Djibouti Pays KenGen: A $1 Million Offer on a Five-Year-Old Geothermal Drilling Debt Djibouti has finally moved to pay part of what it owes Kenya Electricity Generating Company (KenGen) for drilling work done near Lake Assal. The amount is small next to KenGen's balance sheet. What it says about selling geothermal drilling services across Africa matters a lot more. KenGen's latest annual report says Djibouti's state geothermal agency, the Office Djiboutien de Développement de l'Énergie Géothermique (ODDEG), has offered a first instalment of about $1 million (Sh129 million) against outstanding invoices of $2.13 million (Sh276.03 million), according to Business Daily. "ODDEG has acknowledged the debt and has proposed an initial payment of $1 million as the first instalment towards settlement," KenGen said in the report. KenGen is Kenya's largest power producer, with about 54% of the market. The Kenyan government owns 70% of the company and the public holds t...
Tenerife Geothermal Drilling: TAQA and SGI Launch First Deep Geothermal Exploration Well for Spain’s Clean Energy Future
TAQA and SGI Begin Drilling Tenerife’s First Deep Geothermal Exploration Well: A Major Step for Spain’s Clean Energy Future
Image: TAQA equipments in the field
Tenerife crossed an important threshold in its energy transition. The island’s first deep geothermal exploration well, TSA-1, officially entered the drilling phase, marking a historic moment not only for the Canary Islands but for Spain’s wider renewable energy ambitions. For a region long seen as a strong candidate for geothermal development, this is the point where possibility turns into action.
The campaign is being carried out by Soluciones Geotérmicas Integradas, better known as SGI, a wholly owned subsidiary of TAQA, after the project received its critical “Ready-to-Spud” notification from Geotermia de Tenerife, the project owner. That signal may sound technical, but its meaning is simple: all planning, engineering, logistics, and permitting steps are complete, and the drill can finally go into the ground. In geothermal development, this is one of the most important milestones a project can reach.
For Tenerife, the significance goes beyond one well. TSA-1 could help determine whether the island has commercially viable deep geothermal resources capable of producing reliable electricity around the clock. If successful, the project could help reshape the island’s power system, reduce dependence on imported fuels, and strengthen the role of geothermal energy in Spain’s clean energy future.
Why Tenerife Matters
The Canary Islands have long been considered one of Europe’s most promising geothermal frontiers. Their volcanic geology creates the right conditions for underground heat to build up at accessible depths. Tenerife, the largest of the islands, sits on an active volcanic system shaped by Mount Teide and the broader volcanic architecture beneath the surface. That makes it an ideal location to test whether deep geothermal power can move from theory into reality.
Unlike solar and wind, geothermal energy does not depend on weather or time of day. Once a geothermal resource is confirmed and developed, it can generate electricity continuously, providing a dependable source of baseload power. That is especially valuable for island grids, where reliability, price stability, and energy independence are critical.
Tenerife and the wider Canary Islands still rely in part on imported fossil fuels to balance electricity demand. That creates exposure to fuel price swings, supply chain risk, and carbon emissions. Geothermal energy offers a different model: a local, indigenous, low-carbon resource that can help stabilize the grid while reducing environmental impact. If the TSA-1 well confirms favorable subsurface conditions, the island could take a major step toward a cleaner and more resilient energy system.
The Project Partners
One of the strongest features of the Tenerife geothermal campaign is the mix of partners behind it. This is not a project driven by a single company working in isolation. Instead, it is a collaboration between local institutions, scientific expertise, and international geothermal experience.
The project owner, Geotermia de Tenerife, brings together several key organizations: ITER, the Institute of Technology and Renewable Energies; INVOLCAN, the Volcanological Institute of the Canary Islands; Reykjavík Geothermal; and DISA. This combination is important because it blends local scientific understanding with international geothermal development knowledge.
SGI is responsible for drilling operations. As a Canary Islands-based geothermal company owned by TAQA, it plays the central role in executing the exploration phase and coordinating the technical service providers involved in the project. TAQA Geothermal also provides integrated project management support, including input from Marriott Drilling and TAQA Well Solutions. These companies bring specialized drilling engineering, well construction, and oilfield expertise that can be adapted to geothermal conditions.
