President Wiliam Ruto has secured a $4.48 billion (Ksh 682,496,528,000) deal for Green Development projects in Kenya at the COP28 summit hosted in Dubai.
The deals were announced during the launch of the Africa Green Industrialization Initiative (AGII) on Saturday 2nd December 2023.
Among the seven deals acquired by the head of state includes a collaboration of Kenya with Fortescue for a green ammonia project, boosting energy security and cutting reliance on imports.
According to a statement released to newsrooms the collaboration is set to boost the green energy in Kenya.
“The Government of the Republic of Kenya and Fortescue are reinforcing their commitment to develop a milestone green energy and fertilizer project together,” read the statement in part.
Ruto Secures Fertilizers Deal
According to the statement, Kenya will receive Ksh 229 billion for the setting up of the fertilizers manufacturing plant.
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“This will provide Kenya with additional energy security that steps beyond the use of fossil fuels, and more importantly stops a reliance on imported fertilizer,” read the statement.
Additionally, the partnership sets Kenya on a path to industrial decarbonization. Kenyan partners Fortescue say they are determined to commit to Kenya’s project.
“Fortescue is determined and eager to be with the people of Kenya on that journey, that is why the Fortescue board has publicly committed to fast tracking project plans in Kenya,” read the statement.
Kenya to Establish Geothermal Data Centers
On the other hand, Kenya is set to benefit from the second funding in establishing a data center for three geothermal companies.
KenGen, Olkaria, and Konza Technopolis have been identified as the beneficiaries of the deal worth Ksh 91 billion.
The deal will see Kenya through the Konza Metropolis and KenGen develop an ICT Data Storage industry using green energy from Geothermal.
“Government of Kenya through Konza Metropolis and KenGen are committed to develop an ICT Data Storage industry using green energy from Geothermal,” read the statement in part.
Likewise, the project is designed in mind to suit the requirements and specifications of major global cloud players.
Eco Cloud, as an investor with KenGen and Konza partnership plans a 200MW data center infrastructure outlay at an investment cost Ksh 91billion.
Suswa Geothermal Plant Secures Billions of Funds
Additionally, Ruto also secured a geothermal deal with the Government of Indonesia to build a 300MW geothermal project Suswa.
“Partnerships is with the Republic of Indonesia, through the Indonesia Ministry of Energy and Mineral Resources (“MoEMR”) and the Republic of Kenya through the Ministry of Energy & Petroleum (“MoEP”),” read the statement.
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This partnership seeks to leverage on the strengths of both countries, through technological transfer, capacity building, enhancement in policy, legal and regulatory frameworks, and mutual investment in geothermal resource development.
Worth noting is that the partnership comes with an initial investment of 1.0 billion USD geared at the development of 300MW of geothermal power by 2030.
Menengai & Paka Geothermal Projects
The government has also partnered with Globeleq to develop a 35MW geothermal project in Menengai. This will come for Ksh 16 billion and will take 2 years to complete.
Also, Globeleq is currently operating a solar project in Malindi with a capacity of 52MWp.
Another Ksh 122 billion deal to construct a 200MW Paka Geothermal field by GDC and AMEA Power.
GDC and AMEA will jointly assess available data, site access, and studies done at the Paka Geothermal Field, including the number of wells drilled, the status of the wells, drilling, process reports, and the capacity of the wells (MW equivalent of steam capacity and Steam + Brine Capacity).
Similarly, this will be followed by a full feasibility study for the Paka Geothermal Field, the costs for which would be borne fully by AMEA Power.
Clean Energy Supply Chain & Sustainable Agriculture
The US, Brazil, India, and Kenya launch Clean Energy Supply Chain (CESC) for expansion, with a Ksh 86 billion loan for developing countries. Here Kenya announced a Ksh 30 billion investment into the same.
Furthermore, Kenya secured go green fund Ksh 41 billion set to benefit 15000 households in the lake region.
“United Green and Kenya Development Corporation’s to develop sustainable agriculture project around the Lake Basin Region,” read the statement.
The Ksh 41 billion project will cover 15,000 hectares of climate-smart, high carbon-sequestering, precision agriculture, and broadacre row cropping.
