Proceedings World Geothermal Congress 2005
Antalya, Turkey, 24-29 April 2005

Geothermal Exploration Opportunities in Eritrea
Michael Abraha
Ministry of Energy and Mines, Department of Mines, P. O. Box 272, Asmara, Eritrea
m_abraha2002@yahoo.com
Keywords: Alid, Eritrea, Geothermal Prospect, Geothermal
Law, Investment Proclamation, Independent Power
Producer

Cushitic (or Hamitic), the Semitic, and the Nilotic
languages.
2. STATUS OF ENERGY SECTOR
The Eritrea Electric Authority (EEA) had approximately 50
MW of diesel-fired generating firm capacity in 2001
excluding the new 84 MW Hirgigo power plant, which wascommissioned early 2003.

ABSTRACTThe Government of Eritrea is entirely dependent on
imported oil for the production of its electricity. As a result,the production of geothermal electricity will decrease
foreign exchange expenditures, provide energy security,and decrease GHG emissions.

Around 21% of Eritreans have access to electricity, but only
2% of the rural population are estimated to have the access.
Averaged over the whole population, per capita electricity
consumption has improved from as low as 16 kWh in 1991
to 60 kWh in 2001.

The Government has established a conducive environmentfor IPPs and investors. It sees its role as bringing project
opportunities to the point where private sector companies
and investors will become involved, carry them through tocompletion and ensure long term operation andsustainability.

Over 66% of the energy consumption is obtained frombiomass and 34% is obtained from imported oil.
The country's biomass energy resource is being usedunsustainable contributing to the degradation of theecosystem - a factor that has prompted quite extensive
afforestation and reforestation as well as soil and water
conservation programs.

As a result of previous work carried out by the Ministry ofEnergy and Mines of Eritrea and the US Geological Survey(with the financial support of USAID) at the Alid Volcanicarea. The Government of Eritrea wishes to pave the way for
geothermal-based rural electrification through theinstallation of a pilot geothermal power plant at Alid andthe identification of new prospects for additional
geothermal plants in the future.

Present and projected power demand – power use
profilesTo extend the supply of electricity to an increasing numberof locations and customers, international, regional or
national power companies, local or foreign Independent
Power Producers (IPPs) and Independent PowerDistributors (IPDs) are encouraged to invest in the required
infrastructures. The Government will soon establish anElectricity Regulatory Board and a System Operator withwhom the IPPs and the IPDs will interact. The IPPs havethe option to generate power from sources like therenewables wind and solar, geothermal, or using state of theart conventional energy technologies. In principle
importation or exportation of electricity and thus regional
integration of power are permissible subject to the approvalby the Government. In particular national companies andelectric membership co-operatives are highly encouraged toenter in the market of rural electrification either byextending the national grid or through a self contained
system of generation and distribution.

The Government feels the best way to do this is to pursue a
two pronged program that builds on the earlier work at Alidand includes (A) siting, drilling between 1-3 geothermal
exploration wells and carrying out the related resource
analysis and modeling at Alid and (B) implementing a
regional geothermal reconnaissance survey to outline
potential geothermal resources throughout the eastern
lowlands of Eritrea (along the Red Sea) where fivegeothermal manifestations (hot springs and fumaroles) havebeen identified. The regional survey should include
appropriate geological, geochemical, and geophysicalsurveys.
1. INTRODUCTION
Eritrea is located in the Horn of Africa and is bordered on
the northeast and east by the Red Sea, on the west andnorthwest by Sudan, on the south by Ethiopia, and on thesoutheast by Djibouti. The country has a high centralplateau that varies from 1,800 to 3,000 meters (6,000-8,000feet) above sea level. A coastal plain, western lowland andsome 300 islands comprise the remainder of Eritrea's landmass.

One of the major constraints in the rehabilitation anddevelopment efforts in Eritrea is the acute shortage ofEnergy.
Being aware of the importance of Energy in the nationbuilding, the Government of the state of Eritrea has given agreat attention to the study and development of indigenous
energy resources.

The climate is temperate in the mountains and hot in thelowlands. Asmara, the capital, is about 2,300 meters (7,500ft.) above sea level. Maximum temperature is 26o C (80o F).
The weather is usually sunny and dry, with the short rainyseason occurring during February-April and the longer
rainy season beginning in late June and ending in midSeptember.

