The agreement was signed on the same day the European Union committed to invest Sh2.7 billion in a green energy project in Kenya dubbed the “Green Resilient Electricity System” project.
The Kenya-Autralian facility will use Olkaria’s geothermal resources, according to State House spokesman Hussein Mohamed, as part of Kenya’s ongoing efforts to reduce the production of fossil-based fertilizers, which are a significant source of greenhouse gas emissions.
“The project will also supply electricity to Kenya’s grid, accelerating the phasing out of fossil fuels and strengthening Kenya’s position as a global leader in renewable energy,” tState House spokesman relayed through a statement.
Cabinet Secretaries for Energy and National Treasury, Davis Chirchir and Njuguna Ndungu, as well as FFI executive chairman Andrew Forrest, signed the agreement at State House in Nairobi.
This is the first of three projects that FFI, a unit of Australia’s Fortescue Metals Group, will invest in to support manufacturing and green energy in Kenya.
The deal helps strengthen Kenya’s commitment to promoting environmentally friendly and sustainable industrial growth in the country.
According to Mohamed, the project and subsequent developments will help Kenya meet its greenhouse gas reduction commitments as well as improve the country’s economy and food security.
The “Green Sustainable Electricity System” project, promised by the European Union, as mentioned above, will use the money to strengthen the country’s transmission system and support the generation of new green electricity through the network of electricity companies.
Martin Andersen, the representative of the European Union in Kenya, announced that he will cooperate in the project with the German Development Bank (KfW).
“This project will support the generation of new green electricity and strengthen the transmission system and help Kenya’s ambition for a 100% green electricity system by 2030,” Martin Andersen noted.
Andersen added that the EU is working with other interested parties to create a road map and strategy for the use of green hydrogen in the country. “Green Hydrogen is a new sector that can create new business opportunities for the country and become a job creator especially in fertilizer production,” said.