Australia’s Fortescue Future Industries (FFI) has signed a binding framework agreement with the Government of Kenya with an aim to fast-track the country’s development of an affordable green fertiliser supply chain and other hydrogen-based industries and its derivatives.
The agreement was signed on 8 November on the sidelines of the 2022 United Nations Climate Change Conference ( COP27 ) being held in Egypt.
For Kenya, the agreement will create fossil fuel-free fertiliser, a strong local industry, skilled job creation, and lessen the country’s exposure to imports from foreign nations.
Specifically, FFI and the Government of Kenya will work together to develop a 300MW capacity generation green ammonia and green fertiliser facility by 2025.
The parties plan to follow this by commencing 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.
According to FFI, the agreement will entrench its commitment to accelerate 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.
The President of Kenya, William Ruto , commented: “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.”
Executive Chairman of Fortescue, Andrew Forrest , added: “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. “