(Luxembourg) - The European Investment Bank (EIB) is boosting green hydrogen investment in Kenya. EIB Vice-President Thomas Östros and Kenyan Finance Minister Njuguna Ndung'u have signed a “Joint Declaration on Renewable Clean Hydrogen”.
Thomas Östros, Vice President of the European Investment Bank (right), and Kenyan Finance Minister Njuguna Ndung'u. © European Investment Bank EIB
The new agreement is intended to support the development of green hydrogen projects in Kenya. The EIB initially wants to mobilize European Union grants worth 1,8 million euros and explore possible loan financing for larger investments related to green hydrogen.
“Together we will develop projects to develop green hydrogen as part of Kenya’s Energy Roadmap 2040,” said Njuguna Ndung’u. Kenya has “some of the best renewable energy sources in the world.” The country's wind and solar energy revenues could be used to produce green hydrogen, providing affordable energy for economic development and industrial growth.
“Renewable energy model for the rest of the world”
It was only in mid-February that the state-run Kenya Electricity Generating Company (KenGen) welcomed Thomas Östros to the Olkaria geothermal power plant. Another section with an output of 86 megawatts was recently put into operation there. Olkaria is "a model of renewable energy for the rest of the world" that has helped reduce the impact of global energy shocks in Kenya and reduce carbon emissions on a global scale, Östros said. Kenya wants to cover all of its energy needs from renewable sources by 2030.
KenGen is the leading power generation company in the East Africa region with a market share of more than 60 percent in generation capacity. Today, KenGen has an installed capacity of 1.904 megawatts (MW), of which over 86 percent comes from environmentally friendly sources, including hydropower (826 MW), geothermal energy (799 MW) and wind power (25,5 MW).
Over the last decade, the European Investment Bank says it has committed more than €5,3 billion to energy sector investments across Africa, including €418 million to investments in geothermal, wind and solar energy, as well as grid investments in Kenya.
The EIB is the European Union's long-term financing institution and is owned by its Member States. It provides financing for investment projects to help achieve the EU's political objectives.
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Headquarters of the European Investment Bank in Luxembourg. © European Investment Bank EIB
