Africa Geothermal - Center of Excellence (AG-CoE) Feasibility

Study SummarySupported by:

Conducted by:

Funded by:

PI Feasibility Study Stages1) Catalog of the Needs: regional geothermal development needs related to power generation and direct uses in order to build capacity in the sector. 2) Assessing the Feasibility: long-term sustainability in establishing a regional geothermal AG-CoE in Kenya, through collaboration with Stakeholders as partners:

National Partners (Ministry, Utility, R&D facility, etc.) Regional Partners (UNEP/ARGeo, AUC, EARC, etc.) International Donor Partners (WB, ICEIDA, USAID, KfW AFD, DfID, etc.) Private Sector Developers and Service Partners (Ormat, GDA, Ram Energy,

Baker Hughes, GeothermEx, etc) Academic, Training & Association Partners (UNU, Universities, Geothermal

Associations, Centers of Excellence, etc.)

3) Draft AG-CoE Vision: Board of Trustee’s governance, Director and staff/facility requirements, proposed phased schedule, estimated budget, etc.

4) Validation Workshop: National & Donor buy-in for establishing the AG-CoE. Towards this goal, a Validation Workshop will be conducted August 12-13th.

Rational/Justification for the AG-CoE

Cataloging the Needs

Why an African-Based AG-CoE?

Presently 500+ MW of installed geothermal capacity with expected 1550+ MW increase by 2022, requiring a substantial increase in African geothermal expertise.

Over US$2.5 Billion in donor financing allocated to East Africa geothermal development; stakeholders need to collaborate efforts with regard to build capacity in the region.

Need for state-of-art lab facilities, equipment and hardware/software to achieve African geothermal development goals.

Student Assessed Need

Student Questionnaire:34 respondents of World Congress and UNU students (in which 16 from Africa, 10 from Asia, 5 Latin America, and 3 from Europe) . Key Interests are:

Survey planning, field work and data interpretation & geological modeling,

Exploration drilling, planning, budgeting and managing of drilling operations and data acquisition, understanding of the codes,

Preparing proposals and feasibility studies and PPAs

Almost all students have computer & high speed internet access

A majority said they would value online and e-Library resources

Stakeholder Questionnaires:44 respondents from Stakeholders (i.e. National Entities, Regional Entities, International Donors, Private Sector Developer, and other contributors to geothermal capacity building).

Meeting and Conference Calls with Stakeholders:Meet with 14 National Entities 3 Regional Entities, 17 International Donors, 2 Private Sector, and over 10 others.

Feedback:

Location of AG-CoERole of the AG-CoESustainability of AG-CoE

Stakeholder Assessed Need

Location of CoE Kenya Location:

◦ Most agree that the CoE should be based in Kenya but with a regional focus.

◦ GDC and KenGen both have experience in providing practical short-term training and technical assistance in the region.

◦ GDC and KenGen both have extensive laboratory facilities.

◦ GDC and KenGen both have technical capabilities to meet training and exploration needs.

◦ KenGen and IPPs have extensive Power Generation facilities.

◦ Direct Use developments are actively being perused by both KenGen, GDC, and private sector developers.

Role of AG-CoE

Able to provide:

Training: Short-term targeted courses Practical hands-on technical training Internships

Access to: geochemical lab & equipment geophysical equipment drilling and power plant simulators

Instruction in: data acquisition and management analysis software tools

AG-CoE Sustainability

Possible Funding Sources for the AG-CoE:

Host-Country – in-kind Kenya hosting support

National – Trainee payees, fee Payees for service/equipment

Bilateral and International - Donor support (scholarships) & equipment financing (lab and similators)

Private Sector Developer – Trainee payees and Internships providers

Service Providers & Equipment Providers - Fees to the for CoE organized training

Proposed Mission & Objectives

The mission of the AG-CoE aims to facilitate and accelerate the development of geothermal resources in Africa by serving both common and country-specific capacity building needs.

Objective 1: Develop curriculum & CoE Training Plans that can be re-used and customized to satisfy country-specific needs.

Reduce member-country costs Rapidly scale-up and maintain skilled geothermal workforce

Objective 2: Provide access to shared specialized equipment, facilities, and technology.

Avoid duplicated high upfront expenses Share competencies and skills amongst member-countries

Objective 3: Facilitate stakeholder collaboration & knowledge sharing. Helps coordinate multiple donor agencies Expands and builds data- and knowledge-base

Proposed Objective #1Develop curriculum & CoE Training Plans that can be re-used

and customized to satisfy country-specific needs

Work with member-countries to develop tailored AG-CoE Training Plans building upon the results of the ARGeo gap analysis.

Create, maintain and deliver base/core courses and targeted curriculum.

Provide practical, “real world” training opportunities (e.g., internships and hands-on) from the AG-CoE-coordinated international geothermal community.

Foster academic relationships and curriculum development with universities and other training institutions located in member-countries and overseas.

Provide e-Learning capabilities to be used by both AG-CoE students and graduates (on-the-job training, continuing education) that leverage a worldwide network of geothermal experts.

