Norfund Backs Green Hydrogen Fertilizer Project in Uganda

Credit: Norfund

, the Norwegian Investment Fund for developing countries, is throwing its weight behind a pioneering fertiliser project centered on green hydrogen in .

Last week's announcement revealed 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 inked a joint development agreement with the government of Uganda for the initiative. Norfund is stepping in to support the project initially through a convertible loan.

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The ambitious project aims to produce 200,000 tonnes of locally manufactured fertiliser annually. It has secured an agreement to leverage 100 MW of from a local plant to drive electrolysis for the production of green hydrogen. This green hydrogen will then be combined with nitrogen to generate green , which will undergo further processing to create fertilisers.

Norfund's CEO Tellef Thorleifsson emphasized the transformative potential of the project, stating, “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.”

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Uganda's energy minister Ruth Nankabirwa also hailed the project's significance, highlighting its role in reducing dependency on imported fertilisers and empowering local farmers. “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,” she affirmed in a separate statement.

The collaboration underscores Norfund's commitment to driving sustainable development and fostering innovation in emerging markets, marking a significant step towards promoting agricultural self-sufficiency and environmental sustainability in Uganda and the broader region.

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