An engineer at the Menegal geothermal field in Nakuru. PHOTO | FILE
What you need to know:
Geothermal Development Company is looking for a consultant to help it determine the viability of the proposed venture at Menengai geothermal field in Nakuru.
The company said its geothermal wells discharge non-condensable gases such as hydrogen sulphide and carbon dioxide and steam.
State-owned Geothermal Development Company (GDC) is set to enter the carbon dioxide production business, signalling increased competition for existing manufacturers including Carbacid Investments Ltd.
GDC is looking for a consultant to help it determine the viability of the proposed venture at Menengai geothermal field in Nakuru. The company said its geothermal wells discharge non-condensable gases such as hydrogen sulphide and carbon dioxide and steam.
“GDC is considering extracting these gases for commercial purposes,” the firm said in the notice, adding that it shall then develop a project concept if the feasibility study is positive.
The parastatal’s move comes at a time when Nairobi Securities Exchange-list Carbacid –one of the largest manufacturers of the gas— has also expanded its output.
Carbacid said it commissioned a new plant at Kagwe last year to reduce costs and boost quality of carbon dioxide produced.
Its rival BOC, also listed on the NSE, has previously announced its intention to start manufacturing the gas but is yet to do so.
BOC holds a dormant licence for mining and manufacture of carbon dioxide. The firm’s absence in the carbon dioxide market has seen its earnings lag behind those of Carbacid –which it unsuccessfully tried to take over in 2005— by a significant margin.
BOC continues to rely heavily on sale of welding equipment, industrial and medical gases including oxygen.
GDC’s entry is set to intensify competition for players in the food and beverage industries –the major consumers of carbon dioxide.
Food and beverage firms including East African Breweries, Coca-Cola, and flavoured juice manufacturers use the gas as a preservative or to enhance their products.
Carbon dioxide is used to carbonate soft drinks, wine and beer. In solid form, it is used as dry ice in refrigeration of foodstuffs like ice cream and meat products. Demand for the gas is expected to rise on the back of growth in the soft drinks industry.
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