• It is the first of three projects that will see FFI, a subsidiary of Australia's Fortescue Metals Group invest in green energy and manufacturing in Kenya.
• The deal serves to reinforce Kenya's commitment to progress the development of sustainable green industries in the country.
Kenya on Wednesday signed an investment deal with Australia's Fortescue Future Industries for the development of a 300-megawatt green energy and fertiliser facility in Naivasha.
State House spokesman Hussein Mohamed said the facility will use the Olkaria geothermal resources as part of Kenya's ongoing efforts to cut fossil-dependent fertiliser production which is a significant contributor to greenhouse gasses.
"The project will also supply electricity to Kenya's grid, accelerating the phasing out of fossil fuels and reinforcing Kenya's position as a global leader in renewable energy," Mohamed said in a statement.
The agreement was signed by Energy and National Treasury cabinet secretaries Davis Chirchir and Njuguna Ndungu and FFI executive chairman Andrew Forrest at State House, Nairobi.
It is the first of three projects that will see FFI, a subsidiary of Australia's Fortescue Metals Group invest in green energy and manufacturing in Kenya.
The deal serves to reinforce Kenya's commitment to progress the development of sustainable green industries in the country.
Besides supporting Kenya's economy and food security, the project and the subsequent developments will contribute to the greening of agriculture and meeting Kenya's greenhouse gas reduction commitments, Mohamed said.
The deal was signed on the same day the European Union committed to supporting green energy projects in Kenya to the tune of Sh2.7 billion.
The “Green Resilient Electricity System” project will channel funds through various power companies to support new green electricity generation and strengthen the transmission system in the country.
EU representative in Kenya, Martin Andersen, said they would work with the German Development Bank (KfW) on the project.