Norfund backs green hydrogen-based fertiliser project in Uganda

Norfund, the Norwegian Investment Fund for developing countries, is supporting a fertiliser project based on green hydrogen in Uganda.

It was announced last week that Industrial Promotion Services (IPS), the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development, and Norwegian green energy company Westgass Internasjonal have signed a joint development agreement for the project with the government of Uganda. Norfund is initially investing in the initiative through a convertible loan.

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The project targets 200,000 tonnes of locally produced fertiliser a year. It has an agreement to use 100 MW of renewable energy from a local hydropower plant to produce green hydrogen through electrolysis. The green hydrogen is then combined with nitrogen to produce green ammonia, which is further processed to make fertilisers.

Norfund’s announcement notes that Uganda and the region currently use mainly imported fertiliser.

“We see an enormous potential in increasing the yields of the farmers in the region and thereby providing increased income and food security, without increasing GHG emissions,” commented Norfund CEO Tellef Thorleifsson.

“This project will not only reduce dependency on imported fertilisers and empower farmers but also catalyse Uganda’s green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors,” Uganda’s energy minister Ruth Nankabirwa said in a separate statement.