PAA - Final Report

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Powering African Agriculture

(PAA)

FINAL REPORT

September 25, 2012 – September 30, 2015

Submitted by

Land O’Lakes International Development

Through

Volunteers for Economic Growth Alliance (VEGA)

October 2015

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Table of Contents 1.0 INTRODUCTION .......................................................................................................................... 4

2.0 PROJECT GOAL AND OBJECTIVES ......................................................................................... 4

3.0 ACTIVITY COMPONENTS ......................................................................................................... 5

3.1 Component 1: Development of Geothermal DU Guidebook ....................................................................... 5

3.2 Component 2: Pre-feasibility Studies ........................................................................................................... 5

3.3 Component 3: DU Pilot Project Development ............................................................................................. 5

3.4 Component 4: Geothermal Mega-Dairy ....................................................................................................... 5

3.5 Component 5: Capacity Building of GDC ...................................................................................................... 5

3.6 Component 6: Support for Energy Grant Challenge (EGC) grantees ........................................................... 5

4.0 ACTIVITY IMPLEMENTATION FOR THE LIFE OF THE PROJECT ................................ 6

4.1 Introduction ................................................................................................................................................. 6

4.2 Development of the DU Guidebook ............................................................................................................. 6

4.3 Demand-centered commercial application of geothermal energy .............................................................. 6

4.3.1 Introduction ................................................................................................................................................. 6

4.3.2 Pre-feasibility Studies ................................................................................................................................... 6

4.3.2.1 Back ground ............................................................................................................................................. 6

4.3.2.2 Greenhouse pre-feasibility study ............................................................................................................. 7

4.3.2.3 Aquaculture pre-feasibility study............................................................................................................. 8

4.3.2.4 Crop drying pre-feasibility study .............................................................................................................. 8

4.3.2.5 Dairy Processing pre-feasibility study ...................................................................................................... 8

4.3.2.6 Abattoir pre-feasibility study ................................................................................................................... 8

4.3.2.7 Aloe Vera processing ............................................................................................................................... 9

4.3.2.8 Full feasibility study on dairy processing ................................................................................................. 9

4.3.3 Direct-Use Pilot Projects ............................................................................................................................ 10

4.3.3.1 Introduction ........................................................................................................................................... 10

4.3.3.2 Laundromat Pilot Project ...................................................................................................................... 10

4.3.3.4 Greenhouse Pilot Project ....................................................................................................................... 10

4.3.3.5 Aquaculture Pilot Project ....................................................................................................................... 11

4.3.3.6 Small Dairy Containerized Pilot Project ................................................................................................. 11

4.4 Geothermal Mega-Dairy Project ................................................................................................................ 12

4.5 Capacity Building of GDC ............................................................................................................................ 13

4.6 Technical Assistance to Energy Grant Challenge Recipient SunDazer Refrigeration ................................. 13

4.7 Direct Use Pilot Commissioning and Launch .............................................................................................. 13

4.7.1 Introduction ............................................................................................................................................... 13

4.7.2 Direct -Use Pilot Commissioning ................................................................................................................ 13

4.7.3 Direct-Use Pilot Launch .............................................................................................................................. 17

4.7.3 Lessons learned and next steps ................................................................................................................. 19

4.7.3.1 Communications .................................................................................................................................... 19

4.7.3.2 Meeting Partner Requirements .................................................................................................................. 19

4.7.3.3 Management ............................................................................................................................................... 20

4.7.4 Next steps................................................................................................................................................... 20

4.7.4.1 Introduction ................................................................................................................................................ 20

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4.7.4.2 Engagement ................................................................................................................................................ 20

4.7.4.3 Future DU Project Support at Scale ............................................................................................................. 20

4.7.4.4 Tea Processing Feasibility Study .................................................................................................................. 20

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1.0 Introduction

The Powering African Agriculture (PAA) project was funded by the United States Agency for

International Development (USAID) through an Associate Award to the Volunteers for Economic Growth

Alliance (VEGA). VEGA issued a sub-award to Land O’Lakes International Development to implement

the project as the lead organization, with Winrock International as the associate organization. In

partnership with the Government of Kenya’s Geothermal Development Company (GDC), whose primary

role is to explore and develop geothermal resources in Kenya, PAA launched the two-year $4.2 million

project with an end date of September 24, 2014. On August 7, 2014 USAID modified the Associate

Award to provide a no-cost extension with a new end date of March 23, 2015. Due to procurement delays

associated with the GDC, USAID activated a second no-cost extension in March 2015 to make a final end

date of September 30, 2015. These modifications enabled PAA to align the project activities with the

implementation timeline of the GDC.

