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The government is to set up a green hydrogen-based fertilizers plant to improve food security, promote sustainable agriculture, and reduce the country’s reliance on imports.

The plant has been earmarked for Karuma, Kiryandongo District where it can leverage its proximity to the 600MW Karuma Hydropower plant with an estimated investment of about $400m (sh1.5trillion).

The Ministry of Energy and Mineral Development has committed a minimum of 100MW supply from Karuma HPP to develop this innovative project.

The Minister of Energy and Mineral Development, Ruth Nankabirwa, said the government is embracing green technology to transform its agricultural sector and become a regional sustainability leader.

“This project will not only reduce dependency on imported fertilizers and empower farmers but also catalyze Uganda’s green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors,” the minister said.

The government recently signed a joint development with the Industrial Promotion Services (Kenya) Limited to set up a plant.

The project, facilitated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID), aims to boost domestic fertilizer production, improve food security, and create economic opportunities for farmers.

IPS, serving as the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development (AKFED), part of the Aga Khan Development Network (AKDN), will lead the project alongside Westgass Internasjol AS, a Norwegian green energy specialist.

This venture enjoys the vital support of the British and Norwegian governments, global champions of green initiatives. IPS works alongside British International Investment (BII) through a joint platform, while Westgass works alongside Norfund, Norway’s development finance institution.