Kenya Seeks Financing for Green Hydrogen Investments
Key Ideas
- Kenya plans to raise Ksh 130 billion through blended financing to invest in green hydrogen for fertilizer and ethanol production, and decarbonizing transport.
- The country and East African region require Ksh 1.2 trillion to develop green hydrogen plants sustainably.
- The government is seeking regional cooperation and private equity to meet funding requirements in the next five years.
- Germany pledges Ksh 17 billion for a 100 MW green hydrogen plant in Kenya, with four African countries applying for Ksh 40 billion in grants.
Kenya is making significant strides in the development of green hydrogen to boost various sectors and reduce carbon emissions. Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced plans to secure Ksh 130 billion through blended financing to invest in green hydrogen for enhancing fertilizer and ethanol production as well as decarbonizing the road transport sector. The government aims to leverage the sustainable production of green hydrogen, which emits lower greenhouse gases compared to grey hydrogen derived from fossil fuels. To achieve this, Kenya and the East African region collectively require around Ksh 1.2 trillion to establish and make operational green hydrogen plants. Energy leaders from the East African Community (EAC) are advocating for collaborative efforts to finance these green hydrogen projects. Wandayi emphasized the need for increased regional cooperation and private equity involvement to secure the necessary funding within the next five years. The German government has shown support by committing Ksh 17 billion in concessional financing and grants to facilitate the construction of a 100 MW green hydrogen plant in Kenya. Additionally, Kenya is one of four African countries that have requested Ksh 40 billion in grants to bolster green hydrogen markets. These initiatives highlight a positive momentum towards sustainable energy development in Kenya and the wider region.