PAA provided technical assistance and training to the GDC in order to help the GDC realize its objective of

promoting geothermal direct-use (DU) applications in Kenya by first undertaking a number of feasibility

studies to determine the potential opportunities of geothermal DU to support agricultural productivity and

secondly launching pilot projects which demonstrate the viability of using geothermal energy directly to power

agricultural and other activities.

The PAA project conducted pre-feasibility studies that analyzed the potential for geothermal DU for agriculture-

related processes. The PAA project contributed to USAID’s Feed the Future (FTF), Global Climate Change,

and Power Africa (GCC) objectives by helping to identify, commercialize and bring to scale an innovative

clean energy solution for cutting-edge agricultural applications in sub-Saharan Africa. This end of project

report covers the entire project period of September 25, 2012 through September 30, 2015.

2.0 Project Goal and Objectives

The original objectives of PAA were designed to support USAID’s FTF and GCC initiatives to

sustainably reduce poverty and hunger throughout Sub-Saharan Africa (SSA). In addition, PAA

supported Power Africa (PA), a USAID initiative, launched after the start of PAA, to increase the number

of people with access to power in SSA. PAA’s role was to cultivate and support the commercialization of

clean energy solutions to improve agricultural productivity. The project was designed to be highly

adoptable to allow for significant amounts of flexibility and customization. As such, in consultation with

the GDC and USAID the project objectives were refined to include the following:

1. Completing a Geothermal Direct Use guidebook to advise the GDC in how to conduct rapid

appraisals and pre-feasibility analysis for the potential application of geothermal energy directly

to agricultural and other activities;

2. Support the GDC in undertaking a number of pre-feasibility and feasibility studies on the

potential application of geothermal DU;

3. Support the GDC in the concept design and development of selected pilots to showcase various

applications of geothermal DU;

4. Provide capacity building of the GDC to increase its institutional capacity of developing and

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managing DU infrastructure, processes and programs;

5. Provide Technical Assistance and training for Energy Grant Challenge grant recipients.

In order to achieve these objectives, PAA developed six (6) activity components as detailed below.

3.0 Activity Components

3.1 Component 1: Development of Geothermal DU Guidebook

A Geothermal DU guidebook was needed to provide criteria by which geothermal institutions, like the

GDC or potential investors, can analyze and rank potential applications of DU based on the importance

attributed to each of the select criteria.

3.2 Component 2: Pre-feasibility Studies

Pre-feasibility studies were required as a way of exploring opportunities for DU application as a first step

in building the platform for the GDC to venture into the DU arena.

3.3 Component 3: DU Pilot Project Development

To move the DU options and possibilities to the next level of “proof of concept”, the project assisted the

GDC design pilot concepts, then developed and implemented the pilots to demonstrate the opportunities

to potential investors.

3.4 Component 4: Geothermal Mega-Dairy

Based on the results of the pre-feasibility study for the geothermal powered Mega Dairy in Kenya

completed in June 2013, the GDC considered working with the private sector to implement a full

feasibility study for this project.

3.5 Component 5: Capacity Building of GDC

A major objective of this project was for PAA experts and managers to mentor GDC DU staff to take the

lead in the implementation of various DU activities. This was to include training in the operations and

maintenance of the pilot projects as they became operational.

3.6 Component 6: Support for Energy Grant Challenge (EGC) grantees

It was envisaged that PAA would conduct grantee assessments and develop tailored grantee support

programs including training and technical assistance to commercialize and scale clean energy applications

in agriculture.

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4.0 Activity implementation for the life of the project

4.1 Introduction

Through meticulous development and refinement of project work plan over the life of the project, PAA

was able to implement all the planned activities, although, as discussed below, changes were made to

some of the components. The following sections provide detailed implementation progress of each of the

components highlighted above.

4.2 Development of the DU Guidebook

PAA drafted a SOW for the development of the DU guidebook and sought inputs from both USAID and

the GDC. Although the process started in December 2012, the SOW was finalized and approved in March

2013. PAA then deployed two energy experts from Winrock International, Dr. John Lund and Dr. Robert

Foster, to develop the DU guidebook. The experts spent six months doing research and analysis,

including field site visits and work with the GDC to document, analyze

and suggest potential DU applications for geothermal energy in

agricultural and complementary rural-based activities. This process

facilitated the design of the DU guidebook which was drafted in

November 2013. Working in close collaboration with the USAID and the

GDC, PAA contracted two other geothermal experts, Dr. Gordon

Bloomquist and Dr. Willis Ambusso to review, revise and refine the

guidebook. PAA subsequently contracted the Africa Center for

Development Communication to proofread and professionally edit the

document, then submitted to Ladash Designs for typesetting, graphics

and printing. The final branded guidebook was submitted to USAID and

the GDC in in March 2014.

