Australian Fortescue Metals Group is expected to make its final investment decision by end of the year for the development of a 300 MW capacity generation ammonia and fertilizer facility in Naivasha within the Olkaria geothermal field in Kenya.
The Fortescue Metals Group aims to increase domestic supply of fertilizer to Kenya’s nations electric grid in a bid to boost local fertilizer production and reducing import dependency.
“Fortescue Metal Plans to develop a 300 MW green ammonia and fertilizer complex in Naivasha, Kenya. Once operational, the facility will increase domestic supplies of fertilizer and provide ammonia to the nation’s electric grid,” the statement read.
What’s more, the project is a major investment for Fortescue and Kenya as it will help the country to produce Ammonium fertilizer locally.
With this project, Kenya will be able to bolster food security and agricultural productivity as well as create job opportunities for local communities.
The deal which Kenya’s president William Ruto and the Company’s executive chairman Andrew Forrest signed in November 2022, will see collaboration between Kenya and Fortescue group for a three-year period.
“Today marks the beginning of what we all believe will be a long and fruitful partnership between Kenya and FFI. Kenyans elected me on a platform of creating opportunities for local industries, local businesses and communities.
In addition, this agreement will help to achieve that and help to support further economic and infrastructure development in Kenya,” Ruto stated.
Fortescue deal, a boost for Kenya
Moreover, Fortescue’s decision is set to come at a time when Kenya is strengthening its agricultural sector to achieve its development goals.
Kenya currently aims to achieve 100 percent in food and nutrition security by 2030. Thus, the new fertilizer plant will play a crucial role in supporting the government’s efforts to improve farming.
Likewise, the Construction of the fertilizer plan is also set to have a ripple effect on the economy. It will attract other investors and create a favourable environment for research and development.
This will not only benefit the agricultural sector but also boost Kenya’s economy. With the final investment decision drawing near, stakeholders, farmers and local communities are eagerly awaiting the outcome of the Australian company.
Similarly, if the project goes ahead, it will mark a significant effort in the current president William Ruto’s Bottom-Up economic model of enhancing local agricultural production.
Also, Fortescue Metals Group’s 1$ billion injections into Kenya is set to revolutionize the agricultural sector.