STATE OF ENVIRONMENT REPORT MENENGAI GEOTHERMAL DRILLING PROJECT, MENENGAI

CALDERA10th January 2018

Compiled by Mr. Jackson Raini-FOMEC ChairmanIntroduction

In Oct 26, 2010 the Geothermal Development Company (GDC) started drilling for the US$716m (Ksh.7.16billion) geothermal project at the Menengai Crater in Nakuru. Geothermal Development Company Limited (GDC) is a 100% government owned State Corporation operating under the Ministry of Energy. It was created as a special purpose company to accelerate the development of geothermal resources in Kenya.

The project involves civil works for construction of access roads, drill sites and drilling and testing of 3 exploration, 6 appraisal, and 27 production geothermal wells to exploit geothermal energy. Well testing activities include down hole, completion and other scientific tests. The exact number of production wells will be determined by the average output of each well. The wells are drilled to depths of approximately 3000 m to access geothermal fluids (steam and water). Five operational rigs for Menengai geothermal drilling project require 1,200,000 m³ for every 60 days of drilling.

Since GDC’s core activities include exploration, drilling, assessing and development of geothermal resources for power generation and other alternative uses, FOMEC entered into an agreement with GDC to conduct routine Environmental Monitoring to assess the Project’s impacts of these activities on fauna and flora, water, air, sanitation, solid waste pollution, pollution from oils, brine and geothermal fluids, noise pollution and wastewater management so as to assist GDC achieve full compliance with the project ESIA.

In January 2016, the new management at GDC suspended the agreement with FOMEC regarding regular Environmental Monitoring in Menengai. To overcome this unfortunate development, the FOMEC discussed with the County Government of Nakuru and NEMA on the need to partner with FOMEC to provide oversight on the developments in Menengai with the intention of ensuring that Environmental and Social impacts are mitigated as per the Environmental Management Plan (EMP) as captured in the Project ESIA.

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This Environmental Status Report of the Menengai Geothermal Drilling Project is an outcome of these discussions.

FINDINGS

1. The Menengai geothermal steam field development project involves the supply of steam by the GDC to three power plants at the Menengai Geothermal field, as well as the purchase by KPLC of the power generated by those plants. The plants are to be financed, designed, constructed, installed, operated and maintained on a build-own-operate basis by three Independent Power Producers (IPPS) – QPEA GT Menengai Limited, Sosian Menengai Geothermal Power Limited and OR Power Twenty-Two Limited. The three IPPs were to develop and construct three 35 MW geothermal power plants with a total capacity of 105 MW by December 2015. None of the 3 IPPS has started construction work at the three sites earmarked for the power plants.

2. GDC has five rigs, four of which are currently drilling at various sites. The other sites that drilling is ongoing or has been recently completed include: MS21, MS18, MS52, MS33, MS48, MS47 and MS50 (Fig 1-Map). GDC has drilled and tested over 30 wells at the Menengai caldera each with an estimated production of 5-10Mw.

3. KETRACO has almost completed constructing a 12km 132kV transmission line for evacuating geothermal generated power from Menengai crater and injecting it to the national grid at Soilo. Additional transmission lines that are not mentioned in the KETRACO Project ESIA have already been put in Menengai, notably at MW18 and areas just below the main view point.4. H-Young is actively installing the steam gathering system. This involves clearing a lot of vegetation. The laying of the steam gathering system should ensure the impacts on flora and fauna is mitigated. 5. GDC continues to waste large amounts of water along the water pipeline

through numerous bursts. Burst pipes should be fixed to reduce wastage. Based on the geologic structures and recent investigations of ground water elevations and transmissivity of the aquifers, recharge of Lake Nakuru is principally from the north east Bahati Escarpment and from the Menengai Crater. GDC has drilled 8 boreholes and plan to drill more in a drained wetland, yet the large volumes of water that is wasted have not been accounted for. The wastage must stop to safe ground water and ensure the local communities and NAWASCO boreholes do not all dry-up.

6. GDC continues to dispose sewage and wastewater into open soak pits near the Base Camp and other drilling sites. Solid waste disposal is done

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in open ground. The organic waste composting pit constructed earlier at huge cost by GDC has been abandoned.

7. Pollution from brine, steam condensate, noise pollution and hydrogen sulphide smell was noted.

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Photo1: Menengai View Point- view of the Well pads and 5 GDC Rigs in Menengai on 19 th Dec. 2017

Photo2: GDC Water Pipelines with numerous bursts that occasion wastage of large volumes of water.

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Photo4: An abandoned GDC Solid Waste Composting Unit constructed at huge cost in 2014. GDC does not have a registered Waste handler and the County Government doesn’t have information on where GDC disposes solid waste generated from the camp and drilling sites.

Photo3: County MENR Director Mr. Murithi looks at an open soak pit used for sewage disposal at the GDC Base Camp in Menengai

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Photo 5: Dilapidated and leaking Brine Pond at a GDC Drilling site (MW 10) Rig 2

Photo 6: The Steam gathering pipes being laid by H-Young in Menengai at MW1

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Photo 7: The Steam gathering pipes being laid by H-Young in Menengai at MW 06 site

Photo 8: Steam discharging at MW 9 near Water Tank site. High noise levels, scorching of flora /fauna from steam condensate and emission of Hydrogen sulphide smell as far away as Rigogo, Mashiaro and Kiamunyi villages.

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Photo 9: The environmental impacts Geothermal Rig drilling at MW 11 and MW 19 in Menengai

Photo 10: Vegetation clearance at Steam gathering pipes being laid by H-Young at the KETRACO power sub-station in Menengai

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Photo 11: The KETRACO Power Sub-Station in Menengai and a 12km 132kV transmission line. Impacts of the transmission lines on bird life in Menengai include electrocution and collision risks to birds especially Verreaux Eagles and Flamingos.

Photo 12: Brine Pond containing geothermal brine at MW19. Brine is alkaline. Chloride concentration is high (444.4ppm) and contains toxic heavy metals such as Lead, Cadmium, Zinc and Copper. Brine and Drilling water returns should be contained to safeguard the ground water.

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Photo 14: The GDC Tree Nursery in Menengai- GDC donated 500 tree seedlings to FOMEC and County Government (MENR) for urban greening. The nursery has significantly reduced the variety/tree species of seedlings, with only a few indigenous tree seedlings.

Conclusion

The Sh60 billion project was expected to generate 400 MW by 2014 and increase to 800 MW by 2016 and 1000 MW by 2018. So far, no work has begun at the three sites earmarked for the construction of the power plants and GDC has not offered any explanation to stakeholders on why the project has delayed for 2 years. The stakeholders need to be informed on why the current delay.

The County Ministry of Environment will follow up with GDC on how and where the solid waste generated from its operations is disposed of.

There is need to plan a structured Environmental Spot Inspection led by NEMA and MENR to assess the GDC, H-Young and KETRACO operations in Menengai and develop a comprehensive report on the current environmental status in Menengai.

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