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 ...
Alaska’s Geothermal Breakthrough: How the State–POSCO Deal Could Ignite a Volcanic Clean Energy and Industrial Revolution
Alaska’s Geothermal Gold Rush: Why the State–POSCO Deal Could Ignite One of the World’s Most Powerful Clean Energy Revolutions
By: Robert Buluma
Alaska has just sent a clear signal to the global energy market: the future is not only oil, gas, or even critical minerals—it is heat beneath the Earth’s surface.
The recent memorandum of understanding between the State of Alaska and covers six major development projects, including geothermal energy, green fuels, critical minerals, and infrastructure expansion. Among them, one stands out as the most transformative, most scalable, and most future-proof: the Mount Augustine Geothermal Energy Project.
While other sectors in the agreement may dominate headlines—rare earths, ports, aviation fuels—it is geothermal energy that quietly underpins the entire long-term vision.
Because once you unlock geothermal heat at scale, everything else becomes easier.
Alaska Is Sitting on a Geothermal Superpower
Most people still associate Alaska with oil pipelines and Arctic drilling. But beneath its volcanic belts lies something far more stable, cleaner, and potentially limitless: geothermal energy from active tectonic systems.
Mount Augustine, part of the Cook Inlet volcanic arc, is not just geologically active—it is a high-temperature energy engine continuously driven by Earth’s internal heat.
This is not theoretical potential. It is one of the most promising geothermal zones in North America.
If developed properly, it could deliver:
- Baseload electricity
- Industrial-grade heat
- Hydrogen and fuel production support
- District heating for cold-climate communities
Unlike wind or solar, geothermal energy in Alaska is not intermittent. It does not care about polar night, storms, or seasonal extremes. It runs continuously—day and night, winter and summer.
That alone makes it strategically priceless.
Why Geothermal Is the Real Backbone of the Alaska–POSCO Agreement
The MOU includes six ambitious projects:
- Mount Augustine Geothermal Energy Project
- Green methanol production
- Sustainable aviation fuel (SAF) refinery
- Rare earth mineral development (Bokan-Dotson Ridge)
- Port expansion at Port MacKenzie
- Knik Arm transportation infrastructure
At first glance, this looks like a diversified industrial strategy. But beneath the surface, there is a unifying energy logic:
👉 Geothermal energy can power and decarbonize nearly every other project in the agreement.
Green methanol? Needs heat and hydrogen pathways.
Sustainable aviation fuel? Energy-intensive refining.
Rare earth processing? High-temperature industrial demand.
Port infrastructure? Electrification and logistics energy demand.
Geothermal is the only source in the mix capable of delivering continuous, local, carbon-free thermal energy at scale.
Without it, many of these projects rely on imported fuels or costly energy imports.
With it, Alaska becomes an energy self-sufficient industrial hub.
Mount Augustine: A Volcanic Powerhouse Waiting to Be Tapped
Mount Augustine is not just another geothermal prospect. It is a volcanic island system, meaning it has:
- High heat flow
- Active magma movement
- Shallow geothermal gradients
- Strong hydrothermal circulation systems
This is the ideal geological environment for high-enthalpy geothermal energy production.
In geothermal terms, this is the “premium tier” resource class.
If drilling confirms commercial viability, Alaska could move beyond conventional binary geothermal systems into:
- High-temperature steam production
- Enhanced geothermal systems (EGS)
- Hybrid geothermal-industrial energy hubs
This could place Alaska in the same league as global geothermal leaders like Iceland—but with far larger landmass potential.
Why Geothermal Beats Every Other Energy Option in Alaska
Alaska is uniquely challenging when it comes to energy:
- Extreme cold increases heating demand
- Remote communities rely on expensive fuel imports
- Grid infrastructure is fragmented
- Logistics costs are among the highest in the United States
In this environment, geothermal energy has unmatched advantages:
1. Perfect for Heating-Dominated Economies
In cold climates, heating is not optional—it is essential. Geothermal directly replaces diesel and gas heating systems.
2. No Fuel Transport Needed
Once built, geothermal systems eliminate the need for continuous fuel delivery across harsh terrain.
3. Stable Baseload Power
Unlike wind and solar, geothermal provides uninterrupted energy supply regardless of weather.
