Red Sea Drilling Company, Djibouti?s geothermal company, established

Djibouti has established its own national geothermal energy engineering company, dubbed the Red Sea Drilling Company (RSDC), reaching another milestone in its geothermal energy development.

Also Read: KenGen signs contract to drill three geothermal wells in Djibouti

Red Sea Drilling Company is set to work to develop the East African country’s geothermal power reserves and also plan for training and capacity building that should see it produce a number of engineers and technicians in the coming years, essential for the country’s energy independence.

Additionally, the company plans to build capacity in water drilling in a bid to reinforce the country’s water security and further down the line, acquire mining and oil and gas drilling capabilities.

In the mid-term, RSDC plans to become an East African drilling major tapping into the Ethiopian, Somaliland and Kenyan markets. However, for now, foreign expertise is still essential for the country’s goals, which is certainly way behind the US $6.5M contract awarded to Kenya’s KenGen in February 2021 by ODDEG to drill three wells in Lake Assal.

Djibouti’s dream of using geothermal energy to supply the domestic market and become a power exporter.

In time, the RSDC is set to be at the center of Djibouti’s ambitious dream of using geothermal energy to fully supply its domestic market and become a power exporter.

It is estimated that the East African country holds approximately 1000-MW of generating potential in its geothermal sources, which is enough to fulfill the domestic demand with an added surplus, enough to provide electricity to the 50% of Djiboutian’s that are still not connected to the national network, and to supply its growing power-hungry industrial sector.

Djibouti is currently vastly dependent on electricity imports from the neighboring republic of Ethiopia and on a relatively small heavy fuel-based power generation network. Geothermal power presents the opportunity for a significant reduction in electricity costs, as well as an increase in the country’s economic prosperity.