3. ENERGY POLICY
Diversify primary energy resources through appropriate
study of the indigenous energy resources.

Eritrea’s 3.5 million citizens belong to nine major ethnic
groups, and are part of three distinct linguistic families - theElectrify rural areas, take appropriate measures to conserveenergy and encourage private sector's involvement.
1Abraha
Alid rises about 700 meters above the floor of the Danakil
Depression, a crustal spreading center that traverses theeastern lowlands of Eritrea. This mountain is a structural
dome that formed as a result of local intrusion(s) of silicic
magma into the upper crust. Intrusion of this magma domed
Precambrian rock and an overlying sequence of lateCenozoic sediments and lava flows. The sediments are finegrained clastic deposits typical of a shallow inter-tidal
environment. Some contain marine fossils. The lava flows
include basalt, andesite and rhyolite. Some basalt ispillowed, indicative of emplacement underwater, but mostof the lavas are emplaced in a subaerial environment.
(Figures 2 and 3).

4. GEOTHERMAL POTENTIAL IN ERITREA
Proper Geothermal assessment was not carried out to date.
However, as considerable portion of the State of Eritrea islocated within the World's Geothermal Provinces, it isbelieved that the country is well endowed with geothermalenergy.
5. POTENTIAL FOR GEOTHERMAL POWER
GENERATION AND DIRECT USES
The study by the Ministry of Energy and Mines incollaboration with US Geological Survey (USGS) of theAlid Volcano area represents Eritrea’s first attempt toevaluate and promote the use of a geothermal resource. See
below for details.

The age of the Alid structure is unknown, though geologic
and geomorphic relations suggest that uplift and rhyolite
eruption occurred between about 50 and 200 ka.

Based on geological, geochemical and hydrothermal studies
done in the eastern lowland, other thermal springs, which
need further follow-up exist along the Asmara-Massawa
highway and in the Henab area 170 km north of Massawa.

Fumaroles and thermal pools are found in at least 11 small(about 1-2 ha) sites over about 10 km 2 in the depressedsummit region and northern flank of Alid. Most of thesezones are clay-altered and are covered by sublimates ofvarious NH4-, Ca- and K- sulfates. The thermal areas went
through a variety of lithologies, including rhyolites,
siltstones and a small block of Pre-Cambrian mica schistthat crops out in a deep canyon cut into the central part of
the uplift. There are no obvious structural controls on thedistribution of fumaroles. Thermal pools contain mixturesof shallow groundwater and fumarolic condensate. Hot orcold springs unrelated to fumaroles were not found.

There is high demand for geothermal energy in the region
for applications like:•

Improve quality of life through better
illumination, better air quality, improve access toinformation and telecommunications as well as
being a stimulus to business development,•Manufacturing
plant
Refrigeration, distillation
desalination)•(Cement,plants andFish,
water

Results of aforementioned Previous studies strongly suggestthat an upper crustal magmatic and/or hot plutonic body ispresent beneath Alid Mountain.

Resort area (the gulf of Zula has got a highpotential for tourist attraction (historical remains,
animal parks, diving and fishing, hot springs andfumaroles etc.,)•

Enhanced oil recovery;•

Coastal development in line with the newly
constructed Massawa-Assab road etc.,

A variety of gas geothermometers all yield high parent
reservoir temperatures, up to and over 250° C. The geologic
structure and tectonic environment of Alid were consideredhighly favorable for producing and maintaining substantialfracture permeability beneath the mountain and perhaps
even extending north and south somewhat from themountain's base. The overall temperature and permeability
conditions seemed sufficiently favorable for the existenceof an electrical grade geothermal resource for the team torecommend that exploration drilling to depths of 1.5 to 2
km take place.

A well developed geothermal power generation that isconnected to the national grid will have a proportionate
influence in reducing imported oil and thus has the global
benefit of mitigating greenhouse gas emissions.

However, before such deep drilling is undertaken,
additional tasks were suggested in order to select specificdrill sites.