This kind of partnership structure reflects a broader trend in geothermal development. Because the subsurface is uncertain and the technical demands are high, projects often require a deep bench of expertise. The Tenerife campaign brings that expertise together in one coordinated effort.
What TSA-1 Is Designed to Reveal
TSA-1 is not a production well. It is an exploration well, and that distinction matters. The purpose of an exploration well is not to immediately generate electricity, but to answer the most important question in geothermal development: is there enough usable heat underground to make a commercial project possible?
To answer that question, the well will need to provide data on several critical factors. These include reservoir temperature, rock permeability, fluid chemistry, reservoir pressure, and the overall sustainable production potential of the system. Each of these elements affects whether a geothermal field can support a future power plant.
High temperature alone is not enough. The reservoir must also allow fluid to move through fractured rock at a rate that makes energy production viable. If the rock is too tight, or if the fluid conditions are unsuitable, the project may not move forward. That is why exploration drilling carries such high risk, but also why it is so essential. Without drilling, there is no way to move from geological suspicion to engineering certainty.
The TSA-1 campaign represents the point at which all the theoretical work begins to be tested against reality. It is where geology, engineering, and investment meet the physical subsurface.
Why Exploration Drilling Is a Big Deal
Deep geothermal projects often require significant investment long before there is any certainty of success. Companies may spend millions on geophysical surveys, environmental studies, drilling preparations, and technical design before a single meter is drilled. That makes exploration one of the riskiest stages in the entire geothermal value chain.
The “Ready-to-Spud” notice is therefore a key milestone because it shows that the project has passed a major set of technical and regulatory checkpoints. Permitting, environmental compliance, logistics, engineering, and site preparation must all align before drilling can begin. Reaching this stage is a sign that the project has moved from planning into execution.
At the same time, the drilling itself remains a test. Once the drill bit enters the subsurface, assumptions made during earlier studies are either confirmed or challenged. That is the nature of geothermal exploration. It is part science, part risk management, and part long-term strategic investment.
Tenerife’s Volcanic Advantage
Tenerife’s geology is central to why this project matters. Volcanic islands are often ideal candidates for geothermal energy because magma located several kilometers below the surface heats surrounding groundwater. As water moves through fractured volcanic rocks, it absorbs heat and can become a powerful source of renewable energy.
Depending on the temperature found underground, different geothermal technologies may be possible. Binary power plants can operate with temperatures above about 150°C, while flash steam systems usually require temperatures in the 180°C to 220°C range or higher. In especially hot systems, even more efficient high-enthalpy developments may be possible.
One of the main goals of TSA-1 is to determine which of these scenarios, if any, exists beneath Tenerife. That information will shape whether the island can develop a geothermal power plant and what type of technology would be most appropriate. If the results are strong, Tenerife could become a flagship geothermal case for Southern Europe.
Why Geothermal Fits Island Grids
Islands face energy challenges that differ from those on the mainland. Demand changes throughout the day, while solar and wind generation depend on weather conditions. In many island systems, fossil-fuel generators still provide the balancing power needed to keep the grid stable when renewables fluctuate.
Geothermal energy changes that equation because it provides continuous baseload electricity. Once operating, it can generate power day and night, regardless of sunlight or wind. That makes it especially useful for small, isolated grids where reliability is essential and backup fuel is expensive.
For Tenerife, geothermal could help solve several problems at once. It could stabilize electricity prices, reduce fuel imports, lower greenhouse gas emissions, and allow higher penetration of intermittent renewables like solar and wind. In other words, geothermal is not just another energy source. It could become the backbone of a more flexible, secure, and cleaner island grid.
TAQA’s Growing Geothermal Role
TAQA’s involvement in Tenerife reflects a wider shift in how energy companies are approaching geothermal development. The company has increasingly expanded beyond conventional oilfield operations into renewable energy infrastructure, using decades of drilling and subsurface expertise to support geothermal projects.
That transition makes strategic sense. Many of the skills used in oil and gas exploration are directly relevant to geothermal development. Directional drilling, well integrity, cementing, completion engineering, and reservoir characterization all play important roles in geothermal wells as well. The technical environments differ, but the underlying disciplines are closely related.
