In a strategic move to promote sustainable agriculture and reduce import reliance, the Ugandan government has signed a Joint Development Agreement with Industrial Promotion Services (Kenya) Limited (IPS) and Westgass Internasjonal AS (Norway) for a green hydrogen-based fertilizer plant.
The plant will be strategically located at Karuma, Kiryandongo District, within the Bunyoro sub-region, to leverage its proximity to the 600 MW Karuma Hydropower Plant. The Ministry of Energy and Mineral Development (MEMD), representing the Government of Uganda, has committed a minimum 100 MW supply from Karuma HPP to develop this innovative project. Energy Minister Dr Ruth Nankabirwa Ssentamu signed on behalf of the government.
The project, facilitated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID), aims to boost domestic fertilizer production, improve food security, and create economic opportunities for farmers. IPS, serving as the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development (AKFED), part of the Aga Khan Development Network (AKDN), will lead the project alongside Westgass Internasjol AS, a Norwegian green energy specialist.
“Uganda is embracing green technology to transform its agricultural sector and become a regional sustainability leader,” said Dr Nankabirwa. “This project will not only reduce dependency on imported fertilizers and empower farmers but also catalyse Uganda’s green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors.”
This venture enjoys the vital support of the British and Norwegian governments, global champions of green initiatives. IPS works alongside British International Investment (BII) through a joint platform, while Westgass works alongside Norfund, Norway’s development finance institution.
“IPS is delighted to unite with the Ministry of Energy and Mineral Development and the Ministry of Agriculture and work with the support of PACEID,” said Galeb Gulam, CEO of IPS. “This multifaceted project will contribute towards fostering low-carbon economic development and promoting sustainable agriculture.”
Odrek Rwabwogo, PACEID chairman, emphasized the project’s support of Uganda’s export goals. “Utilizing Uganda’s rich natural resources and innovative technologies, this project is pointed to propel the agricultural sector towards achieving the ambitious $6 billion export target. PACEID’s role is to boost export capacity, explore market opportunities and cultivate a conducive environment for agricultural enterprises, ultimately benefiting farmers, rural communities, and the nation at large.”
The Norwegian Ambassador, Anne Kristin Hermansen, said, “With substantial investment from Norfund, Norad and Westgass Internasjonal AS, this project is a good example of how Norwegian public and private financing come together to fund bankable and sustainable projects that will have a long-lasting impact on Uganda’s economy, this investment as it aligns with our Government’s priorities of improving Uganda’s food security while utilizing the country’s renewable energy resources.”
This collaborative effort envisions a future of resilient, sustainable agriculture with lasting benefits for Ugandan farmers and the economy. It demonstrates the Ugandan government’s strong commitment to import substitution and enhanced food security. “Our sustainable approach will create jobs, decrease fertilizer imports, and address national food and income security. This partnership exemplifies Uganda’s focus on ecological responsibility and economic success,” added Kinar Kent, CEO of Westgass
This strategic partnership marks a significant leap forward in the quest for eco-friendly solutions in fertilizer production. By harnessing the power of green hydrogen, a revolutionary approach is underway to create fertilizers that not only enhance crop yields but also minimize environmental impact. This collaborative endeavor also underscores a shared commitment to fostering innovation and addressing pressing global challenges, heralding a new era of responsible agricultural practices and resource utilization.
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