Germany and Kenya Collaborate to Drive Green Hydrogen Development in Eastern Africa
Key Ideas
- Germany and Kenya have initiated a partnership to develop a green hydrogen value chain in Kenya aimed at producing local fertilizer and promoting economic growth.
- Germany has committed significant financial support, including over Ksh.17 billion in financing for a 100 MW green hydrogen plant and the establishment of a Ksh40 billion Development Fund to support green hydrogen markets in developing countries.
- Key stakeholders from Eastern Africa and beyond are coming together to create a vision for a green hydrogen ecosystem that fosters industrial decarbonization, clean energy exports, and climate-smart development.
- Kenya is focusing on building environmentally sustainable and socially inclusive projects by engaging with global technology leaders and multilateral financiers while finalizing its National Energy Policy.
The German government and Kenya have embarked on a partnership to address regulatory challenges hindering the development of green hydrogen in Kenya. The collaboration, which began in 2022, aims to establish a green hydrogen value chain in the country to produce local fertilizer, boost economic growth, and enhance sustainability. Germany has pledged substantial financial support, with commitments exceeding Ksh.17 billion for a 100 MW green hydrogen plant. Additionally, a Ksh40 billion Development Fund has been set up to bolster green hydrogen markets in developing nations, with a focus on mature industrial-scale projects. Eligible countries in Africa include Egypt, Kenya, Morocco, and South Africa, with plans for expansion. The initiative aims to drive green industrial growth, create jobs, enhance food security through local fertilizer production, and accelerate renewable energy development.
The dialogue between Germany and Kenya emphasizes the importance of stable and predictable regulations to unlock business potential and drive job creation. The two countries are working towards a conducive business environment to support the growth of green hydrogen. Kenya's Energy and Petroleum Cabinet Secretary highlighted the significance of green hydrogen in achieving a resilient, industrial, and sustainable Africa. The symposium held brought together various stakeholders to collaborate on a shared vision for a green hydrogen ecosystem that is inclusive, equitable, and regionally integrated.
Kenya is in the process of finalizing its National Energy Policy and is actively engaging with global technology leaders, multilateral financiers, and domestic innovators to develop environmentally sound and socially inclusive projects. The focus is on building bankable projects that promote clean energy exports, industrial decarbonization, and climate-smart development, positioning Kenya as a global hub for clean energy and innovation.