Govt to mobilize Ksh 130B for green hydrogen investment

The government is seeking blended financing to raise Ksh 13o billion for green hydrogen investments.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi says Kenya is planning to leverage development of green hydrogen to increase fertilizer and ethanol production in the country and decarbonize the road transport sector.

It is estimated that Kenya and the East African region need a combined Ksh 1.2 trillion to develop and operationalize green hydrogen plants.

Green hydrogen is hydrogen produced sustainably using renewable electricity which causes lower greenhouse gas emissions than production of grey hydrogen, which is derived from fossil fuels.

Energy leaders from EAC bloc are calling for collaboration to finance green hydrogen plants.

Wandayi says the government is seeking more regional cooperation and private equity to raise the funding requirement in the next five years to implement its green hydrogen plant.

The German government says it will release Ksh 17 billion in concessional financing and grants to finance a 100 Mega watts green hydrogen plant in Kenya.

Kenya is among four African countries that have applied for a Ksh 40 billion grants to support green hydrogen markets.