- KenGen’s Kenyan plant and China’s Kaishan Group will produce between 200,000 and 300,000 tons of green fertilizer per year.
- It is predicted to avoid more than 600,000 tons of carbon dioxide emissions per year and increase KenGen’s annual revenues by approximately $13 million.
- Kenya’s green fertilizer plant will also make the East African country the first in Africa to industrialize fertilizer production using renewable energy.
The race to tap green energy sources in Africa has intensified as Kenya’s KenGen partners with China’s Kaishan Group to tap geothermal energy for green fertilizer production.
A week ago, power producer KenGen entered into a steam offtake agreement with Kaishan Group to harness geothermal energy at the Ol Karia site in Naivasha for green manure production.
The investment will harness geothermal energy to produce green ammonia and fertilizer, helping Kenya’s agricultural sector save costs on key agricultural inputs, which largely come from the overseas market.
Under the agreement, KenGen will supply steam from the Olkaria geothermal field to the 165 MW plant to be built and operated by Kaishan through its local subsidiary Kaisan Terra Green Ammonia Ltd for a period of 30 years.
Also read: Green energy revolution in Kenya: how solar energy is transforming rural communities
2000 jobs at green fertilizer factory
Forecasts show that the factory, which is expected to create 2,000 direct and indirect jobs, will produce between 200,000 and 300,000 tonnes of green manure per year. It is predicted that over 600,000 tonnes of carbon dioxide emissions will be avoided and increased annually Song’s annual income by approximately $13 million.
“This project shows that Kenya is not only a leading producer and consumer of clean energy, we are now moving further to add value and generate wealth from it,” President William Ruto said at the groundbreaking ceremony on Monday.
“Our agriculture is highly dependent on fertilizer prices, with high prices leading to a decline in maize production nationally. As we know, maize is the staple crop that feeds millions of Kenyans. Therefore, domestic, competitively priced fertilizers are important not only for trade but also for the food security of our people.”
Besides stabilizing fertilizer prices, the President noted that the project will generate jobs in construction, operations, maintenance, supply chain and other services in the country. It provides a career pipeline for electricians, engineers, plant operators, laboratory technicians and local suppliers.
Kenya’s green fertilizer plant will also make the East African country the first in Africa to industrialize fertilizer production using renewable energy.
“This project shows that Kenya is not just a leading producer and consumer of clean energy – we are now going further to add value and generate wealth from it. By harnessing our geothermal wealth, we reduce the cost of fertilizer, support our farmers and contribute to global climate goals,” said Dr. Ruto.
Costs of fertilizer
The President added that the cost of fertilizers directly affects agriculture, especially corn farming, which is a staple crop and a mainstay of the economy.
“Our agriculture is highly dependent on fertilizer prices. High costs lead to reduced maize production, affecting millions of Kenyans. Domestic, competitively priced fertilizer is vital not only for trade but also for food security,” he added.
The Olkaria Green Fertilizer Project is in line with the government’s Bottom-Up Economic Transformation Agenda (BETA), which focuses on local value addition, job creation and food system resilience. It also promotes the Africa Green Industrialization Initiative launched at COP28 to accelerate green manufacturing on the continent.
KenGen CEO Ing. Calling the partnership a “milestone in clean industrialization,” Peter Njenga said geothermal energy is the bridge between Africa’s green potential and the future of manufacturing.
“Kenya’s leadership in geothermal energy gives the country a unique advantage in pioneering low-carbon production models for the Global South,” he said.
Also read: Geothermal energy: Tanzania’s renewed push for green energy
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