Geothermal Investments Hold Promise for Djibouti

First, Iceland's Minister of Industry Ossur Skarphedinsson and Mohamed Ali Mohamed signed an agreement on energy cooperation where the countries will share expertise to support Djibouti's course towards energy sustainability. Second, Reykjavik Energy Invest (REI) and Djibouti Energy Company announced the signing of an agreement on the financing structure for the Djibouti Asal Rift Geothermal Project.

As part of the Asal Project, REI intends to build a geothermal power plant, which is estimated to start production in 2012. REI's projects in Djibouti are part of the company's $150 million commitment to investments in geothermal energy in Africa announced by Bill Clinton and President Grimson at the Clinton Global Initiative in New York in 2007.

"The cooperation between Djibouti and Iceland will help transform the oil-based energy system of Djibouti to clean, geothermal-based energy. This cooperation could become a landmark in the clean energy future of East Africa," said Olafur Ragnar Grimsson, President of Iceland.