The Ugandan government has entered a Joint Development Agreement (JDA) with Industrial Promotion Services (IPS) and Westgass International to establish a green hydrogen fertilizer plant. This initiative aims to enhance domestic fertilizer production, bolster food security, and generate economic opportunities for farmers.
Strategically located in Karuma, Kiryandogo District, within the Bunyoro sub-region, the plant will leverage its proximity to the 600-megawatt Karuma Hydropower Plant.
Minister of Energy, Ms. Ruth Nankabirwa, emphasized the project’s significance in reducing the country’s reliance on imported fertilizers, thereby enhancing economic resilience and sovereignty. With an estimated investment of $400 million, the project aims to produce approximately 200,000 tonnes of nitrogen fertilizer annually and will consume up to 100 megawatts of electricity from the Karuma hydroelectric power station.
Ms. Nankabirwa highlighted the project’s alignment with the energy policy’s objective to support industrialization through electrification. Moreover, it is expected to create over 300 direct jobs in the region.
Galeb Gulam, CEO of IPS, emphasized the project’s role in creating economic value and promoting sustainable development. The project will utilize Uganda’s abundant renewable energy resources to produce green hydrogen for fertilizer manufacturing, contributing to climate action and sustainable agriculture.
Odrek Rwabwogo, PACEID chairman, underscored the project’s support for Uganda’s export goals and its potential to propel the agricultural sector towards achieving a $6 billion export target.
The Aga Khan Development Network’s engagement in Uganda spans several decades, focusing on education, healthcare, economic development, and cultural activities. IPS, as the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development, has a diverse portfolio across sectors such as energy, telecommunications, agro-industries, and pharmaceuticals.