4.3 Demand-centered commercial application of geothermal energy

4.3.1 Introduction

The main goal of PAA was to support the GDC explore innovative options and opportunities for

supporting demand-centered commercial direct application of geothermal energy. To achieve this goal,

PAA developed two strategies. First, to support GDC undertake several pre-feasibility studies with a

special focus on the natural resources and livelihoods of the communities within areas of geothermal

potential; and second, to design, develop and implement several pilot projects as proof of geothermal DU

concept.

4.3.2 Pre-feasibility Studies

4.3.2.1 Back ground

The key objective of the pre-feasibility studies was to identify cost-effective opportunities for

commercialization and sustainable adoption of geothermal DU. Targeted agricultural value chains had

true market demand and a high potential for commercialization and sustainable adoption. GDC had an

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additional objective of attracting rural investment into geothermal energy to create local employment and

provide an improved market for locally produced raw materials.

Consequently, PAA commissioned experts who undertook rapid appraisal of several sectors with the

potential to benefit from geothermal DU applications, including:

1. Crop-drying at the National Cereal and Produce Board (NCPB) facility to understand potential

geothermal DU opportunities for crop drying and storage applications. The team appraised the

Lesiolo portable grain handler and maize storage silos.

2. Milk processing facilities in and surrounding Nakuru. The team toured Kenya Cooperative

Creameries, Brookside Dairy, and Buzeki Dairy.

3. Various animal processing systems surrounding Lake Baringo and Lake Bogoria. Evaluations

included: an abandoned fish processing plant that had potential to be rehabilitated and retrofitted

with geothermal system; options for processing animal meat and leather products; refrigeration

and cold storage for variety of uses; honey processing; fish farming; and poultry hatchery among

other opportunities.

4. Fruit and vegetable processing at the Njoro Canning Factory. The team appraised the potential

geothermal DU applicability to vegetable and fruit dehydration, cold storage and canning.

5. Tea processing at the Kapkatet Tea Factory in Kericho.

To understand the policy environment for the dairy and livestock sectors, the team also met with the

Kenya Dairy Board, an institution that works to form policy and supervises the dairy sector, and the

Ministry of Livestock Development. Other key stakeholder discussions involved several government

ministries and departments, universities and key community leaders.

This extensive work led PAA to short list and prioritize the following areas for more thorough pre-

feasibility studies.

1. Greenhouses

2. Aquaculture

3. Crop drying

4. Dairy processing

5. Abattoir processing

6. Aloe Vera processing

4.3.2.2 Greenhouse pre-feasibility study

The objective of the greenhouse pre-feasibility study was to document the potential for expanding the

existing greenhouse floriculture and vegetable industry by utilizing DU geothermal heating. In practice,

geothermally heated water can bring a greenhouse temperature to an optimal 550C during periods of high

humidity. This allows the greenhouse dew point to be easily controlled by drying the air inside a

greenhouse. Controlling the dew point minimizes the incidence and spread of disease, leading to fewer

stems rejected as waste and better harvesting yields. Thus, less herbicide applications are required,

resulting in cost savings, less worker exposure to chemicals, and environmental benefits while producing

higher quality produce. The pre-feasibility study concluded that heating with DU geothermal can improve

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production by 15-25%.

4.3.2.3 Aquaculture pre-feasibility study

The aquaculture pre-feasibility study investigated the potential of geothermal-heated fish ponds to

maintain the fish water temperature at an optimum level of 300 C. The main benefit is the ability to

maintain constant, optimal temperatures for fish growth, leading to the potential of harvesting fish twice a

year instead of once, as is the current practice in Kenya. Other benefits include: the ability to produce

fish on a year-round basis with proper scheduling; the ability to locate geothermally heated aquaculture

ponds close to population centers (markets), reducing on transportation costs; the ability to use

geothermal heat for sterilization of equipment, culture systems and water supply; and the ability to use

geothermal heat to produce ice for fish cold storage.

4.3.2.4 Crop drying pre-feasibility study

The crop-drying pre-feasibility study was carried out to identify opportunities for crop-drying that would

increase product shelf life, create increased income opportunities through value addition, and provide

more efficient and environmentally friendly processes, and cut down on processing costs. At the

smallholder farmer level in Kenya, most crop-drying is done using the sun - only at the industrial level are

other drying systems used. For example, massive amounts of woodlots are used in tea processing while

drying of grains and pyrethrum uses heavy fuel oils (HFO) boilers which are expensive and pollutes the

environment.

4.3.2.5 Dairy Processing pre-feasibility study

The dairy processing pre-feasibility study evaluated the technical, financial and logistical viability of a

large (500,000 liters of milk per day) geothermal-powered dairy processing plant producing a range of

products. The study concluded that geothermal heat could be used for a range of process heat and cooling

needs common to dairies with substantial savings in energy costs as well as providing opportunities for

cascading the use of geothermal energy to other applications. The cases considered for cascade after the

dairy processing were based on energy needs, temperature requirements and geothermal water flow rates.

