(Yicai Global) April 8 -- Zhejiang Kaishan Compressor, a Chinese mechanical equipment maker, has landed a USD65 million engineering, procurement and construction contract to build a geothermal power plant in Kenya as it expands into a new energy industry.

Kaishan Renewable Energy Development penned the deal for the 35 megawatt facility with Sosian Menengai Geothermal Power, its parent said in a statement today. SMGPL is building the facility in the Mennonay volcanic geothermal block in Nakuru, Kenya, and has an agreement in place to sell the electricity generated there to Kenya National Power. It already has a license to generate power from the Kenyan government.

After 40 years in the air compressor industry, Kaishan Compressor is committed to shifting to the green energy business, according to its website. Screw expanders made by the firm are widely used in geothermal, photo thermal and biomass power generation.

Its subsidiary also penned a 14-year operation and maintenance deal worth USD18 million for the plant. The unit and SMGPL will adjust annual costs based on local price indexes.

Editor: James Boynton