State Now Takes Stock of Coal As Fuel Prices Bite, Kenya

0

The Government has started the process of quantifying the coal reserves in Kitui and Mwingi districts as pressure mounts to address escalating global oil prices.

The Energy ministry yesterday invited bids from international firms to carry out the last phase of the drilling campaign in the Mui basin exploration area to determine the commercial viability of the reserves.

According to the tender notice carried in the local dailies, the successful firm will be required to drill 20 more wells at different selected sites in the basin to ascertain among other things, the coal quality and recommend its best method of extraction.

The contracted drilling company, which will begin the work in September, will also carry out detailed geological description and analysis of the coal seams and determine the quantities of the available coal reserves.

The move by the ministry comes in the wake of rising oil prices and it will be the last phase to conclude the slow exploratory drilling campaign in the two districts which began eight years ago.

However, there are fears that the fresh bids may not attract the best drilling expertise which is lacking in the region, to hasten the process of concluding the exploration.

This is the second time private drilling firms are being invited to supplement the slow Government efforts which have been worsened by lack of specialised machinery.

In July last year, the ministry floated similar bids but failed to get a response from firms within East Africa capable to undertake the intensive drilling.

Sources at the ministry said that majority of those who responded were only specialists in light borehole drilling and lacked the capacity as they had not ventured in Coal mining before.

Coal deposits in the swampy Mui basin are being touted as the best energy alternative to cushion the country’s economy against effects escalating global oil prices.

Energy experts say Coal discovery in the two districts is also opportune for the country as it needs a lot of energy to drive the vision 2030 development agenda.

Coal is used in a variety of ways, but mainly in the generation of cheap electricity.

For instance, in South Africa where coal mining has been a major activity for many years, the cost of electricity is four times cheaper than in Kenya.

Kenya spends a large amount of her foreign exchange earnings in importation of crude oil because deposits of oil or natural gas resources have not been discovered in the country.

The current situation is such that 67 per cent of Kenya’s total power is generated from hydro sources, 10 per cent from geo-thermal and 23 per cent from thermal which is price sensitive to fluctuating international fuel prices.

According to Mr Alfred Odawa, the acting chief geologist, the anticipated exploitation of coal would free some of the country’s foreign exchange reserves for other purposes.

He says: “With increasing world energy demand and rising global oil prices, the exploitation of coal in the country means that Kenya’s industrial development which, to a large extent is hinged on the cost of energy will be achieved at a faster rate”.

Mr Odawa added that with an indigenous source of energy and the country will have attained full industrial development by 2020.

Exploratory drilling spearheaded by Government geologists which, began in 2001 has been yielding encouraging results raising hopes of Kenya becoming a coal producer.

AllAfrica.com
Kitavi Mutua

Speak Your Mind

Tell us what you're thinking...