The Government of Kenya and Fortescue Future Industries (FFI) inked a Framework Agreement to replace imported polluting fertiliser.
In a statement, FFI said the Agreement intends to hasten Kenya’s establishment of a competitive green fertiliser supply chain and other environmentally friendly hydrogen-based industries and its byproducts.
The move will benefit Kenya by producing fertiliser free of fossil fuels, strengthening local industries, creating skilled jobs, and reducing Kenya’s dependence on imports from other countries.
According to the Agreement, FFI and the Government of Kenya will collaborate to build a 300MW green ammonia and green fertiliser complex by 2025. This eliminates the need to import similar quantities of fertiliser while supplying domestic consumers with affordable green fertiliser and addressing food security.
The parties envisage that two further projects, which may scale up renewable energy generation for green industries by up to 25GW and ultimately produce up to 1.7 million tonnes of green hydrogen per year for export, will begin feasibility studies after that.
The Agreement was initially discussed by Kenyan President HE Dr William Ruto CGH and Fortescue Executive Chairman Dr Andrew Forrest while they were in New York for the UN General Assembly in September 2022.
It will solidify FFI’s commitment to accelerating significant investment in the development of green industrial facilities in Naivasha, Mombasa, and Lamu, with the potential to deliver substantial manufacturing and industrial development to Kenya and the creation of thousands of new jobs.
The initial green hydrogen and green ammonia project, which will be constructed near the Olkaria geothermal resource in Naivasha, will progress to a pre-feasibility study, with a Final Investment Decision from FFI expected in 2023.
“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,” President Ruto said.
President Ruto stated that there is no better place to celebrate the public start of this collaboration than in Sharm El-Sheikh, on the first day of COP27, where they 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,” the President added.
According to Dr Forrest, current ammonia and fertiliser production are almost entirely based on fossil fuels, resulting in significant CO2 emissions.
“By stepping away from fossil fuels to use green, Kenya can eliminate reliance on imports, reduce the cost of fertiliser and increase its food and economic security. Today’s agreement sets Kenta on a path to industrial decarbonisation, and we are committed to walk with Kenya on that journey every step of the way,” Dr Forrest added.
 inked a Framework Agreement to replace imported polluting fertiliser.){kind=link}