São Paulo – The World Bank should loan US$ 6 million to Djibouti so the country can build a geothermic mill. The agreement was signed on Sunday (13) and the funds will be transferred to Djibouti through the International Development Association (IDA), a branch of the World Bank that supports the poorest countries in the world.
According to the press statement disclosed by the institution, the Project for Generation of Geothermic Energy should produce electricity from the heat from underground rocks in the region of Assal Lake.
To generate geothermic energy, the mill uses steam from water from the interior of the underground rocks. This is increased to high pressure, which makes it capable of turning turbines. These turbines generate mechanical energy, which is converted into electricity through a generator.
This kind of mill operates similar to thermal electric mills. However, it does not issue greenhouse gases as it uses heat from within the earth to generate energy. Thermal electric mills burn fossil fuels to obtain the same result.
The mill in Djibouti may generate up to 50 MW of energy, enough to supply a city of approximately 300,000 inhabitants. According to the World Bank press statement, this mill may supply the energy demand of Djibouti and reduce electric spending by up to 70%. Still according to the World Bank, 100% of energy generation in Djibouti may come from sustainable sources by 2020.
The project is budgeted at US$ 31 million. Of the total, US$ 6 million will come from the IDA, US$ 500,000 will be invested by the government of Djibouti and the remains will come from the countries in the Organisation of Petroleum Exporting Countries (Opec), the African Development Bank, the Danish Sustainable Energy Fund for Africa and the French Development Agency.
According to the minister of Finance and Economy of Djibouti, Moussa Dawaleh, the project should generate safe and clean energy for Djibouti when the mill is operating. “All our citizens should have access to a reliable and affordable source of electricity, which is crucial for the development of the economy and the well-being,” he said.
*Translated by Mark Ament