4. Local Economic Value
Energy production remains within the region instead of flowing out as imported fuel payments.
5. Long Lifespan Infrastructure
Geothermal wells can operate for decades with proper reservoir management.
POSCO’s Role: Industrial Scale Meets Geothermal Reality
The involvement of signals something important: this is not a small experimental project.
POSCO brings:
- Global energy project financing
- Industrial-scale infrastructure development
- Expertise in large-scale resource integration
- Supply chain connectivity across Asia
Geothermal development is capital intensive, especially in early exploration phases. But once proven, it becomes one of the lowest-cost energy sources over time.
This partnership suggests a shift from exploration to industrial geothermal commercialization.
That is a major leap.
The Hidden Strategy: Geothermal as the Foundation of Critical Mineral Processing
One of the most overlooked elements of the Alaska MOU is its connection between geothermal energy and critical minerals development.
Rare earth processing at Bokan-Dotson Ridge requires:
- High-temperature chemical processing
- Continuous power supply
- Stable industrial heat inputs
These are exactly the conditions geothermal energy can provide.
This creates a powerful synergy:
👉 Geothermal energy enables mineral processing
👉 Mineral processing strengthens energy independence
👉 Energy independence supports national security supply chains
In other words, geothermal is not just an energy project—it is an industrial enabler for the entire critical minerals economy.
Green Methanol and SAF: Why Geothermal Heat Changes the Equation
Green fuels like methanol and sustainable aviation fuel (SAF) are energy-intensive to produce.
They require:
- Hydrogen production
- Carbon capture processes
- Catalytic chemical reactions
- Continuous thermal input
Most regions struggle to make these fuels economically viable because energy costs are too high or too carbon-intensive.
Geothermal changes this equation completely.
With stable heat and electricity, Alaska could:
- Produce green fuels locally
- Reduce dependency on imported aviation fuels
- Position itself as a clean fuel export hub
This is where geothermal moves from “energy source” to industrial transformation platform.
Why This Deal Matters Globally
This agreement is not just an Alaska story. It reflects a global shift in energy strategy:
1. Countries are moving beyond electricity-only renewables
Wind and solar alone cannot decarbonize industrial heat.
2. Geothermal is becoming strategic infrastructure
Not niche, not experimental—core energy infrastructure.
3. Energy and industrial policy are merging
Energy projects are now tied directly to minerals, transport, and fuel production.
4. Arctic and volcanic regions are being re-evaluated
Areas once considered remote are now viewed as energy assets.
Alaska sits at the center of this shift.
The Real Opportunity: A Geothermal Industrial Corridor
If fully realized, Alaska could develop a new kind of economic system:
- Geothermal power plants near volcanic zones
- Industrial hydrogen and fuel production clusters
- Rare earth processing hubs powered by local heat
- Electrified ports and logistics corridors
- Energy-exporting industrial zones
This is not just energy development.
It is the creation of a geothermal-powered industrial civilization in the Arctic region.
Challenges Still Ahead
Despite the excitement, geothermal development in Alaska faces real challenges:
Harsh geological conditions
Volcanic systems are powerful but complex and risky to drill.
High exploration costs
Early-stage geothermal drilling requires significant investment.
Infrastructure limitations
Remote terrain increases development complexity.
Technical uncertainty
Resource confirmation is never guaranteed until deep drilling is complete.
However, these challenges are not unique to Alaska—they are common in geothermal frontiers worldwide.
What matters is that the potential upside is enormous compared to the risk.
Conclusion: Alaska’s Energy Future May Come From Beneath Its Volcanoes
The State of Alaska–POSCO agreement represents more than a business partnership. It signals a strategic pivot toward integrated clean energy and industrial development.
But among all six projects, geothermal energy is the quiet force that holds everything together.
If Mount Augustine delivers on its geological promise, Alaska could transition from a fossil fuel-dependent economy to a geothermal-powered industrial hub with global export potential.
In a world racing toward decarbonization, the most powerful energy source may not be found in the sky or the wind.
It may be found deep beneath Alaska’s volcanic ground—steady, silent, and waiting.
Source: Gov Of Alaska
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