KenGen eyes Sh1.7 billion profit from green fertilizer factory
Under the agreement, Kaishan’s Kenyan subsidiary, Kaishan Terra Green Ammonia Limited, will construct and operate the facility using 165MW of geothermal energy supplied by KenGen over a 30-year period.
KenGen projects to earn KES1.7 billion ($13 million) from the production of green fertilizer while helping stabilize the cost of the key farm input from its new venture with China's Kaishan Group at Naivasha.
Under the agreement, Kaishan’s Kenyan subsidiary, Kaishan Terra Green Ammonia Limited, will construct and operate the facility using 165MW of geothermal energy supplied by KenGen over a 30-year period. In a groundbreaking ceremony graced by President William Ruto on Monday at Naivasha, KenGen announced Kaishan Group to tap steam to produce 300,000 tonnes of green fertilizer annually.
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The fertilizer plant will be receiving steam from KenGen’s operational geothermal fields in Ol Karia.
The green fertilizer manufacturing project, which is expected to give rise to 2000 direct and indirect jobs is estimated to cost about $800 million. According the KenGen, the project will tap geothermal power for the manufacture of green ammonia, as well as urea and calcium ammonium nitrate for the production of fertilizers.
"This project shows that Kenya is not just a producer and consumer of clean energy, we are now going further to add value and generate prosperity from it," said Dr. Ruto, adding that: "By harnessing our geothermal wealth, we are lowering fertilizer costs, supporting our farmers, and contributing to global climate goals."
Dr. Ruto noted that the project, which will tap 165MW of geothermal power to synthesize green ammonia and turn it into fertilizer, is projected to prevent more than 600,000 tonnes of carbon dioxide emissions annually.
China's Kaishan Group says it is on a mission to become “a major global player in green hydrogen and ammonia development and operations.”
Already, the firm has presence in Kenya with the purchase of a stake in OrPower 22, an energy company that is constructing a 35-MW geothermal power plant in Menengai, Nakuru County.
KenGen Managing Director Eng. Peter Njenga lauded the partnership as a "milestone in clean industrialization," adding that green energy is a "bridge between Africa's green energy potential and its manufacturing future."
