On Thursday, the Icelandic International Development Agency (ICEIDA) announced the signing of a US$499 000 deal with Italian engineering firm ELC Electroconsult SpA, who won a bid to conduct geothermal surface exploration in Ethiopia, SeeNews reported.

Situated in Aluto Langano, the geothermal field has an abundance of gas and water and if successful, could create many opportunities for East Africa.

ICEIDA and the Nordic Development Fund (NDF) are working together to develop an initiative which motivates and drives geothermal exploration and development in the East African region. The initiative will primarily aim to educate relevant countries in geothermal energy and how best to exploit the resource.

Kenya has tapped into their geothermal resources, generating 19% from geothermal. Kenya Electricity Generating Company (KenGen) has installed 200MW of geothermal energy feeding into its energy mix and has plans to develop additional geothermal power, according to the Energy Information Administration (EIA).