UGANDA – Uganda’s Ministry of Energy has signed a US$400 million deal with Industrial Promotion Services Kenya Limited (IPS) and Westgass Internasjonal AS (Norway) for a green hydrogen-based fertilizer plant, aimed to reduce the country’s dependence on fertilizer imports.

The plant will be strategically located at Karuma, Kiryandogo District, within Bunyoro sub-region to leverage its proximity with the 600 megawatts Karuma hydropower plant.

IPS is the industrial and infrastructure development arm of the Aga Khan Fund for economic development and an agency of the Aga Khan Development Network.

Ruth Nankabirwa, the Minister of Energy and Mineral Development (MEMD) signed the joint development agreement, noting that the significance of the project extends far beyond the realms of agriculture.

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.

According to Ms Nankabirwa, the project aims to reduce the country’s dependence on imported fertilisers, therefore strengthening economic resilience and sovereignty.

The minister explained that the project seeks to increase the production of nitrogen fertilizer to about 200,000 tonnes annually and would take up to 100 megawatts of electricity from the Karuma power station.

“This aligns with the energy policy that seeks to support industrialisation through electrification,” Ms Nankabirwa said.

The initiative is expected to create more than 300 direct jobs, she added.

In addition, Nankabirwa noted that Uganda is embracing green technology to transform its agricultural sector and become a regional sustainability leader.

On his part, Galeb Gulam, IPS CEO said as a long-term investor, they develop businesses to be vehicles that create economic value by improving people’s quality of life and restoring and protecting nature.

This hydrogen-based fertiliser project will use Uganda’s abundant renewable energy resources to produce green hydrogen to be used for the manufacture of fertiliser,” Mr Gulam said.

He said they are excited to be part of the catalytical project that reflects commitment to climate action and the overall sustainable development agenda

A boost to export revenue

Speaking at the signing event, Mr. Odrek Rwabwogo,Chairman of the  Presidential Advisory Committee on Exports and Industrial Development (PaceID Uganda) said that the project supports Uganda’s export goals, utilising rich natural resources and innovative technologies.

According to him, the project aims at propelling the agricultural sector towards achieving the ambitious US$6 billion export target.

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