KenGen to Build $155 Million Green Hydrogen Plant in Kenya
Key Ideas
  • KenGen, with financing from Germany, is embarking on a $155 million green hydrogen plant project to locally produce fertilizer and promote clean energy exports.
  • The project is part of a larger climate and development partnership between Kenya and Germany, aiming to spur green industrial growth, create job opportunities, and combat climate change.
  • The implementation of green hydrogen technologies like electrolysis demonstrates Kenya's commitment to sustainability and becoming a global hub for clean energy development.
  • Germany's investment of nearly $370 million in green hydrogen markets in developing countries, including Kenya, highlights the potential for economic growth and environmental stewardship in the region.
Kenya's power generating company KenGen is partnering with Germany to construct a KSh 17 billion (approximately $155 million) 100MW green hydrogen plant in Nairobi. This green hydrogen facility, funded through concessional financing, aims to produce green hydrogen through electrolysis using renewable energy sources. The project aligns with a climate and development partnership established by Kenya and Germany in 2022, focusing on developing a green hydrogen value chain for local fertilizer production. The initiative also includes setting up a fertiliser plant by the private sector in Kenya. During the Eastern Africa Regional Green Hydrogen Symposium, Cabinet Secretary Energy and Petroleum Opiyo Wandayi emphasized Kenya's potential to become a global clean energy hub by leveraging green hydrogen technologies like green ammonia and methanol. KenGen issued a request for proposals for a feasibility study, with plans to implement the project following the visit of Germany's then chancellor, Olaf Scholz. The symposium highlighted the importance of green industrial growth, job creation, and accelerating renewable energy development in Eastern Africa. Ambassador of Germany to Kenya, Sebastian Groth, emphasized the need for a conducive business environment with stable regulations to unlock new job opportunities and drive economic development through green hydrogen. Germany plans to allocate nearly KSh 40 billion for Power-to-Green Hydrogen markets in developing countries, emphasizing the role of green hydrogen in economic growth and environmental sustainability.
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