Uganda Takes Climate Action With $400m Green Hydrogen Fertiliser Plant Deal

Uganda takes climate action with $400m green hydrogen fertiliser plant deal

Uganda has signed a joint development agreement with Industrial Promotion Services (IPS) and Westgass International for a green hydrogen fertiliser plant.

The purpose of the plant is to strategically reduce the country's dependence on imported fertilisers, therefore strengthening economic resilience and sovereignty with an estimated investment of about $400 million (Ush 1.55 trillion), the East African reports.

Uganda's Energy Minister, Ruth Nankabirwa, said the plant will be located at Karuma, Kiryandogo District, within the Bunyoro sub-region to leverage its proximity with the 600 megawatt Karuma hydropower plant. Adding that the significance of the project extends far beyond the realms of agriculture.

The minister further explained that the project seeks to increase the production of nitrogen fertiliser to about 200,000 tons annually and would take up to 100 megawatts of electricity from the Karuma power station.

Speaking at the signing event, IPS CEO Galeb Gulam said that as a long-term investor, they develop businesses to be vehicles that create economic value by improving people's quality of life and restoring and protecting nature.

"This hydrogen-based fertiliser project will use Uganda's abundant renewable energy resources to produce green hydrogen to be used for the manufacture of fertiliser,” Gulam said.

He also said the project would contribute to fostering low-carbon development and promoting sustainable agriculture, as it has already been articulated.

In 2023, an International Energy Agency (IEA) review of Uganda's energy and climate policies found that the country had strong foundations for an ambitious energy and climate agenda. The review further emphasised the country's clean electricity sector, abundant natural resources, and dedication to expanding energy access.