The Rwandan government is planning to invest up to $935 million in a geothermal power project that is expected to generate some 310 megawatts of power for local and regional use when it is completed in seven years time, Rwanda 's energy ministry said Tuesday.

In a statement, the ministry said that geothermal targets have already been identified between Gisenyi, Karisimbi Volcano and Bugarama, all in the country's western rift valley. "The initial project will cost $30.2 million for drilling three exploration wells and doing the site preparation," the ministry said.

Government officials say that the East African Rift Valley, which stretches from Sudan through Malawi provides one of the most suitable sites for geothermal activities because it has the world's hottest rocks. Geothermal power is generated by steam trapped underneath hot rocks.

Rwanda is in dire need of electricity to power its processing plants, dealing mainly in raw commodities like coffee and tea as well as minerals like tin ores, wolfram, coltan and gold.

Rwanda which currently generates around 120 MW of power is implementing a pilot project to extract methane gas to fire power plants aimed at generating at least 25 MW by 2012.

According to the infrastructure ministry, initial estimates suggest methane extraction could support electricity plants with the capacity to generate 500-800 MW, for 40 years.

Rwanda and Congo are planning to ramp up generation from the pilot methane gas project to supply at least 200 MW to Rwanda as well mineral-rich but restive North Kivu province, in the next four years.

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