GEOTHERMAL ENERGY SECTOR IN THE REPUBLIC OF DJIBOUTI

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Republic of Djibouti GEOTHERMAL ENERGY SECTOR IN THE REPUBLIC OF DJIBOUTI General Director of Djiboutian Agency for Geothermal Energy Development ODDEG Mr. Abdou MOHAMED HOUMED Coordination Meeting with donors and Geothermal Meeting 26-28 th May 2014; Reykjavik, Iceland

BACKGROUND Republic of Djibouti Geographic location The country was located in the East coast of Africa in the horn of Africa between Ethiopia and Somalia at the mouth of the Red Sea (11 North and 43 East). With a land area of 23,200 km² and a 818,000 inhabitants. The climate is arid with high temperature and high humidity rate.

BACKGROUND Republic of Djibouti Economic activity The strategic location on major international shipping routes, the Republic of Djibouti is a regional transport hub. The transport sector remains the mainstay of the national economy: port services and transit and road services are the main activities of the tertiary sector, which contributes over 70% to the creation of wealth. Djibouti has benefited in recent years foreign direct investment in harbors, tourism and construction. In addition, Djibouti has an efficient telecommunications networks.

GEOTHERMAL HISTORY Between 1970 to 1975: The two wells have yielded good temperatures only one of them has proven producer of geothermal fluid (Asal 1) but too salty. Between 1980 to 1985: The Djibouti government has conducted a detailed general inventory of geothermal resources and more areas of interest were identified Between 1987 to 1988: The deep geothermal exploration has seen the completion of two drilling wells in Hanle (Hanle 1 and 2) and four other wells in the Asal Rift (Asal 3, 4, 5,6). Between 1989 to 1990 : A study of inlay and corrosion was performed on the well Asal 3. This study was to better assess the effects induced by the deposits and corrosion..

GEOTHERMAL POTENTIAL The Djiboutian territory has extremely favorable conditions for industrial development of geothermal energy. Djibouti is located at the crossroads of three oceanic rifts of the Red Sea: Red Sea - Gulf of Aden - The African Rift Valley. Djibouti, has 10 geothermal areas of interest, including three main areas were identified as having geological sufficiently promising in terms of potential geothermal fluid for electricity generation

GEOTHERMAL RESSOURCE MAPS Simplified geological map of the Republic of Djibouti, indicating hydrothermal events: Potential sites (red circles), hot springs (red dots) and fumaroles (blue points).

PREVIOUS GEOTHERMAL PROSPECTS FIRST PHASE Preliminary field studies Asal rift geophysical studies First geothermal drillings in Asal Rift geothermal area Nord-Goubhet geophysical studies (BRGM, 1970) SECOND PHASE Asal 3: first production test Hanlé-Gaggadé exploration (field studies and Scaling gradient study wells) Hanlé geothermal drillings Asal rift new drillings and geophysics Scaling and corrosion study of Asal rift deep reservoir Asal 3: Second production test THIRD PHASE Prefeasibility study carried out by the Reykjavik Energy Invest (REI) between October 2007 to April 2008 with news Geophysical methods (MT, TDEM) in The Asal rift zone.

RECENTS GEOTHERMAL ACTIVITIES CURRENT STUDIES & RESSOURCES ASSESSMENT PROGRAM Feasibility study in the Asal-Fiale caldera with the World Bank leadership and others partners (Afdb, ESMAP, OFID, AFD,GEF). Data Collection Survey on Geothermal development undertaken by the Japan Cooperation JICA (2014). Geothermal Capacity Building under the Geothermal Exploration Project Financed by the ICEIDA. Obock geophysical and geochemical studies (CERD, 2013).

ASAL-FIALE PROJECT Most promising geothermal site in the Asal Rift. Technical specifications of the project: Surface exploration done by Reykjavik Energy Invest (REI) in 2007. Financing provided with the leadership of World bank and some others partners (Afdb, ESMAP, GEF, AFD, OFID). Fiale Drilling of 4 deviated Production wells planned. Planned Power Plant on the site: 50MW for the first stage. Project starting on the second semester of 2014.

DATA COLLECTION SURVEY Following to our request the Japan Government have granted the Republic of Djibouti on geothermal resource assessment, through vast field survey on the 13 prospects sites. Main activities planned on this project are: Geological survey Geochemistry survey Geophysical survey

GEOTHERMAL CAPACITY BUILDING The Government of Republic of Djibouti is highly delight to participate on the «Geothermal Exploration Project» Undertaken by the Icelandic International Development Agency ICEIDA. The main activities of the project are the human and technical capacity building to develop the geothermal potential of the country. The main activities are : 1. The training of the ODDEG technicians and staffs on drilling activities and exploratory study (field and UNU-GTP training). 2. The institutional capacity building for the ODDEG management team and technical assistance on review of previous study and data analysis.

INSTITUTIONAL ARRANGEMENT In order to promote the geothermal potential according to the «VISION 2035» on Green Energy Vision the government have created a New Agency focusing on geothermal resource development ODDEG. Within the framework of the policy defined by the Government, ODDEG have these mains tasks: Identification of the various types of geothermal resources of the country (high and low enthalpy). The completion of exploration, reconnaissance and research work. Conducting pre-feasibility studies and feasibility studies for the industrial development of these resources and the diversification of their uses. The identification, with appropriate partners, public and private operators likely to ensure the development of geothermal energy, and any associated products. Make available geothermal resource for independent power producers (IPP); The execution of all work, construction or operation of works relating to the subject matter; The collection of data, information and advice to public and private sector ;

MANY THANKS FOR YOUR ATTENTION