Kenya launches green hydrogen strategy and road map with EU

Kenya has launched its green hydrogen strategy and road map, in collaboration with the EU, setting out ahead of the UN COP28 climate conference how it expects the renewable energy carrier to form a key pillar of its decarbonization efforts.

The road map, developed with EU officials, sets out the country's ambitions to develop its hydrogen industry, with a focus on domestic market development as well as exports, targeting emissions reduction in the agricultural sector, direct investments and job creation.

"Green hydrogen economy will enhance food security including expansion of green production of Kenyan tea, coffee, horticulture, floriculture and grains," Kenyan President William Ruto said in a statement Sept. 5.

"It will also facilitate decarbonization of our industries and indeed the economy."

In an initial implementation phase to 2027, the country is targeting 100 MW of installed electrolysis capacity and around 150 MW of dedicated renewable power for hydrogen production.

Those are to increase to 150-250 MW of electrolysis by 2032, backed by an additional 350-450 MW of renewables.

The strategy and road map were launched at the Africa Climate Summit in Nairobi by European Commission President Ursula von der Leyen and Ruto, ahead of the COP28 summit in UAE in December.

Kenya has pledged to reduce its greenhouse gas emissions by a third by 2030, through its updated Nationally Determined Contribution (NDC).

The plans are supported by the EU's foreign investment strategy Global Gateway, which is giving Eur12 million ($13 million) in grants to Kenya's green hydrogen industry.

Fossil fuel substitutions

Kenya is targeting 100% clean energy by 2030, from a current renewable energy share of 90%.

"Exploring options for producing green hydrogen from green electricity is a logical next step in building a green economy in Kenya," it said in the road map, targeting a focus on substituting fossil fuel-derived fertilizers with green hydrogen derivative alternatives.

The government said Kenya could benefit from improved balance of payments, increased food security and resilience, green industrialization and decarbonization, and increased investment through its hydrogen strategy.

"Producing green hydrogen for use as feedstock in industrial processing plants, will reduce Kenya's imports of hydrogen-based commodities like nitrogen fertilizer and methanol," it said.

"Once a domestic market for green hydrogen derivatives has been established, this will also open opportunities for export, taking advantage of Kenya's strategic geographic position as a regional trading hub."

It said a growing green hydrogen industry would also serve as an "anchor offtaker" for an expanded renewables-focused power grid.

The EU is targeting 10 million mt/year of hydrogen imports or derivatives such as ammonia by 2030.

Germany is also targeting large volumes of imports to meet an expected shortfall of clean hydrogen and derivatives through its H2Global tender scheme.

Under the plans announced Sept. 5, Germany is giving a Eur60 million loan to develop green fertilizer in Kenya and has plans to open a "Hydrogen Diplomacy Office" in Nairobi, German Parliamentary State Secretary to the Minister for Economic Cooperation and Development Baerbel Kofler said in the statement.