6. GEOTHERMAL ENERGY EXPLORATION INERITREA.

7. PROPOSAL FOR DETAIL SURVEY IN ALIDGEOTHERMAL PROSPECTThe following additional detail survey is recommended tobe carried out before drilling exploratory wells:-

Alid Geothermal Prospect:
Alid area had been identified as a prospect since 1901-02
when Angelo Marini from the Italian Institute for Military
Geography undertook a detail study of Alid and its
surroundings. A number of papers were published byresearchers since then. A reconnaissance survey was carriedout by UNDP in 1973 as part of the geothermal resources
development program. In 1992, the late Prof. Giorgio
Marinelli and a staff member from the Department ofEnergy visited Alid area and prepared proposal for detailstudy.
Geological and geochemical studies were conducted by
USGS and MEM in 1996.
The Alid volcanic area is felt to be the highest near-term
potential geothermal prospect in the country. It is locatedabout 120 km south of Massawa, Eritrea's dominant portcity. (Figure 1)
2•Detailed hydrogeological and fracture pattern
study to determine the recharge area.

•Geophysical study to delineate the reservoir andconfirm the presence of local heat source.

•Drill temperature gradient wells to determine theheat flow direction and thereby the up-flow zone.

•Carry out the study of carbon dioxide and radonin soil gas to help locate zones of highpermeability.

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•8. OTHER GEOTHERMAL PROSPECTS
Aside from Alid, geological, geochemical and hydrothermal
studies done in the eastern lowland have documented theexistence of other thermal springs along the AsmaraMassawa highway, near the Gulf of Zula and in the Henabarea 170 km north of Massawa. The thermal springs along
the Asmara-Massawa highway are on a section of themiddle to lower levels of the western escarpment of the Red
Sea graben. Surface temperature and chemical analyses
have been carried out at the Ali Hasa, Dongolo Basso,Sabarguma and Ailet spring areas. The hydrothermalfeatures at these areas are classified as warm and hotsprings (defined based on their temperatures being lower orhigher than 50° C). They issue near-neutral waters with low
chemical contents. All of the springs are of low energy
exhibiting quiet flow with no steam separation or gas
evolution.

Eritrea has an ample supply of artisans and semi-skilledcraftsmen, although technical experts and highly skilled
professionals and managers are in short supply. The
Government and international donor agencies are trying to
remedy the situation with domestic and external training
courses. As the government improves infrastructure and as
foreign investment increases, skilled professionals of theEritrean Diaspora are likely to begin to return home ingreater numbers.
Eritrean legal documents ask contractors to give preference
to the employment of Eritrean nationals to the fullest extent
possible, provided, such nationals have the required
qualifications and experience. If an Eritrean national cannot
be found with qualifications and skills suitable to fill aposition the licensee may employ a qualified foreign
national (Mining law article 29(1)).

9. PROPOSED RECONNAISSANCE SURVEY
Other than Alid reconnaissance survey is needed to assess
the geothermal energy potential of the country. The
proposed study area includes the Eastern escarpment wherelow enthalpy geothermal springs are manifested andstretches SSE crossing the Zula bay up to Erireaa-Djibouti
border.

The process of investor certification has been centralized
under the authority of the Eritrean Investment Center. The
Investment Proclamation specifically requires the center toissue certification within ten days from the completion by
the investor of the required formalities. The Investment
Proclamation eliminates the requirement for joint venturesor acquisition of Eritrean partners. Projects can be wholly
owned by private foreign companies. Projects are examinedto ensure they include training Eritrean staff to replace
expatriate workers and that projects will not negatively
effect the environment or local conditions.

The study is proposed to include:•Maintenance of foreign currency accounts inbanks in Eritrea.

Interpretation of aerial photos, satellite images,
Regional Geological mapping, Hydrogeologicalmapping, Geochemistry and Geophysics.

Official approval authorization for private projects is vested
with the Eritrean Investment Center. In practice, large-scale
projects are usually reviewed and approved by theappropriate minister or Office of the President.

10. GEOTHERMAL LAW
Geothermal resources are governed under mineral mining
laws (section III, article 18(3) of Proclamation
No.68/1995).

Foreign investors are offered further protection as a resultof the Government of Eritrea seeking appropriate bilateraland multilateral investment protection or guarantee treaties,
specifically MIGA (Multilateral Investment Guarantee
Agency) and ICSID (International Center for the Settlementof Investment Disputes), or the Washington Convention.

