and global energy technology leader Baker Hughes. Announced in Khobar in December 2025, the partnership signals a powerful convergence of deep-tech innovation and industrial-scale execution,aimed squarely at accelerating geothermal cooling and advancing the Kingdom’s broader energy transition agenda.
At a time when cooling demand is surging across the Middle East,driven by rapid urbanization, giga-projects, data centers, and industrial expansion,this collaboration positions geothermal energy not merely as an alternative, but as a cornerstone technology for sustainable infrastructure in Saudi Arabia.
A Landmark Agreement with Strategic Implications
Under the MoU, Baker Hughes will serve as a preferred equipment and services provider for Strataphy’s growing portfolio of geothermal cooling deployments across the Kingdom. This strategic framework creates a foundation for cooperation across project development, subsurface engineering, equipment supply, and long-term operational excellence.
The signing ceremony, attended by senior leadership from both organizations, underscored the seriousness of intent behind the agreement. For Strataphy, a fast-growing deep-tech company, the partnership validates the scalability and industrial readiness of its geothermal cooling platform. For Baker Hughes, it reinforces a long-standing commitment to geothermal energy and aligns seamlessly with Saudi Arabia’s Vision 2030 objectives.
Fadi Al-Jafari, Vice President for the Saudi Arabia Geozone at Baker Hughes, captured the significance of the moment:
“With technology, solutions, and expertise that stretches from the subsurface to the surface, Baker Hughes has been driving progress at scale in geothermal energy for more than 40 years. We are excited to collaborate with Strataphy to deploy our technologies in innovative direct-use geothermal applications in the Kingdom.”
Why Geothermal Cooling Matters for Saudi Arabia
Cooling is one of the largest drivers of electricity demand in Saudi Arabia, accounting for a significant share of peak load,particularly during summer months. Traditional air-conditioning systems are energy-intensive, carbon-heavy, and costly to operate at scale. As the Kingdom rolls out mega-cities, digital infrastructure, hospitals, and industrial hubs, the challenge of sustainable cooling has become both urgent and strategic.
Geothermal cooling offers a compelling solution. By leveraging the Earth’s stable subsurface temperatures, geothermal systems can reduce electricity consumption for cooling by up to 50% compared to conventional HVAC technologies. Unlike solar or wind, geothermal cooling operates 24/7, is weather-independent, and delivers consistent performance throughout the year,making it ideal for mission-critical facilities such as data centers and healthcare complexes.
In a country blessed with vast subsurface potential and advanced drilling capabilities, geothermal cooling represents a natural extension of Saudi Arabia’s energy expertise ,repurposed for a cleaner, more efficient future.
Baker Hughes: From Oilfield Expertise to Energy Transition Leadership
Baker Hughes brings unmatched scale and technical depth to the partnership. Operating in more than 120 countries, the company has decades of experience across the entire geothermal value chain, from subsurface characterization and drilling technologies to surface equipment and digital optimization.
Importantly, Baker Hughes is no newcomer to Saudi Arabia. Its long-standing presence includes local manufacturing, workforce development, and strategic collaboration with national stakeholders. This deep local integration ensures that geothermal cooling projects developed under the MoU can be executed efficiently, competitively, and in alignment with local content and localization goals.
Beyond geothermal, Baker Hughes’ portfolio spans industrial decarbonization, emissions abatement, and digital energy solutions,capabilities that further strengthen the long-term impact of the partnership. In many ways, this MoU exemplifies how oil and gas expertise can be directly redeployed to accelerate clean energy adoption.
Strataphy: Redefining Cooling Through Subsurface Innovation
Founded by Dr. Ammar Alali and Ahmed Alhani, Strataphy is pioneering a new category of subsurface-powered cooling designed specifically for large-scale infrastructure. The company’s proprietary geothermal systems are engineered to deliver reliable, low-carbon cooling for data centers, giga-projects, and entire urban districts.
One of Strataphy’s most disruptive innovations is its Cooling-as-a-Service model. By removing the need for upfront capital investment, the company enables clients to adopt geothermal cooling without financial or technical barriers. This model accelerates deployment, reduces risk, and aligns incentives around long-term performance and energy savings.
Dr. Ammar Alali, CEO of Strataphy, described the partnership as a defining milestone:
“Collaborating with a global technology leader like Baker Hughes not only demonstrates the scalability of our geothermal cooling platform but also strengthens our ability to execute high-impact energy projects across the Kingdom. Together, we’re demonstrating that deep-tech innovation and local execution can go hand-in-hand to drive the energy transition forward.
Powering Vision 2030 Through Clean Cooling
Saudi Arabia’s Vision 2030 places sustainability, energy efficiency, and economic diversification at the heart of national development. Geothermal cooling aligns directly with these priorities,reducing electricity demand, lowering emissions, creating high-skilled jobs, and fostering local technology ecosystems.
The Strataphy–Baker Hughes collaboration is particularly well-positioned to support Vision 2030 giga-projects, where cooling demand is massive and sustainability benchmarks are stringent. District cooling networks, smart cities, advanced healthcare campuses, and hyperscale data centers all stand to benefit from geothermal solutions that are efficient, resilient, and future-proof.
Moreover, success in Saudi Arabia could establish a blueprint for geothermal cooling deployment across the wider Middle East and North Africa,regions facing similar climate conditions and energy challenges.
A Signal to the Global Geothermal Market
Beyond national impact, this MoU sends a strong signal to the global geothermal industry. It demonstrates that geothermal energy is no longer limited to electricity generation alone, but is rapidly expanding into direct-use applications with enormous market potential.
By combining Strataphy’s agile deep-tech innovation with Baker Hughes’ industrial muscle, the partnership bridges the gap between concept and scale one of the biggest hurdles facing geothermal adoption worldwide.
Conclusion: From Agreement to Transformation
The Strataphy–Baker Hughes MoU is more than a corporate agreement; it is a statement of intent. It reflects a growing recognition that the energy transition is not only about generating clean power, but also about rethinking how energy is used especially for cooling in hot, rapidly developing regions.
As projects move from planning to execution, this partnership has the potential to redefine cooling infrastructure in Saudi Arabia, unlock new geothermal markets, and demonstrate how legacy energy expertise can be transformed into a catalyst for sustainable innovation.
In the evolving story of geothermal energy, Saudi Arabia is no longer just watching it is actively shaping the future.
Source:Strataphy
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