This scenario has the potential to improve the internal rate of return. For example, the geothermal flow

required for the 500,000 liters per day plant is 685 liters per second equivalent to 2,466 tones per hour and

allowing for losses (e.g. through evaporation in cooling tower) this would still make available 167,400

MJ (Mega Joules). The study also provided options for the location of the dairy processing facility

considering the availability of milk and geothermal resource and alternatives of locating the facility at an

industrial park near Menengai or Nakuru.

4.3.2.6 Abattoir pre-feasibility study

The abattoir pre-feasibility study evaluated abattoir energy demands for lighting, water heating,

refrigeration and equipment operations. A range of meat products and bi-products that an abattoir can

produce were considered. The study established substantial cost savings when geothermal energy replaces

conventional energy. If the abattoir is located in close proximity to one or more power plants, waste heat

from the power plants could be cascaded down to the abattoir to further reduce the energy costs.

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Collection of pre-feasibility studies

In order to complete the abattoir pre-feasibility study, PAA commissioned two separate assignments to

dig deep into two key sectors that are critical in the completion of the pre-feasibility study. These were

precursor to the actual pre-feasibility study and included a livestock survey and potential for DU of

geothermal energy in abattoir and livestock products processing and secondly, a study on the potential use

of geothermal resources in an abattoir facility in Kenya. Once these were completed, the actual pre-

feasibility study was commissioned and completed successfully. It looked at the entire spectrum of energy

demands for lighting, heating of water, refrigeration, operation of process and service equipment as well

as the range of meat products and by products that the abattoir could produce.

4.3.2.7 Aloe Vera processing

A rapid assessment on the DU of geothermal to process aloe was conducted, and it was found that the

economic benefits were very low. As such there was no need to pursue the completion of this pre-

feasibility study.

4.3.2.8 Full feasibility study on dairy processing

The dairy pre-feasibility study discussed above was large scale and one that would need an external

investor to implement. To get more information and possibly set up a geothermal-powered small dairy

processing plant, PAA undertook a full feasibility study for a small dairy pilot project in Menengai. The

study evaluates the heat source, provides step-by-step processes needed to structure the project, and

proposes a support mechanism to implement the demonstration unit. All these study reports can be found

on the Land O’Lakes website www.idd.landolakes.com PAA contracted experts in respective fields to

lead the prefeasibility study process but these experts worked hand-in-hand with the GDC staff to build

their capacity in the process. This included the development of the required scopes of work, the

contracting process and actual field work for data collection, analysis and report writing. During the

launch of the geothermal DU pilot, GDC displayed these reports and gave out some to selected potential

investors.

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GDC staff working on the young tomato seedlings in the geothermal Heated Greenhouse pilot project

Geothermal powered laundromat pilot project

4.3.3 Direct-Use Pilot Projects

4.3.3.1 Introduction

During initial planning in late 2012 to early 2013, PAA was to assist the GDC implement a cascaded pilot

project to demonstrate the use of geothermal energy for greenhouse growing and aquaculture. The

geothermal energy to support these pilots was to come from the GDC power plants that were under

construction. PAA assisted the GDC in completing the design concepts, including the preparation of all

respective bills of quantities, initial ground pegging and pond excavations. However, with the extended

delays in getting the power plants operational, GDC put work on hold at this site and instead focused on

setting up pilot projects at the MW03 site. PAA therefore worked with the GDC to develop four new pilot

design concepts for MW03, including a laundromat, a containerized dairy unit, a mini greenhouse and a

mini aquaculture pilot – all to share a common heat exchanger.

4.3.3.2 Laundromat Pilot Project

When GDC embarked on developing geothermal resources at Menengai, they set up a camp on site and

procured containerized offices and residential housing that

included laundromat equipment. PAA used one of these

containerized laundromat units as the basis of the design

concept, moving one to the MW03 platform. The unit was

retrofitted to utilize geothermal-heated water by replacing

the heated coil. The specially-designed coil uses

geothermal-heated water at 800 C to dry the cloths.

Plumbing and electrical work were subsequently completed.

PAA also trained the laundromat operators on its use,

maintenance and operating procedures.

4.3.3.4 Greenhouse Pilot Project

The greenhouse pilot project was designed to utilize the MW03 heat exchanger to heat water at 500 C to

control the greenhouse’s humidity at night, in the early morning and during very wet seasons when

humidity inside the greenhouse rises above 85%. A constant optimum temperature inside the greenhouse

results in enhanced growth-rate of plants, improved plant quality,

and reduced use of fungicides. The pilot was set up as a cascade

with aquaculture so that nutrient-rich water waste from the fish

ponds drained to the greenhouse to reduce fertilizer costs.

