Renson Mwakandana
Dr. William Ruto, President of Kenya, and Dr. Andrew Forrest, Executive Chairman of Fortescue, witnessed the signing of a legally binding Framework Agreement between the Government of Kenya and Fortescue Future Industries (FFI) on the sidelines of COP27 in a significant effort to replace imported polluting fertilizer.
The Agreement intends to hasten Kenya’s establishment of a competitive green fertilizer supply chain as well as other environmentally friendly hydrogen-based industries and its byproducts. This will benefit Kenya by producing fertilizer free of fossil fuels, strengthening local industries, creating skilled jobs, and reducing Kenya’s dependence on imports from other countries.
The Agreement was originally discussed by the President of Kenya and the Executive Chairman of Fortescue while they were in New York for the UN General Assembly in September 2022.
The Agreement will solidify FFI’s commitment to accelerate major investment in the construction of green industrial facilities in Naivasha, Mombasa, and Lamu, with the potential to provide significant manufacturing and industrial development to Kenya and the creation of thousands of new jobs.
A pre-feasibility study will be conducted for the inaugural green hydrogen and green ammonia complex that will be built near the Olkaria geothermal resource in the Naivasha area. A final investment decision by FFI is anticipated in 2023.
“Today marks the beginning of what we all believe will be a long and fruitful partnership between Kenya and FFI,” Ruto said.
“I was elected on a platform of creating opportunities for local industries, local businesses and communities. This Agreement will help to achieve that and help to support further economic and infrastructure development in Kenya,” he added.
According to Dr. Forrest, the manufacture of ammonia and fertilizers now produces a significant amount of CO2 emissions and relies nearly entirely on fossil fuels.
“By stepping away from fossil fuels to use green ammonia, Kenya can eliminate its reliance on imports, reduce the cost of fertilizer and increase its food and economic security.”
“Today’s agreement sets Kenya on a path to industrial decarbonizationand we are committed to walk with Kenya on that journey every step of the way,” he added.
