Kenya has begun construction of a geothermal-powered fertiliser plant in Olkaria, Nakuru County, in a major step towards reducing its reliance on imports and cushioning farmers from volatile global prices.

The project, led by Chinese firm Kaishan Group Company Ltd, will produce between 200,000 and 300,000 tonnes of green fertiliser annually. It positions Kenya among the first African nations to integrate renewable energy into industrial-scale fertiliser production.

For years, Kenya has depended on imported fertiliser, leaving its farmers exposed to global price fluctuations. The high costs have repeatedly forced government intervention through subsidy programmes — efforts that have often been undermined by allegations of low-quality supplies and mismanagement.“This project shows that Kenya is not just a leading producer and consumer of clean energy. We are going further to add value and generate prosperity from it,” President William Ruto said during the groundbreaking ceremony.

The plant will be developed and operated by Kaishan Terra Green Ammonia, a subsidiary of Kaishan Group, using 165 megawatts (MW) of geothermal power supplied by KenGen. The Chinese firm will run the facility for 30 years before transferring ownership to the Kenyan government.

The initiative is expected to lower fertiliser costs, support agricultural productivity, and strengthen Kenya’s food security. KenGen projects annual revenues of about $13 million from the power supplied to the facility.

Fertiliser imports have declined in recent years, falling to 443,701 tonnes between January and June this year, compared to a peak of 629,566 tonnes in the same period of 2023.

The cost of fertiliser had risen above Ksh6,500 ($50) per 50-kilogramme bag before the government rolled out subsidies that lowered prices to around Ksh2,500 ($19). However, the programme has faced criticism over supply flaws and substandard deliveries.

The Olkaria green ammonia plant marks Kaishan’s second major investment in Kenya. The company also owns OrPower22, which is constructing a 35MW geothermal power plant in the Menengai geothermal field of Nakuru County. The Menengai plant, acquired by Kaishan two years ago, is expected to be completed and connected to the national grid by June next year.

© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).