The greenhouse system was also designed with a fertigation and

heating systems. The fertigation system is used to control the water

electrical conductivity and PH levels. It also feeds fertilizer to

hydroponic troughs where the tomatoes are planted through a drip

line system.

PAA also facilitated a network between the GDC with the Kenya

Agricultural and Livestock Research Organization who provided the required agronomic training to the GDC

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A GDC staff working at the geothermal heated aquaculture pilot project

team managing the pilot. Once the system was set up, PAA assisted the GDC with test runs, undertaking the

pilot commissioning and executing the pilot launch.

4.3.3.5 Aquaculture Pilot Project

Designed to cascade with the greenhouse, the aquaculture pilot project consists of two square fish tanks of

identical size and water volume (approximately 42m3 and 1 meter depth). The fish tanks are housed under

a greenhouse tunnel with screened sidewalls, which allow air circulation, but restrict exposure of the fish

to predators. Both tanks are heated to 290C by connection to the MW03 heat. Water that has passed

through the fish tanks is filtered and used to irrigate plants in the heated mini-greenhouse. The water is

then filtered and recirculated into the fish ponds. When the water is in excess, it exits the system through

the drain line.

The aquatic ponds are heated to and maintained at 290C for

optimal fish metabolism that enhances fish growth. For tilapia

like those used in the pilot project, a constant temperature

decreases the amount of time it takes to reach maturity from 12

to 7 months or less, which can result in increased profitability

of up to 40%.

The pilot was designed to include an aeration system in the

form of small regenerative blower to push compressed air

through diffuser tubing placed along the bottom of each fish

tank to provide oxygen to the fish.

4.3.3.6 Small Dairy Containerized Pilot Project

This dairy processing pilot was designed to process milk using geothermal heat instead of convectional

electricity. The geothermal-heated water at 800 C is delivered from MW03 to a 150 liter batch pasteurizer,

where milk is pasteurized for 30 minutes. Tap water is then used to cool the milk from temperatures of >

700 C to about 400C. A refrigeration unit/ice bank produces cold water at < 40C which is used to cool the

milk further before storage and distribution.

The small dairy containerized unit was fabricated, delivered and commissioned by a Kenyan dairy

equipment company, Associated Steel Limited. During the commissioning, Frazer Moffat, a dairy

equipment expert contracted under the PAA, worked with the GDC team on operationalizing the

equipment and training the staff. Moffat also worked with the GDC to develop standard operating

procedures for the equipment.

The layout design of the unit is shown by the schematic diagram below.

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The GDC is sourcing the raw milk from a

smallholder farmer cooperative that is in close

proximity to the pilot site. This provides a ready

and steady market for the farmers who have a lot of

constraints marketing their milk with very little

returns.

Through the implementation of the pilot, GDC

personnel were trained on milk reception and

processing as well as management and maintenance

of the dairy processing equipment.

4.4 Geothermal Mega-Dairy Project

Based on the results of the pre-feasibility study for the Geothermal-Powered Dairy Processing in Kenya,

as described under 4.3.2.5 above, the GDC was able to initiate a process of moving the initiative to the

next level of socializing the idea internally as well as to attract private investment to implement the

processing plant. To this end, the GDC developed a concept note and requested PAA to review it. PAA

assigned two of its dairy experts to review and assist the GDC in revising the concept, which considered

the establishment of an industrial park within the vicinity of Menengai geothermal field. The concept also

considered the options for the GDC to own the land where the proposed industrial park would be located,

with the idea of leasing the land and selling energy to potential private sector investors.

The GDC directly contracted two PAA dairy experts in early 2015 to develop an Expression of Interest

(IOI) (a public notice for the potential investors) and a detailed Request for Proposals (RFP), against

which qualified potential investors would be invited to conduct their own full feasibility study. This was a

clear indication that the GDC was committed to commercializing the DU applications.

The Dairy pasteurization unit

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4.5 Capacity Building of GDC

Improving the technical capacity of the GDC was an integral component of PAA. There were two modes

of capacity building: 1) Study tour which included short-term training for staff at the Geo-Heat Centre in

Oregon and 2) Expert mentoring. The study tour included site visits to see DU facilities first-hand

including the Oregon Institute of Technology. The mentoring program entailed pairing experts with GDC

staff during the development of pre-feasibility and feasibility studies, procurement of geo-thermal

equipment, and assessment and design of pilot sites. Each mode of capacity building was highly rated by

GDC staff and served as a foundation for future GDC DU work

One major outcome of the GDC’s enhanced capacity was their moving forward with the Dairy initiative,

having contracted two dairy experts (outside the PAA) to help prepare requests for expression of interests

which would be advertised and as discussed under 4.4 above. It is expected that a private investor will

work with the GDC to implement the dairy processing factory.

