Fortescue, an Australian company that is among the world’s four largest mining companies, has committed to make a final investment decision (FID) on plans to construct a fertilizer plant in Kenya before December 2023.
This comes months after an agreement signed between President William Ruto and Fortescue’s Executive Chairman Andrew Forest in March this year.
The investment intends to develop a 300MW capacity generation of green ammonia and a fertilizer plant in Naivasha.
As per multiple media reports Fortescue has said it remains committed to making final investment decisions (FIDs) on five green energy projects by December 31, with Kenya being among the beneficiaries.
The ammonia project is projected to supply fertilizer to local farmers and offer an alternative to current Russian made fertilizer.
Moreover, the project will be a boost for Kenya’s decarbonization efforts in line with its carbon targets commitment.
The project, according to the agreement, will leverage the geothermal energy available in Olkaria, Naivasha to ensure carbon-free production of fertilizer.
In addition to fertilizer, the project is designed to provide power to Kenya’s green energy national grid.
Back in March, both Fortescue and the government of Kenya had agreed on a commercial framework for the project.
However, the investment was pending a go-ahead from the company’s board.
While Fortescue was to mobilize funds and other resources for the project, the government of Kenya committed to offer critical resources such as land and facilitate off-take of the products.
Fortescue Metals Group engages is a global leader in development of iron ores and has interests in renewable energy and green technology.
Headquartered in Perth, Australia, the conglomerate has established itself as a fast-adapting company committed to delivering socio-economic benefits for communities across the world.