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Uganda’s $400M green hydrogen fertilizer plant deal

Uganda’s $400M green hydrogen fertilizer plant deal

(Courtesy photo)

In a move towards agricultural independence and sustainable development agenda, Uganda has inked a monumental $400 million joint development agreement for a green hydrogen fertilizer plant. Spearheaded by Uganda’s Energy Minister Ruth Nankabirwa, the deal involves collaboration between Industrial Promotion Services (IPS) and Westgass International.

Strategically situated in Karuma, Kiryandogo District, within the Bunyoro sub-region, the plant will capitalize on its proximity to the 600 megawatts Karuma hydropower plant. Minister Nankabirwa emphasized that beyond agricultural benefits, the project holds broader economic implications, aiming to diminish Uganda’s reliance on imported fertilizers, thus fortifying economic resilience and sovereignty.

The initiative anticipates a substantial boost to the production of nitrogen fertilizer, targeting an annual output of approximately 200,000 tonnes. Furthermore, the project is slated to consume up to 100 megawatts of electricity from the Karuma power station, aligning seamlessly with Uganda’s energy policy aimed at facilitating industrialization through electrification.

Speaking at the signing ceremony, IPS CEO Galeb Gulam underscored the project’s commitment to sustainability and climate action. Leveraging Uganda’s abundant renewable energy resources, the hydrogen-based fertilizer project intends to revolutionize agricultural practices by utilizing green hydrogen for fertilizer production.

Mr. Gulam highlighted the project’s alignment with sustainable development objectives, emphasizing its potential to foster low-carbon development and promote sustainable agriculture. The endeavor is poised to create more than 300 direct jobs, contributing significantly to employment opportunities and economic growth in the region.

Echoing similar sentiments, Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PaceID Uganda), emphasized the project’s pivotal role in advancing Uganda’s export goals. By harnessing rich natural resources and innovative technologies, the initiative aims to propel the agricultural sector towards achieving ambitious export targets, envisioned at $6 billion.

The involvement of IPS, as the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development, underscores a long-term commitment to fostering economic growth and sustainable development in Uganda. With a diverse portfolio spanning energy, telecommunications, agro-based industries, and more, IPS brings invaluable expertise and resources to the table.

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