- The Government of Kenya and Fortescue Future Industries (FFI) have signed a binding Framework Agreement on the sidelines of COP27 to fast-track Kenya’s development of an affordable green fertiliser supply chain and other green hydrogen-based industries and its derivatives.
For Kenya this will create fossil fuel free fertiliser, a strong local industry, skilled job creation, and lessen Kenya’s exposure to imports from foreign nations.
Under the Agreement, FFI and the Government of Kenya will work together to develop by 2025 a 300MW capacity generation green ammonia and green fertiliser facility. This aims to provide affordable green fertiliser to the domestic market and address food security, while also negating the need for importing equivalent amounts of fertiliser.
The parties intend that this will be followed by the commencement of feasibility studies for two further projects that could scale up renewable electricity generation for green industries by up to 25GW, which could ultimately produce up to 1.7 million tonnes of green hydrogen per year for export.
The Kenyan President and Fortescue Executive Chairman first discussed the Agreement during their meeting at the UN General Assembly in New York in September 2022.
The Agreement will entrench FFI’s commitment to fast-track significant investment to develop green industrial facilities in Naivasha, Mombasa and Lamu, with the potential to create thousands of new jobs and deliver significant manufacturing and industrial development to Kenya.
The initial green hydrogen and green ammonia facility to be located in the Naivasha vicinity of the Olkaria geothermal field will move to a pre-feasibility study, with a Final Investment Decision from FFI expected in 2023.
His Excellency President Dr William Ruto said, “Today marks the beginning of what we all believe will be a long and fruitful partnership between Kenya and FFI. I was elected on a platform of creating opportunities for local industries, local businesses and communities. “This Agreement will help to achieve that and help to support further economic and infrastructure development in Kenya.
“There is nowhere more important for us to mark the public beginning of this relationship than here in Sharm El-Sheikh, on the opening day of COP27 where we want to see action, not words.
“We are committed to Kenya being a leader of renewable energy in Africa. We look forward to partnering with FFI to accelerate the global energy transition for the benefit of the Continent.”
Dr Forrest said, “Current ammonia and fertiliser production relies almost exclusively on fossil fuels and results in considerable CO2 emissions.
“By stepping away from fossil fuels to use green ammonia, Kenya can eliminate its reliance on imports, reduce the cost of fertiliser and increase its food and economic security.
“Today’s agreement sets Kenya on a path to industrial decarbonisation and we are committed to walk with Kenya on that journey every step of the way.”
Author: Bryan Groenendaal