As more energy companies move into geothermal, the sector benefits from this transfer of expertise. Drilling operations can become more efficient, project design can become more robust, and geothermal exploration can scale more quickly. Tenerife is now part of that broader industrial evolution.
The Technical Risks Ahead
Even with drilling underway, the project still faces important technical challenges. Volcanic geothermal systems can be difficult to drill because they often contain hard rock, fractured formations, and unpredictable downhole conditions. These factors can slow progress and increase costs.
High temperatures are another challenge. Equipment must be able to withstand extreme heat deep underground, and that requires careful design and specialized materials. Lost circulation is also a concern, especially in fractured volcanic rock where drilling fluids can disappear into surrounding formations. That can complicate operations and affect drilling efficiency.
Then there is reservoir uncertainty. A well may intersect hot rock without finding enough fluid flow to support commercial power generation. That is why temperature, permeability, pressure, and chemistry all need to be assessed together. Geothermal success depends on the system as a whole, not on heat alone.
Environmental Strengths of Geothermal
Despite the technical risks, geothermal energy has strong environmental advantages. It is one of the lowest-emission power sources available and typically requires far less land than solar or wind projects. It also has a relatively small visual footprint, which is important in sensitive or tourist-heavy regions like the Canary Islands.
Depending on the technology used, water consumption can also be relatively modest, especially when fluids are reinjected into the reservoir after use. Reinjection helps maintain pressure in the geothermal system and reduces environmental disturbance. That makes geothermal a particularly attractive option for places that want clean energy without extensive land use or major landscape disruption.
For Tenerife, these benefits are especially relevant. The island’s natural environment is one of its greatest assets, and any energy project must be compatible with environmental protection and long-term sustainability. Geothermal development offers a way to produce power locally while keeping the surface impact relatively low.
Spain’s Bigger Opportunity
Spain has made major progress in renewables through solar, wind, and hydropower, but geothermal electricity has remained limited despite the country’s volcanic potential. That means the Tenerife project is about more than one island. It is a test of whether Spain can expand its renewable mix into a resource that has so far been underused.
If TSA-1 is successful, the results could encourage more exploration, more private investment, and stronger policy support for geothermal development. It could also help unlock potential on other Canary Islands, where similar volcanic conditions may exist. In that sense, Tenerife is not only drilling for itself. It may be drilling for the future of Spanish geothermal power as a whole.
The implications are important for energy security too. Every additional domestic renewable resource reduces dependence on imported fuels and improves resilience against market shocks. Geothermal could therefore become a strategic asset in Spain’s broader clean energy transition.
What Happens After Drilling
The drilling campaign is only the first stage. Once the well reaches target depth, the team will carry out a series of tests to evaluate the reservoir. These will likely include temperature logging, pressure measurements, flow testing, fluid sampling, and reservoir analysis.
Those results will determine whether the site can support a future appraisal program and, eventually, a geothermal power plant. If the data is encouraging, the project could move into a more advanced phase of development. If not, the well will still provide valuable scientific information that can guide future exploration elsewhere on the island.
That is part of what makes geothermal exploration so important. Even when a well does not immediately lead to generation, it still improves understanding of the subsurface. In a frontier geothermal region, that knowledge is often one of the most valuable outcomes.
A Milestone with Global Relevance
Tenerife’s TSA-1 well is more than a local project. It is part of a global movement to expand geothermal energy as a core part of the clean energy mix. Around the world, governments and developers are realizing that geothermal can complement solar and wind by providing stable, continuous power.
The appeal is clear. Geothermal does not need sunshine, wind, or large fuel deliveries. It works continuously, with very low operational emissions, and can support power systems that need reliability as much as flexibility. That makes it especially relevant in volcanic regions, island grids, and countries looking to diversify their renewable portfolios.
For Spain, and especially for Tenerife, this drilling campaign represents a chance to prove what is possible. If the geology cooperates, the island could become a landmark geothermal success story. If that happens, TSA-1 will be remembered not just as the first deep geothermal exploration well in Tenerife, but as the point where Spain’s volcanic energy future began to take shape.
Source: TAQA
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