However, the GDC is lacking a clear strategy on next steps. First, they need to agree upon what kinds of

agreements they can enter with interested private companies. Second, they need a strategic plan for

facilitating the development of a green field to attract investors. Beyond PAA, the GDC is expected to

develop a clear business plan on DU policy and processes.

4.6 Technical Assistance to Energy Grant Challenge Recipient SunDazer Refrigeration

Per the RFA and subsequent awarding of the PAA program, Land O’Lakes anticipated that it would

provide targeted technical assistance to support Energy Grant Challenge (EGC) recipients. PAA

supported EGC recipient SunDanzer Refrigeration with Winrock International, a current partner who was

piloting an effort to develop solar refrigerated milk chillers for dairy producers in Kenya. Subsequently,

leveraging Land O’Lakes’ extensive dairy experience in Kenya, PAA collaborated with SunDanzer to

refine its prototype, better understand the Kenyan dairy value chain, and navigate solutions to challenges

of bringing this product to market through producer groups and cooperatives.

This work plan was later dropped by PAA under advisement by USAID. No further inputs were made by

PAA beyond the initial brainstorming and formulation of the SunDanzer approach.

4.7 Direct Use Pilot Commissioning and Launch

4.7.1 Introduction

To facilitate the planning and execution of the DU pilot launch, PAA set up a launch planning committee

including representatives from USAID, GDC, Land O’Lakes and the Winrock International. This

committee was responsible for planning the final launch event and approving all of the communication

materials. The inaugural meeting of this committee was held on December 15, 2014 with subsequent

meetings held on a monthly basis thereafter. The initial launch date was June 2015, but later rescheduled

for August 28, 2015 to allow completion of the pilot set up.

4.7.2 Direct -Use Pilot Commissioning

In order to complete the construction and installation of various DU pilot components, PAA

commissioned its experts to spend the week of July 27-31 working with GDC. All of the elements of the

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pilot system were successfully commissioned from the heat exchanger through the four pilot projects. The

dairy containerized unit however required more time to commission and the dairy equipment expert

extended his stay with one of the energy experts, working with the GDC through Tuesday August 4th

when the unit was successfully commissioned.

Menengai Well 3 (MW-03) direct use

geothermal site

Below is summary of activities completed during the commissioning of the pilot projects.

Energy source

The geothermal source is from the dedicated MW03, but since the brine

comes out in a 6 inch pipe, a T is made to extract just enough brine for

the pilots

GDC geothermal Well #3 at Menengai Caldera with silencers in the background.

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Heating System

The heat exchanger is a spiral coil in a bath with the geothermal fluid flowing

and transferring heat into the fresh water flowing through the spiral coil. The

overflow of geothermal fluid from the bath flows into the drain pond and the

heated fresh water is piped to the respective pilot projects. The heat

exchanger was successfully tested for the first time and functional heating all

of the four DU units successfully.

Aquaculture Project

Installation of all the hot and cold water piping was

completed. The Regenerative Blower (air supply) for

aeration had been wired incorrectly for 110 V AC and

was re-wired to 220V AC and functioned properly. The

fish were stocked, 500 fry per pond although they were

undersized at only 60% of requested size (10 g). The

geothermal heating system was turned on and

functional. The drain pond was also made operational,

but the filter remained to be made functional.

Containerized Dairy Project

The CDU required the most work and the PAA expert had to

stay on a few extra days. The compressor for the ice bank

had been undersized by the vendor at ¼ HP and was

replaced with a 1 HP compressor. Installation of all the hot

and cold water piping was completed. The 150 liter

pasteurization unit was successfully heated to 67°C with the

geothermal heat, adequate for pasteurization after 30 min.

Milk was successfully pasteurized.

Geothermal coil heat exchanger at MS03 for DU projects.

Guests admiring the Geothermal heated aquaculture ponds at DU pilot: the first geothermal heated aquaculture ponds in Kenya

Menengai CDU with Pasteurizer in foreground and ice bank in the back

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Greenhouse Project

Installation of all the hot and cold water piping was

completed. Tomatoes had been planted by GDC in the

greenhouse. Traps were recommended by a horticulture

consultant from Kenya Agricultural and Livestock

Research Organization (KARLO) who was introduced to

the GDC by PAA. The greenhouse can use either fresh

water, fish pond water or a combination of both from the

5 cubic meter raised tank which gravity feeds the

fertigation day tanks where the EC and PH are

controlled.

The fertigation water is then pumped through a drip line system over the hydroponic troughs where the

tomatoes are planted in a pumice/cocus mixture. Any excess water not taken up by the plants is drained from

the troughs to the drain pond. The greenhouse is heated at night by mixing cold water with geothermally

heated water to achieve 550C which is pumped around pipes above the troughs so as to raise the temperature in

the greenhouse sufficiently to keep the relative humidity to below 85% and thereby prevent fungal diseases.

