Kenya : State eyes green hydrogen projects to enhance growth
Kenya is advancing its green hydrogen economy, supported by the Energy and Petroleum Regulatory Authority (EPRA) and recent guidelines for development. The country commissioned its first green hydrogen plant in Nakuru County and launched a strategy focusing on green industrialization, emissions reduction, and job creation.
Kenya is on the cusp of tapping the emerging multi-billion shilling green hydrogen economy leveraging the abundant energy sources to enhance economic growth.
According to the Energy and Petroleum Regulatory Authority (Epra), Kenya will capitalise on the emerging green hydrogen economy and create demand for diverse applications of green hydrogen, given the groundwork that has already been laid down. Kenya commissioned its first green hydrogen plant in Morendat, Nakuru County, marking a significant milestone after launching its Green Hydrogen Strategy and Roadmap two months earlier.
“To further bolster this sector, the Authority published the Kenya Green Hydrogen and Its Derivatives Guidelines in May 2024, establishing a robust regulatory framework designed to encourage innovation and growth,” Kiptoo, said.
Feasibility studies
These guidelines outline the sustainability criteria for green hydrogen, as well as regulations on land and water use, and requirements for the approval of expressions of interest and feasibility studies.
“Several expressions of interest for developing green hydrogen in Kenya have been received and are at various stages of review,” the report added. The roadmap emphasized on the development and expansion of the domestic market, exports, and incorporates particular goals pertaining to reducing emissions, generating employment, and attracting direct investments.
“The strategy focuses on four key pillars; improved balance of payments, food security and resilience, green industrialisation and decarbonisation and investments in the country,” the report read.
According to the report, the initiative is geared towards achieving various impact targets notably, at least $1 billion (Sh129.4 billion) direct investments by 2030 and at least 25,000 direct jobs created between 2028-2032. Additionally, the initiative targets avoiding at least 250,000 tonnes of CO2 per year by 2030 and producing green shipping fuels by 2030. Several entities have also showed interest in financing the initiative is the European Investment Bank (EIB), the European Union (EU), Global Gateway and Germany.
EIB, the world’s largest multilateral bank and leading global financier of renewable energy, in march 2023 said that it will provide 1.8 million euros (Sh253.2 million) to the Kenyan government for onward lending to green hydrogen investors in the country.
Thomas Östros, European Investment Bank Vice President and the National Treasury signed the Joint Declaration on Renewable Clean Hydrogen following discussions on green hydrogen investment with William Ruto, President of the Republic of Kenya.
The European Union also offered approximately $13 million (Sh1.6 trillion) in grants to encourage both public and private investments in Kenya’s green hydrogen sector..
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