Proposed Objective #2

Provide access to shared specialized equipment, facilities, and technology

Coordinate access to lab capabilities present at the AG-CoE’s lab as well as collaboration with member-country lab facilities.

Provide access to value-added services such as analytical capabilities and experts consultants that may be located both regionally and worldwide.

Facilitate access to shared field equipment on a loan, rental, or other arrangement.

Provide a state-of-the art e-Learning platform to facilitate distance learning, data acquisition and knowledge sharing.

Proposed Objective #3

Facilitate stakeholder collaboration & knowledge sharing

Based on member-country specific training needs, tap into donor provided training and support programs.

Develop and provide simulator-based training in drilling and power plant operation/management; coordinate training of these shared tools.

For CoE-supported modeling tools (e.g. Leap Frog), negotiate licensing arrangements for member-countries; provide re-usable tool training courses; and facilitate on-going, best-practice use and analytical support.

Facilitate the development, use and maintenance of a common internal data management and sharing capability. The data can then be easily provided to selected potential developers/investors.

Establish drilling and geothermal resource testing codes to standardize exploration practices and provide a common regional vocabulary and method of calculating geothermal resource capacity to promote project investment/development.

Content and Facility

Assessing & Addressing a Feasible Business Model

Based on the Needs & Objectives

CoE will help Countries to develop a tailored CoE Training Plan, building upon the results of the ARGeo gap analysis, that includes:

CoE Trainings: Short duration (1 to 2 weeks–2 months) Medium duration (2-4 months) E-Learning (Blended Learning)

Collaborations with Stakeholders Trainings: Long duration (4 months–1 year at affiliated institutions) University linkages (giving certificate level accreditation with

Universities) Internships (regional/International with public & private

sector)

CoE Country Plans.

Different Countries Needs

1) Countries with plans to generate power from geothermal energy resource in the next 5 Years:

Kenya Ethiopia Djibouti Comoros Tanzania

2) Countries with plans to identify geothermal prospect areas including drilling in the next 5 years:

Rwanda Burundi Eritrea Zambia Democratic Republic of

Congo (DRC) Malawi Mozambique Uganda

Demand-Driven NeedsShort-Term Targeted Training: Geology Geochemistry Geophysics Reservoir modeling Geodata collection, GIS,

management Environmental management,

policies, climate change Legal, policy/regulatory issues Project formulation, appraisal,

negotiation, approval, management

Drilling engineering, planning & budgeting

Reservoir engineering and field operations

Power plant design, construction, mgt., O&M

Transmission line planning, construction

Business principles, economic analysis, finance and PPAs

Proposal Tender & Contracting Models for public, private sector

participation Direct use applications, planning,

implementation

Interdisciplinary Capacity-Building Curriculum

Short-term targeted training

Internships University Linkages

State-of-the-art geochemical laboratory facility designed to provide:◦ Practical training in field sampling and sample analysis. ◦ Laboratory value-added support to countries

The facility is envisioned to serve as a clearinghouse:◦ Provision of tools and technical assistance in geophysical

analysis.

CoE Training Lab, Analysis & Equipment Support

Future Envisioned Facilities Administrative block which shall house CoE administrative offices.

Workshops where hands-on instruction.

Lecture classrooms for theoretical student training.

Laboratory that can be used for training students.

ICT e-Learning & data center.

Accommodation for students and staff.

Kitchen and dining room facilities.

Function room for conferences and social events

AG-CoE ITC Vision

AG-CoE Learning Management

LMS

DMSS

AG-CoEMember-Countries,

Stakeholder Systems

• Shared data, content• Secure, permission-based• Project, industry, country info• Open standards

AG-CoE Facility (Kenya)

AG-CoE Cloud

Students

Instructors

Administration

Visitors

Students

Instructors

Experts

Consultants

Global Online AG-CoE users

LMS = Learning Management SystemDMSS = Data Management and Sharing SystemGeoApps = Modeling, Visualization, Simulation…

(Home)

(Conference)(Workshop)

(Seminar)

(Work, job)

Learning Instructors

(Universities)

Professors

Consultants

• Public access• Secure Member-Country access

• New courses• Course sharing (leverage)• Distance participation• Collaboration (experts)

Researchers

(Labs)

(Internships)

(Courses)

(NGOs)

(Other AG-CoEs)

Subject Matter Experts

(Seminar)

(Workshop)

(Equipment Manufacturers)

GeoApps

Learning Resources

Mobile Device Web

browser

Organization & Governance

Structure

Assessing & Addressing the CoE Vision & Mission

Africa GeothermalCoE Action Plan & Roadmap

Summit - Northern Corridor Integration Projects: February 2014, there was an agreement between regional Presidents (Kenya, Uganda & Rwanda) in which the President of Kenya committed to establishing an Africa Geothermal Center of Excellence in Kenya, to be located at GDC with a satellite campus with KenGen, with the goal to help fast track training for geothermal experts in the region.

