FFI agrees commercial framework for green ammonia project in Kenya

Fortescue Future Industries (FFI) has agreed on a commercial framework with the government of Kenya in relation to their plan to build a green ammonia and fertiliser plant with a generation capacity of 300 MW in the Naivasha vicinity of the Olkaria geothermal field.

The green energy business of Australian iron ore giant Fortescue Metals Group Ltd (ASX:FMG) announced in a statement last week the signing of an agreement with the country’s government, stipulating state support for the critical resources, infrastructure and off-take.

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The new deal accelerates a framework agreement signed during COP27, Fortescue said, adding that it also facilitates the fast-tracking of engineering and environmental studies, along with the early procurement for the development of the industrial facilities. It has also been agreed that the project’s scope will include the supply of green electricity to Kenya’s grid.

“Our plan to achieve radical socio-economic transformation commits our government to accelerate geothermal resource development, reduce the cost of renewable energy and transition to 100% clean energy generation, by 2030. This requires major equity and technological investments,” the president of Kenya, William Ruto, stated.