Key policies upon which the Mining Law (including
geothermal exploration) is based include:•The duty of the Government to ensure theconservation and sustainable development ofmineral resources (which are public property) forthe benefit of the Eritrean people;•The right to exploit any commercial discoveries
made pursuant to a valid exploration license.

•A simple and fair taxation system which
recognizes the risky nature of mining
investments, and hence allows:•Write-offs of exploration expenditure incurredanywhere in the country;•Generous reinvestment deduction (5% of grossincome); No dividend tax;

•A nominal rate of import duty (0.5%) on all
inputs necessary for mining operations.

•Equitablepermitting:•Free and unrestricted repatriation of earnings;

IPP will have the opportunity to negotiate for powerpurchase agreement.

•Retention of a portion of foreign currency
earnings abroad in external accounts;

The electricity tariff will be based on a reasonable Rate ofReturn.

foreignexchange

On May 1, 1998 the National Bank of Eritrea adopted afree-floating exchange rate. According to the regulationeach bank will set the exchange rate at which anyone canconvert Nakfa, the Eritrean currency, to hard currencies.
The Investment Proclamation maintains that investments
are protected from nationalization, confiscation, seizure, orexpropriation. Foreign investors are offered furtherprotection as a result of the Government of Eritrea seeking
appropriate bilateral and multilateral investment protection
or guarantee treaties, specifically MIGA (Multilateral
Investment Guarantee Agency) and ICSID (InternationalCenter for the Settlement of Investment Disputes), or theWashington Convention.
11. INDEPENDENT POWER PRODUCER
The newly drafted legal frame-work which is soon to bepromulgated will have positive impact on the private sector.

regulations

3AbrahaTowards this end the Ministry of Energy and Mines invites
interested Geothermal Companies and financiers toparticipate in geothermal exploration and development.

12.
GOVERNMENTCOMMITMENTIN
DEVELOPING GEOTHERMAL ENERGY
If a Private Company discovers geothermal energy anddevelops it, the Eritrean Electric Authority (EEA) can be apartner and willing to assist in developing the resource.

REFERENCES
Barberi, F., and Varet, J., 1970, The Erta Ale volcanic
range (Danakil Depression), Northern Afar, Ethiopia:
Bulletin Volcanlologique, v. 34, p. 848-917.

Transmission line from the geothermal power plant can beconnected to the existing EEA grid system.

Beyth, M., 1994, A brief assessment of the Alid geothermal
field: Report ES-10-94 of the Israel Ministry of Energyand Infrastructure, 11p.

13. CONCLUSION AND RECOMMENDATION•

The legal frame-work for exploring geothermalenergy is in place and encourages Private Sector
involvement.

•The studies carried out have indicated theprospectivity of the geothermal energy in thecountry.

•The energy demand of the nation is high.

Clynne, M.A., Duffield, W.A., Fournier, R.O.,
Woldegiorgis, L., Janik, C.J., Kahsai, G., Lowenstern,J., Mariam, K., Smith, J.G. and Tesfai, T. (1996a).
Geothermal potential of the Alid volcanic center,
Danakil Depression, Eritrea. Final Report to the U.S
Agency for International Development. 46pp.
Marinelli, G., Quaia, R., and Santacroce, R., 1980,
Volcanism and spreading in the northernmost segmentof the Afar Rift (Gulf of Zula): Accademia Nazionale
dei Lincei 47.

In order to move ahead with geothermal exploration anddevelopment in Eritrea, it is important to build on work
already done and carry out further analyses which, if
successful, should lead to exploratory drilling at one ormore sites.

Souriot, T., and Brun, J., 1992, Faulting and block rotationin the Afar triangle, East Africa: The Danakil “crankarm” model: Geology, v.20, p.911-914.

Since the geothermal resource at Alid is yet to be
confirmed, further exploration and analysis is required.

Figure 1: Alid geothermal project, location map.

4

AbrahaFigure 2: Generealized geologic map of Alid volcanic center (after Clynne et al. 1997).

Figure 3: Schematic cross section of Alid volcanic center (after Clynne et al., 1997).
5AbrahaFigure 4: Overview of geothermal areas in Eritrea.

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