AUC Action Plan and Roadmap: Since 2010, the concept of a regional CoE has been discussed in the region. More recently at the 3rd AUC geothermal donor coordination meeting held in Iceland in May 2014, the participants agreed that: There is an urgent need for Regional Capacity Building Program to build the required geothermal capacity in the region.”

Recommended Governance Autonomously managed CoE working collaboratively with training institutions,

donors/lenders, private sector companies, universities and other capacity building agencies

Recommended Governance Structure:

Steering Committee: Under the guidance of the African Union Commission as Chair, the Committee shall comprise AUC, UNEP, GDC, KenGen and UNU.

Advisory Committees: Committee members can come from member-countries and outside agencies. Subcommittees may be formed as needed, but kept small in size, for example:

◦ Training & Curriculum (course content, standards and equivalency certificates and diplomas).

◦ ICT & e-Learning◦ Laboratory & Standards for Accreditation◦ Facilities & Equipment ◦ Direct-Uses

Recommended CoE Secretariat: The AG-CoE should have a small independently run permanent staff including the following:

Director (overall admin, curriculum, donor coordination and assistance with country-specific master CoE Training Plans)

Curriculum Manager (support regarding curriculum/master CoE Training Plans)

Geoscience Learning Manager (geology, geochemistry, geophysics department head)

ICT Learning Manager (e-distance learning, data management and information dissemination)

Technology Technician (Geo web site/Portal systems; Audio/Visual, equipment, etc.),

Administrative Manager (assistant, secretary. Accountant, etc.)

Support Personnel/Experts/Instructors: Physical and/or virtual courses and expert technical assistance from Stakeholders (see next slide).

Administration & Support

Stakeholder Collaboration NationalMinistries of energy and geothermal-related divisions in African countries that have hosted trainings and/or sent their staff for regional/international trainings that have helped build internal capacity in relation to technical, economic, financial, legal, regulatory know-how that has promoted the development of geothermal resources in their respective countries.

RegionalRegional players such as AUC, ARGeo/UNEP, EARC have been active in providing on-going training and support mechanisms to forward geothermal developments.

 

International Donor

Donor agencies have invested billions in financial and technical support toward capacity building and the development of geothermal resources in the region.

 

Private SectorPrivate Sector project developers are in need of trained staff in the field, such as exploration geologists, geochemists and geophysicists, drilling personal and drilling managers, reservoir engineers, power plant designers and operators, etc. Foreign imported labor increases project costs.

Other Agencies & Associations

Academia, capacity building programs and other centers such as Africa and International Universities, AG-CoEs Internationally, and Associations such as IGA, GEA and GRC’s Workshop & Programs.

AG-CoE Student Selection

Demand-driven, based on countries/private developers needing trained manpower

Solution provider, tailored to provide country-specific training plans that address needs as determined by the ARGeo Gap Analyses

Priority should be given to eligible women candidates. Geothermal training programs on average have about 30-40% females students. It is expected the gender balance in the CoE shall be approximately the same.

Estimated budget/cost of CoE

Assessing & Addressing a Feasible Financial Business Model

Based on the CoE Framework

AG-CoE 5-Year Budget ($14.2 M)

PLAN; 735000; 5%

STAFF; 1725000

; 12%

FACIL-ITY;

590000; 4%

ITC; 517287.5; 4%

OTHER; 1325000

; 9%

LAB; 1319500

; 9%

TRAINING; 8000000; 56%

5-Year Budget by Category ($14.2M USD)

PLANSTAFFFACILITYITCOTHERLABTRAINING

AG-CoE 5-Year Budget ($14.2 M)

2015 2016 2017 2018 2019 TOTAL$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$0.3

$2.9 $2.8 $3.2 $3.3

$12.4

$0.0

$0.4 $1.3 $0.1 $0.1

$1.8

5-Year Budget by Expense Type

CAPEXOPEX

Expense (

$M

USD

)

Lab, field equip.

Annual Operating Budget = ~$3.3M USD per Year

Funding Startup in-kind support from GoK

Initial Financial support to be requested from multilateral, bilateral donor/lending agencies (such as: AfDB, WB, UNEP, UNDP, JICA, KfW, ICEIDA, AFD, DFID, SIDA, NORAD, BGR, CIDA, USAID, DANIDA, FES, EU, other)

Ongoing financing from tuition fees, rental fees, service fees, dues from member-countries, donor scholarships, etc.

Sustainability Business Models Training Income

• Course registration fees?

Donor Contributions• Training Assistance – tuition help, scholarships?• OPEX grants?• CAPEX grants?

Power Production Royalties• Percentage of gross sales?• Charge per MWH generated?• Finance all or part of CoE cash flow needs?

In-kind Contributions• Lab/field equipment; instructors; training materials/curriculum;

facilities?• GDC, KenGen, UNU, Others?

PI TeamDr. Gordon Bloomquist

Mr. Jeff PonsnessMr. Martin MwangiMr. Stephen HirschMs. Tracy Mathieu

Partnership International3050 “P” Street NW; Washington, DC 20007 USA

Tel: +1 202 333 6866AG-CoE@partnership-international.com

  www.Partnership-International.com

Thanks for your Interest