The commissioning of the pilot was successful.

Containerized Laundromat Project

The laundromat is supplied with cold water through the

gravity fed system and geothermally heated water from

the heat exchanger. Inside the container there are

pressure controlled pumps for the hot and cold water

respectively which supply water to the washing

machine and the sink unit, the temperature being

controlled manually through valves and taps. The drier

has hot water pumped through a fan/coil unit which

provides hot air for the drier tumbler chamber.

The hot water exiting the fan/coil unit is recycled through a closed loop back to the HX or alternatively can be

cascaded down to the fish ponds in the aquaculture unit. Installation of all the hot and cold water piping was

completed. The dryer was successfully operated with Dale Merrick’s, PAA consultant, hot water coil on

geothermal at 57°C. The electric resistance heating coils were removed. GDC decided to remove one

dryer and one washer from the container to allow more space for work and visitors.

GDC staff working at the Geothermal heated greenhouse

Geothermal heated laundromat at MW-03

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4.7.3 Direct-Use Pilot Launch

After three successful years of collaboration with the GDC, on August 28, 2015, PAA launched the four

DU geothermal projects at the Menengai Geothermal Field in Nakuru.

A pre-launch media workshop was held in Nakuru on August 27 to host journalists and potential

investors. This event included a tour of the four pilot projects, followed by a plenary session with the

geothermal experts for questions and answers. Facilitated by the GDC’s Dr. Peter Omenda and Paul

Ngugi, the plenary session was kicked off with a presentation from the GDC with a strategic plan for

geothermal in Kenya. Additional presentation topics included global geothermal operations by Dr. John

Lund, DU application in dairy processing by Brian Dugdill, and DU application for greenhouse and

abattoir processing by Bruce Knight. A total of 30 journalists from across the major media houses in

Kenya attended. Several investors from the Nakuru region attended as well, including the chairman of the

Kenya Chamber of Commerce.

The main launch event was hosted by the GDC at the Menengai Geothermal Field, drawing in nearly 300

guests, including members of the Kenyan business community, county and national government

representatives, USAID representatives, members of the media, and staff from the various PAA partners.

Each guest received an event packet at the registration booth, including an event brochure and

informational materials on the GDC and implementing partners. After being received at registration,

guests took staggered tours around the pilot projects. GDC staff and one geothermal expert were assigned

to each of the pilot projects to brief the tour groups and facilitate Q&A.

Upon arrival of the Chief Guest, the Principal Secretary of the Ministry of Energy and Petroleum, guests

were seated for speeches. During his speech, the Principle Secretary commented on the Government of

Kenya’s commitment to the future of geothermal: “The next step is bringing these models to scale to take

advantage of our renewable natural resources.”

John Garrison, USAID PAA Agreement Officer Representative, was very pleased with the event and how

the project had delivered on its objectives. He stated his agreement with the Governor and GDC that a

working group meet on a regular basis to involve local authorities, the university, GDC and local private

sector representatives to discuss how to take the DU opportunities forward.

Other speakers included the Nakuru Governor, a member of the Nakuru Parliament, the GDC Chairman,

the PAA USAID representative, VEGA President and Land O’Lakes Vice President.

Following the speeches, the Principle Secretary officially launched the pilot projects with a ribbon cutting

and unveiling of an honorary plaque. This was followed by a vote of thanks and lunch provided by the

GDC.

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The Chief Guest and Principal Secretary, Eng. Joseph Njoroge, cutting the ribbon with the Nakuru Governor looking on

Chief of Party Tim Nzioka poses next to milk that was freshly processed using DU geothermal power

Plaque unveiled during the launch

GDC staff giving guests tours of the pilot projects. The aquaculture pond site is featured here.

Part of the photo session after cutting of the ribbon. From left is Bruce Knight (energy expert), Mike Deal (VEGA CEO), Martha Mburu (DU Manager GDC), John Lund (energy expert), John Garrison (USAID), Gershom Otachi (GDC Board Chair), Eng. Joseph Njoroge (The Principal Secretary and Chief Guest), H.E. Kinuthia Mbugua (Nakuru Governor), John Halverson (Land O’Lakes Vice President), William Madara (USAID) and Timothy Nzioka (PAA Chief of Party)

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4.7.3 Lessons learned and next steps

4.7.3.1 Communications

1. The PAA project involved no less than five different organizations including two US government

agencies, two US consortia of renown agricultural and energy experts, and the local partner -

GDC. Ensuring that these entities with different specializations worked harmoniously and

effectively was a major challenge of the program and required constant and ongoing

communication among all stakeholders. Further the program was conducted when the primary

partner, GDC, was in the early drilling phase of the Menengai geothermal field, a development

phase that takes an average of five (5) years to complete. Thus the three-year period initially set

out for the PAA program, later cut to two and then extended back to three, has been a relatively

short time compared to the long development timeframes required for geothermal energy

development. Setting realistic project goals and communicating those goals with all the

stakeholders is important. It is also important to form a working group or committee that reviews

progress being made towards the goal on a regular basis and revise goals as needed.

