The deal was inked on the same day that the European Union announced its intention to invest Sh2.7 billion in Kenya’s “Green Resilient Electricity System” project, which is a green energy initiative.
According to State House spokesman Hussein Mohamed, the Kenyan-Australian plant will utilize Olkaria’s geothermal resources as part of Kenya’s ongoing efforts to reduce the manufacturing of fossil-based fertilizers, which is a substantial source of greenhouse gas emissions.
The State House spokesman reported via a statement that “the project will also contribute electricity to Kenya’s grid, accelerating the phase-out of fossil fuels and reinforcing Kenya’s position as a global leader in renewable energy”.
The deal was signed at State House in Nairobi by the cabinet secretaries for energy and the national treasury, Davis Chirchir, and Njuguna Ndungu, as well as Andrew Forrest, the executive chairman of FFI.
It is the first of three initiatives that FFI, a division of Fortescue Metals Group in Australia, will fund to assist green energy and manufacturing in Kenya.
The agreement strengthens Kenya’s resolve to promote the development of environmentally friendly, sustainable sectors in the country.
According to Mohamed, the project and its further improvements will support Kenya’s economy and food security while also assisting the nation in meeting its goals to reduce greenhouse gas emissions.
As previously reported, the EU committed to the “Green Resilient Electricity System” initiative, which will use the funds to improve the country’s transmission system and encourage new green electricity generation through a network of power companies.
According to Martin Andersen, the EU’s ambassador in Kenya, they will work with the German Development Bank on the project (KfW).
According to Martin Andersen, “this project would assist additional green electricity generation, boost the transmission system, and aid Kenya’s goal to have a 100% green electricity system by 2030.
Andersen noted that a roadmap and plan are being developed for the nation’s usage of green hydrogen in cooperation with other interested parties. According to him, the development of the green hydrogen industry might lead to new business ventures and a significant increase in employment, particularly in the fertilizer industry.