Posted on September, 6, 2023 at 09:15 am
Kenya aims to foster a green hydrogen industry to help counter food insecurity and decrease its dependence on fertiliser imports/
The country's hydrogen roadmap, released by the Kenyan energy ministry today, lays down targets and action points until 2032.
In a first phase, Kenya plans to have the first commercial-scale green hydrogen projects operating by 2027, when it aims to reach 100MW of installed electrolyser capacity. This could support production of 100,000 t/yr of nitrogen fertilisers, which can replace around 20pc of Kenya's current fertiliser imports, according to the ministry.
By 2027, the country wants to replace all its methanol imports or around 5,000 t/yr with "domestically produced green alternatives". Renewable hydrogen can be used to produce synthetic methanol, called e-methanol.
Relevant policy and regulatory instruments are expected to be enacted by then.
During the second stage of its roadmap, which runs from 2028 to 2032, Kenya targets between 150-250MW of installed electrolyser capacity, with the aim of lifting domestic fertiliser production to up to 400,000 t/yr.
Throughout this period the country should explore opportunities for exporting green fertilisers within the region, the ministry said. Hydrogen industry participants see domestic offtake for renewable hydrogen in African countries as a possibility "now and in the near future", given their high reliance on imports. Projects targeting exports, on the other hand, may take longer to find buyers and reach financial closure.
Production of green shipping fuels is planned to start in the second phase, alongside pilot projects utilising hydrogen in other sectors including power and transport.
Kenyan President William Ruto said a green hydrogen economy will help decarbonise the country's industrial activity and "enhance food security, including expansion of green production of Kenyan tea, coffee, horticulture, floriculture and grains."
Additional renewable power capacity used for green hydrogen production could reach 450MW by 2032.
Kenya currently has 90pc of its electricity supplied from renewable sources and it aims to achieve 100pc by 2030, partly by leveraging geothermal generation capacity.
Kenya's hydrogen strategy is supported by the EU's Global Gateway international investment scheme, which will see the bloc disburse nearly €12mn in grants. Germany is separately providing a loan of €60mn to support green fertiliser production, and the European Investment Bank is collaborating with Kenya's green hydrogen efforts, Ruto said.
But more engagement from international financial institutions will be needed to meet the production targets, according to the ministry. The government expects more than $1bn direct investment in green hydrogen by 2032 and said "blended financing and innovative financial instruments" will be key to enable growth in the industry.
Source: Argus