Taranis is taking a majority stake in the company that holds the Corbetti geothermal project in Ethiopia, according to the terms of the transaction detailed on Monday 12 October by Eversheds Sutherland, InfraCo's legal adviser. InfraCo retains a significant minority stake in Corbetti HoldCo.
The structure provides for roughly 17.1 million dollars in equity subscriptions from Taranis and 6.74 million from InfraCo, or nearly 23.84 million in total. A convertible loan of 9.5 million dollars, provided by Taranis, is to fund exploration drilling. These separate financings do not constitute an announcement that the plant has been commissioned.
The transaction involves several interlinked steps, including share transfers, new subscriptions and the conversion of existing loans into equity. The firm says it required regional and Ethiopian competition approvals, without publishing the exact percentage held by each of the two investors.
The partnership had been presented by the Private Infrastructure Development Group, to which InfraCo belongs, as early as 18 June at the Africa Energy forum in Cape Town. It then concerned a convertible loan agreement and the prospect of a broader investment. Information published on 12 October sets out the split of the new capital and Taranis's takeover of control.
Located about 250 kilometres south of Addis Ababa, Corbetti is to be developed in two phases. According to PIDG, exploration drilling must precede a first plant of 50 megawatts, after which a second stage would add 100 megawatts. These capacities remain development targets, not electricity already available to the grid.
PIDG, involved in the project since 2015, presents geothermal energy as a renewable source capable of delivering steady output. For Ethiopia, it should also help diversify electricity generation, which relies heavily on hydropower and is therefore exposed to rainfall variations.