Government collaborates with FFI to establish green fertilizer plant
The government has entered a partnership with Fortescue Future Industries (FFI) to establish a green fertilizer plant in the country in a bid to reduce reliance on imports.
Under the agreement, FFI and the Government will work together to build a 300 megawatts(MW)capacity generation green ammonia and green fertilizer facility by 2025.
This will be followed by the development of two further projects that will scale up renewable electricity generation for green industries by up to 25 gigawatts(GW), to produce up to 1.7 million tonnes of green hydrogen per year for export.
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.
Speaking after signing the agreement on the sidelines of COP27, President William Ruto said this agreement will help in creating opportunities for local industries, local businesses, and communities.
“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,” said Ruto.
On his part, Executive Chairman of Fortescue Andrew Forrest said the agreement sets Kenya on a path to industrial decarbonization and committed to walking with Kenya on that journey.
“Current ammonia and fertilizer 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 fertilizer and increase its food and economic security,” said Forrest.
Access to fertilizer has been a prominent threat to farmers in the country, with its prices spiking occasioned by global phenomena such as the Covid-19 pandemic and the Russia-Ukraine conflict.
The president on September 13, 2022 told the country that his government, through subsidies, had reduced the cost of fertilizer from KES 6,500 to KES 3,500 for a 50-kilogram bag.