- Chinese engineering firm Kaishan Group Co. Ltd, through its subsidiary Kaishan Terra Green Ammonia Limited, has signed a steam supply agreement with Kenya Electricity Generating Company (KenGen) for a planned 165.4 MW geothermal power plant that will produce 100,000 tons of green ammonia and fertilizer annually.
The agreement was signed at the Ministry of Energy in Nairobi in the presence of Dr. Tang Yan, Managing Director of Kaishan Group; Eng. Peter Njenga, CEO and General Manager of KenGen; and Hon. J. Opiyo Wandayi, EGH, Kenya’s Minister of Energy.
Under the deal, Kaishan will construct and operate the power plant, which will receive steam from KenGen’s existing geothermal fields. The project represents a major step in leveraging Kenya’s renewable energy potential for sustainable industrial development.
With an estimated investment of USD 800 million, the facility is projected to generate between USD 220 million and USD 250 million in annual revenue once operational. It will utilise geothermal energy to produce green ammonia, which will then be used to manufacture urea and calcium ammonium nitrate fertilisers, providing an eco-friendly alternative to conventional fertiliser production.
Kaishan Group said the project aligns with its mission to become a “major global player in green hydrogen and ammonia development and operations.” The company highlighted that while many green ammonia initiatives rely on solar and wind power, few have reached implementation due to the high costs and technical challenges of energy storage.
By using geothermal power—a constant and reliable renewable source—Kaishan aims to demonstrate a viable pathway for producing hydrogen and green ammonia without the need for large-scale storage solutions. The firm believes that integrating geothermal, wind, and solar power could open a new frontier in the global hydrogen energy industry.
Kaishan already has a growing footprint in East Africa. In Kenya, it owns OrPower 22, which is developing a 35 MW geothermal plant in Menengai, and through its subsidiary KS Orka Renewables Pte. Ltd., it has also acquired the Sorik Marapi geothermal power plant in Indonesia.
Author: Bryan Groenendaal
