Kampala, Uganda | NOW THEN DIGITAL — The Ugandan government, through the Ministry of Energy and Mineral Development, recently inked a significant $400 million deal with Industrial Promotion Services Kenya Limited (IPS) and Norwegian Westgass Internasjonal AS. The collaboration aims to establish a green hydrogen-based fertilizer plant in Karuma, Kiryandongo District, as part of a broader initiative to decrease the country’s reliance on imported fertilizers.
Ruth Nankabirwa, the Minister of Energy, highlighted that the project aligns with the goal of enhancing economic resilience and sovereignty by reducing dependency on imported fertilizers. The investment of approximately $400 million is set to bolster nitrogen fertilizer production to around 200,000 tons per year, drawing about 100 megawatts of electricity from the nearby Karuma hydropower plant.
Emphasizing the project’s contribution to Uganda’s energy policy supporting industrial growth through electricity usage, Nankabirwa mentioned the expected creation of over 300 direct job opportunities. The strategic location of the plant aims to leverage proximity to the 600 megawatts Karuma hydropower plant.
Currently, Uganda heavily relies on imported fertilizers, facing challenges such as high prices and unstable access. The new project seeks to address this by establishing local, sustainable fertilizer production. Kinar Kent, CEO of Westgass, noted that this initiative positions Uganda as a pioneer in adopting green technology, fostering economic growth, and reducing carbon emissions by over 200,000 tons annually.
Norway, through Norad and Norfund, is supporting the project financially. Norfund’s CEO, Tellef Thorleifsson, highlighted the potential to improve farmers’ yields, increase income, and enhance food security without escalating greenhouse gas emissions. With Uganda categorized as a “Least Developed Country” by the OECD, the project is seen as a pioneering effort with the potential for significant positive impact, backed by solid partnerships combining industrial expertise and local experience.
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Today on behalf of the Ugandan Government and facilitated by @paceidug , i signed a Joint Development Agreement with Industrial Promotion Services (Kenya) Limited (IPS) and Westgass Internasjonal AS (Norway) for a green hydrogen-based fertilizer plant. pic.twitter.com/zKkOYp9ayG
— Ruth Nankabirwa Ssentamu (@NankabirwaRS) February 15, 2024
In a strategic move to promote sustainable agriculture and reduce import reliance, @GovUganda has today signed a Joint Development Agreement with Industrial
Promotion Services (Kenya) Limited (IPS) to set up a green hydrogen-based fertilizer plant in Karuma, Kiryandongo District.… pic.twitter.com/KIGdGZDv8U— Office of the Presidential Advisor- Special Duties (@SpecialDuties_) February 15, 2024
