Australian Firm to Set up Green Energy, Fertilizer Factory in Olkaria

Fortescue Metals, an Australian company, will begin building a 300 Megawatt (MW) green ammonia plant this year that will also produce fertilizer, supporting Kenya’s transition to clean energy and reducing fertilizer imports.

The business announced on Thursday that the multi-billion dollar project, which will be Kenya’s first green ammonia energy generation, had entered planning stages.

As soon as it is finished, the facility will augment Kenya’s expanding renewable energy production, helping to lower the cost of farming and increasing load during times of peak demand.

“We will make a final investment decision so that we can start the project this year. The plant will provide power to the national grid during peak demand and also reduce the billions that flow out of the economy in paying for fertilizer imports,” said the company.

The cost of the plant that would be constructed inside the Olkaria Geothermal wells near Naivasha was not disclosed by the company, though.

Kenya has increased its investments in renewable energy, particularly geothermal, wind, and solar, in an effort to secure a source of less expensive power while also reducing environmental pollution from fossil fuels.

953.7 megawatts, or 28.04 percent, of Kenya’s installed capacity comes from geothermal energy, with hydropower making up the remaining 25 percent.

As of December 2022, wind and solar contribute 12.82 and 7.83 percent, respectively.

The 300 MW plant’s production of green fertilizer will be essential for reducing the expenses farmers experience while acquiring inputs.

Because they are produced using clean energy, green fertilizers contain less carbon than nitrate-based fertilizers.