2. PAA evolved over time with the role of the GDC becoming a primary partner more evident in

years two and three of the program. However, while PAA was a partnership between USAID and

GDC, GDC was under the assumption that the implementation of PAA was the responsibility of

USAID. GDC was expecting USAID to direct the program and it would benefit through learning.

As a result of this misunderstanding, most GDC officers were unaware that they had to approve

PAA actions and this contributed to approval delays. At the start of PAA, a kick-off meeting with

key stakeholders and participants would have been useful to clearly define each party’s role.

3. The initial PAA scope of work included not only geothermal work with the GDC, but was also

designed to expand renewable energy technologies and activities to other African countries.

However, the first year PAA work plan was never formally reviewed or circulated leading to

misunderstandings about the purpose of the program among key stakeholders. During its second

year, PAA evolved towards working exclusively with GDC and the scope of work was refined.

While it is natural for a program to evolve over time, the lack of a clear understanding about the

purpose of the program at the beginning lead to misunderstandings among the program

stakeholders and ultimately, led to program delays.

4.7.3.2 Meeting Partner Requirements

The GDC required specific DU studies that supported their priorities to help impoverished communities.

Due to this requirement, some of the initial field surveys and studies undertaken by PAA covered a much

wider spectrum of potential DU users. Some of these potential DU users could not immediately use DU

unless they were part of a larger industrial park which is not yet established. As a result, pre-feasibility

studies could not be moved forward to feasibility, scaled-up, or implemented. However, without the pre-

feasibility assessments and determining process temperature requirements, it would not be possible to

know which industries were good candidates for DU. Prior to the development of the project scope, it is

important to understand the needs and objectives of each partner to ensure activities tie into and support

the goals of the program and meet the needs of all stakeholders.

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4.7.3.3 Management

At the start of PAA, the Chief of Party was based in Washington, DC. With the project stakeholders being

based in Kenya, having a Washington, DC-based Chief of Party led to a significant loss of time in

communications between stakeholders. Organizing program activities was difficult and as the program

progressed, it was essential to have a locally based Chief of Party who could work directly with the GDC

on a daily basis. After the first year of PAA, a locally-based Chief of Party was appointed and

communications among stakeholders improved.

4.7.4 Next steps

4.7.4.1 Introduction

In order to continue to support the main goal of using geothermal facilities to provide DU to primarily

rural communities who rely on agriculture for their livelihoods, several next steps are recommended.

4.7.4.2 Engagement

PAA’s most notable success is the further development of DU by the GDC as part of its geothermal

energy program. DU will have a lasting and effective presence in all geothermal development projects in

the future. Equally important is the supportive roles of the local government and the communities that see

DU in a commercial sense and are forming investment groups to set up aquaculture, greenhouses, and

other DU supported agricultural activities. It is important that local governments and communities

continue to be engaged and educated about geothermal energy to ensure their ongoing engagement and

support.

4.7.4.3 Future DU Project Support at Scale

While there were several capacity building activities implemented for GDC staff, and the DU

operationalized, in the near future, more important and complicated tasks such as running and operating

an industrial park will come up. In addition, GDC recently lost some of its engineering staff and as a

result, does not have an adequate number of trained DU staff. It is therefore crucial that USAID and other

potential donors ensure that the GDC continues to receive adequate support as the GDC works towards

scaling up the DU applications. Donor support may consist of: trainings, access to PAA partners and

consultants to serve as trainers and mentors, refinement of GDC strategic plan, and support with investor

engagement.

4.7.4.4 Tea Processing Feasibility Study

The PAA program was only able to conduct a rapid, short assessment of the potential for DU tea drying.

This initial assessment proved promising. Since energy costs represent up to half of the cost of Kenyan

tea production, alternatives such as geothermal energy for improving the efficiency and reliability of

energy for Kenyan tea factories can have a dramatic competitive advantage. Presently, unsustainably

harvested wood is used to provide process heat for tea for about 70 KTDA tea factories using about 2,500

m3/month of wood per factory, which generates large CO2 emissions and is a major contributor to

Kenyan highlands deforestation. Given the proximity of the main Kericho tea factories to known

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geothermal fields (70 to120 km), it appears quite feasible according to KTDA to transport the tea to

geothermal energy sites. There are also a number of tea factories located by the Nyanza rift that may also

have direct access to as yet unexplored geothermal resources. Geothermal tea processing merits a full

feasibility study to fully understand the potential and impacts for applying geothermal DU for tea.