A steam supply deal for a proposed 165.4-MW geothermal power plant in Kenya, which will generate 100,000 tons of green ammonia and green fertilizer yearly, has been signed by Chinese engineering firm Kaishan Group Co. Ltd. through subsidiary Kaishan Terra Green Ammonia Limited and KenGen. As per the deal, KenGen's operational geothermal fields will supply steam to Kaishan, who will build the power plant.
In the presence of Eng. Peter Njenga, General Manager and CEO of KenGen, and Dr. Tang Yan, Managing Director of Kaishan Group Co., the steam supply agreement was signed at the Republic of Kenya's Ministry of Energy. Hon. J. Opiyo Wandayi, EGH, the Minister of Energy of the Republic of Kenya, was also present at the signing event.
An investment of over USD 800 million is anticipated for the project. The projected yearly revenue will be between USD 220 and 250 million if it is finished and operational. The facility will use geothermal energy to produce green ammonia, which will then be used to make fertilizers like urea and calcium ammonium nitrate.
Kaishan's goal of becoming "a major global player in green hydrogen and ammonia development and operations" includes the new project. Few green ammonia production projects using solar and wind power generation have actually been established, according to the corporation, despite the fact that several are in the works. This is due to the fact that energy storage must be added to solar and wind power installations in order to produce chemicals. Energy storage's cost and technology continue to be obstacles to its widespread use.
Kaishan's innovative technology will create another significant avenue for the growth of hydrogen energy worldwide once it is demonstrated that the combination of geothermal, wind, and solar electricity can produce hydrogen and green ammonia.
The Kaishan group has already established a presence in Kenya through the acquisition of OrPower 22, which is developing a 35-MW geothermal power plant in Menengai.