Kenya Electricity Generating Company (KenGen) has inked a deal with Chinese engineering firm Kaishan Group Co. Ltd, through its subsidiary Kaishan Terra Green Ammonia Limited that involves steam supply to support development of a 165.4-MW geothermal-powered green ammonia plant in Kenya.
The signing ceremony took place at Kenya’s Ministry of Energy, attended by Dr. Tang Yan, Managing Director of Kaishan Group; Eng. Peter Njenga, KenGen’s General Manager and CEO; and Hon. J. Opiyo Wandayi, EGH, Kenya’s Minister of Energy.
Under the agreement, KenGen will supply geothermal steam from its operational fields, while Kaishan will be responsible for constructing and operating the power plant. The facility is projected to produce 100,000 tonnes of green ammonia and fertilizer each year.
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Sustainable agriculture
The project, estimated to cost around US $800M, is expected to generate annual revenues between US $220M and US $250M once operational. The plant will leverage geothermal energy to produce green ammonia, which will then be processed into urea and calcium ammonium nitrate fertilizers, supporting Kenya’s push for sustainable agricultural inputs.
Kaishan noted that this initiative aligns with its strategic goal of becoming a global leader in green hydrogen and ammonia production. While many renewable-based ammonia projects rely on solar and wind power, few have reached commercial operation due to the high cost and technological limits of energy storage. Geothermal energy, the company explained, provides a more stable and cost-effective alternative for continuous chemical production.
The company added that successfully integrating geothermal, wind, and solar power for hydrogen and ammonia generation could pave the way for new global pathways in clean energy development. Kaishan already has an established presence in Kenya through its acquisition of OrPower 22, which is developing a 35-MW geothermal power project in Menengai. Beyond Kenya, the group also holds a 100% stake in Indonesia’s Sorik Marapi geothermal plant through its subsidiary KS Orka Renewables Pte. Ltd.