PERTH (miningweekly.com) – Green energy developer Fortescue Future Industries (FFI) has signed a binding framework agreement with the government of Kenya on the sidelines of COP27 to fast-track Kenya’s development of an affordable green fertiliser supply chain and other green hydrogen-based industries and its derivatives.

The signing of the Framework Agreement was witnessed by Kenyan President Dr William Ruto and Fortescue executive chairperson Dr Andrew Forrest.

Under the agreement, FFI and the government of Kenya will work together to develop a 300 MW capacity generation green ammonia and green fertiliser facility by 2025. This aims to provide affordable green fertiliser to the domestic market and address food security, while also negating the need for importing equivalent amounts of fertiliser.

The parties intend that this will be followed by the commencement of feasibility studies for two further projects that could scale up renewable electricity generation for green industries by up to 25 GW, which could ultimately produce up to 1.7-million tonnes of green hydrogen a year for export.

For Kenya this will create fossil fuel free fertiliser, a strong local industry and skilled jobs, while lessening Kenya’s exposure to imports from foreign nations, FFI said in a statement on Tuesday.

The initial green hydrogen and green ammonia facility to be located in the Naivasha vicinity of the Olkaria geothermal field will move to a prefeasibility study, with a final investment decision from FFI expected in 2023.  

“Today marks the beginning of what we all believe will be a long and fruitful partnership between Kenya and FFI. I was elected on a platform of creating opportunities for local industries, local businesses and communities,” Ruto said.

“This agreement will help to achieve that and help to support further economic and infrastructure development in Kenya. There is nowhere more important for us to mark the public beginning of this relationship than here in Sharm El-Sheikh, on the opening day of COP27 where we want to see action, not words.

“We are committed to Kenya being a leader of renewable energy in Africa. We look forward to partnering with FFI to accelerate the global energy transition for the benefit of the Continent.”

Forrest pointed out that current ammonia and fertiliser production relies almost exclusively on fossil fuels and results in considerable carbon dioxide emissions.

“By stepping away from fossil fuels to use green ammonia, Kenya can eliminate its reliance on imports, reduce the cost of fertiliser and increase its food and economic security.

“Today’s agreement sets Kenya on a path to industrial decarbonisation and we are committed to walk with Kenya on that journey every step of the way,” he said.