Norfund to finance green hydrogen fertiliser project in Uganda

The project aims to produce 200,000 tonnes of fertiliser every year.

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Norfund, in collaboration with Industrial Promotion Services (IPS) and Westgass Internasjonal, is investing in a green hydrogen-based fertiliser production facility in Uganda.

IPS, the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development, and Westgass Internasjonal, a Norwegian green energy company, have signed a joint development agreement with the Government of Uganda, to develop a green hydrogen based fertiliser production facility, leveraging on the country’s abundant renewable energy resources. Norfund, the Norwegian investment fund for developing countries, is co-financing the project through a convertible loan, and the project has received grant funding from Norad, the Norwegian Agency for Development Cooperation.

The project aims to produce 200,000 tonnes of fertiliser every year. Through an agreement on the supply of 100 MW of renewable energy from a local hydropower plant, the partners will produce green hydrogen through electrolysis. The green hydrogen is then combined with nitrogen (produced by an air separation unit) to produce green ammonia. This is further processed with dolomite or phosphates to produce calcium ammonium nitrate (CAN) and fertilisers based on nitrogen, phosphorus, and potassium (NPK), which are types of fertilisers already in use in the region.

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