Gov't endorses $400m green hydrogen fertilizer plant
Farmers use tractors to plough land. Uganda's hydrogen based fertilizer project will use the abundant renewable energy resources to produce green hydrogen to be used for the manufacture of fertilizer for farmers among others. Photo | NMG
What you need to know:
- Over the course of several decades the Aga Khan Development Network has maintained its engagement in Uganda continuing to invest in education, healthcare, economic development, and cultural activities. Upholding its mandate of improving the quality of life of the communities in which it operates.
In a bid to boost domestic fertilizer production, improve food security, and create economic opportunities for farmers, the government has signed a Joint Development Agreement (JDA) with Industrial Promotion Services (IPS) and Westgass International for a green hydrogen fertilizer plant.
The plant will be strategically located at Karuma, Kiryandogo District, within Bunyoro sub region to leverage its proximity with the 600megawatts Karuma Hydropower Plant.
According to the Minister of Energy, Ms Ruth Nankabirwa who signed the JDA on behalf of the government, she said, the significance of this project extends far beyond the realms of agriculture.
Ms Nankabirwa said this project represents a tangible step towards reducing the country's dependence on imported fertilizers, thereby strengthening economic resilience and sovereignty with an estimated investment of about $400m.
The minister explained that the project seeks to promote about 200,000 tonnes of nitrogen fertilizer annually, and will offtake up to 100 megawatts of electricity from the Karuma hydro electric power station.
“This aligns with the energy policy that seeks to support industrialization through electrification ” Ms Nankabirwa said.
Furthermore, she said this initiative is expected to create over 300 direct jobs in the region
Speaking at the JDA signing event, Mr Galeb Gulam the Chief Executive Officer of IPS said 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 fertilizer project will use Uganda's abundant renewable energy resources to produce green hydrogen to be used for the manufacture of fertilizer,”Mr Gulam said.
Mr Gulam said they are excited to be part of the catalytical project that reflects commitment to climate action and the overall sustainable development agenda.
He said this multifaceted project will contribute to fostering low carbon development and promoting sustainable agriculture as it has already been articulated.
According to Mr Odrek Rwabwogo, the PACEID chairman, he emphasized that the project supports Uganda’s export goals, utilizing rich natural resources and innovative technologies.
Mr Rwabwogo said this project is aimed at propelling the agricultural sector towards achieving the ambitious $6billion export target.
Over the course of several decades the Aga Khan Development Network has maintained its engagement in Uganda continuing to invest in education, healthcare, economic development, and cultural activities. Upholding its mandate of improving the quality of life of the communities in which it operates.
IPS is the Industrial and infrastructure development arm of the Aga Khan Fund for the economic development and agency of the Aga Khan Development Network.
IPS has developed a wide range of businesses spanning across multiple sectors such as energy, telecommunications, agro industries, pharmaceuticals, printing and packaging among others.
