(Yicai) Nov. 21 -- Shares in Kaishan Group advanced today after the Chinese aircompressor maker that is transforming into a renewable energy company said that a geothermal power plant that its subsidiary built in Kenya has been put into operation.

Kaishan’s share price [SHE: 300257] was trading up 1.1 percent at CNY14.70 (USD2) as of 1.30 p.m. today. Earlier in the day it climbed 2.4 percent to hit CNY14.90.

The Sosian Menengai Geothermal Power Station, which has a capacity of 35 megawatts, started operations on Nov. 6, the Shanghai-based company said today, citing a letter it received from the country’s grid operator Kenya Power and Lighting yesterday.

Kaishan’s local subsidiary submitted the winning bid of USD65 million in April 2019 to provide engineering, procurement and construction services to the Sosian Menengai Geothermal Power Station, the company said. But building did not start until October 2021 due to delays caused by the Covid-19 pandemic. All the equipment was installed by April, and test running of the power plant began in June, it added.

The Sosian Menengai project is Kaishan’s first large geothermal power plant EPC project and is a major step for the company to become a leading equipment supplier in the global geothermal market, Kaishan said. The power plant’s successful operation will demonstrate Kaishan’s excellent construction standards, the efficiency of its electricity generation and the high performance of its equipment, it added.

The Sosian Menengai Geothermal Power Station is the second power plant in Kenya’s Menengai area, which is rich in geothermal resources, that Kaishan is involved with. In August, Kaishan paid USD11.1 million to acquire Orpower Twenty Two, a Kenyan geothermal power firm, to build its first wholly owned geothermal power plant on the African continent.

Kaishan is transforming into a global green energy company and the firm is involved in geothermal projects in countries including Indonesia, the US and Hungary.

Editor: Kim Taylor