UGANDA: IPS and Westgass to build hydrogen-based green fertilizer plant
In Uganda, the government is convinced that the production of green fertilizers will boost food security. Hence the recent signing of a partnership with Industrial Promotion Services (IPS), a Kenyan developer and investor in sustainable projects, and Westgass International, a Norwegian company specializing in green energy, to build a green fertilizer plant in the country. The future facility will incorporate hydrogen to decarbonize agricultural fertilizers.
The partnership between the Ugandan Ministry of Energy and Mineral Development, Industrial Promotion Services (IPS), and Westgass International was signed on February 15, 2024 in the Ugandan capital Kampala. The agreement covers the construction of a hydrogen-based green fertilizer plant. The plant will be located in Karuma, in the Kiryandogo district of western Uganda, to take advantage of its proximity to the 600 MW Karuma hydroelectric power station.
Once operational, the new plant is expected to boost national fertilizer production and improve food security. As of January 9, 2023, the World Food Programme’s (WFP) hunger map showed that 16.4 million Ugandans faced insufficient food consumption.
The Ugandan Ministry of Energy and Mineral Development therefore plans to increase nitrogen fertilizer production to around 200,000 tonnes per year thanks to this project, for 100 MW of electricity used from the Karuma power plant. This fertilizer is mainly composed of ammonia, obtained by combining nitrogen from the air with hydrogen. It has the advantage of activating plant growth, and promoting the growth and development of all above-ground parts (stems, leaves, etc.). But if nitrogen is mismanaged, or not taken up by the plant at the right time, it can cause major environmental damage.
A $400 million investment
The implementation of this project “will also reduce Uganda’s dependence on fertilizer imports”, says Kinar Kent, CEO of Norwegian company Westgass, which is investing in the construction of a green value chain for hydrogen and ammonia in Europe, Africa and Asia. According to data compiled on the Trade Map platform, Yoweri Museveni’s country would have imported over $56 million worth of fertilizers on the international market in 2022, mainly from Russia and Saudi Arabia, to make up for its production deficit of the input.
Green fertilizer production by Kenya’s IPS and Westgass in Uganda will also promote low-carbon economic development, notably through increased imports. “By using Uganda’s rich natural resources and innovative technologies, this project is able to propel the agricultural sector towards achieving the ambitious target of $6 billion in exports,” points out Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Export and Industrial Development (PACEID), which also promotes sustainable agriculture in Uganda.
The Ugandan government estimates the total cost of the hydrogen-based green fertilizer plant at $400 million. The country is supported by several international financial institutions, including the Norwegian Agency for Development Cooperation (NORAD) and the Norwegian Investment Fund for Developing Countries (NORFUND).
Cover photo: By AFRIK21
