As global attention focuses on climate change and energy transition, Africa's green development potential is becoming increasingly prominent. The launch of the world's first geothermal-powered green ammonia and fertilizer project in Kenya by China's Kaishan Group marks a significant milestone in this process, showcasing a sustainable model for agriculture and energy development.
Project Overview: A Geothermal-Powered Revolution
On November 3, 2025, Kenyan President William Ruto and Kaishan Group Chairman Cao Kejian inaugurated the geothermal green ammonia and fertilizer project in Olkaria, marking the official start of construction. The $800 million joint venture between Kaishan's subsidiary and Kenya's national power company KenGen represents one of Kenya's largest industrial projects to date.
The project's core involves building a 165.4 MW geothermal power plant that will produce green ammonia and fertilizer. This follows the October 27, 2025 signing of a steam supply agreement between Kaishan and KenGen, where existing geothermal wells will provide steam for power generation.
Economic and Agricultural Impact
Upon completion, the facility is expected to produce 200,000 tons of green ammonia annually, which will be converted into 180,000 tons of urea and 300,000 tons of calcium ammonium nitrate. This output will significantly reduce Kenya's fertilizer import dependency, enhance food security, and save substantial foreign exchange. Projected annual revenues range between $220-$250 million.
The contract stipulates a 24-month construction timeline for the complete power-to-ammonia-to-fertilizer production chain, with provisions for a six-month extension if 80% completion is achieved within the initial period.
Kenya's Geothermal Advantage
As the world's seventh-largest geothermal energy producer, Kenya currently has about 950 MW installed capacity with potential resources nearing 10,000 MW. The government plans to double geothermal capacity by 2030 to meet growing electricity demand while advancing industrial decarbonization and agricultural modernization.
Leadership Perspectives
President Ruto emphasized the project's role in stabilizing fertilizer supply and prices for Kenyan farmers while bolstering national food security. Energy Minister Opio Wandayi described the initiative as aligning with Kenya's strategic development plans. Kaishan Chairman Cao Kejian highlighted the project's potential to address Africa's food security challenges through stable fertilizer production.
Kaishan's Clean Energy Expertise
As one of China's top mechanical engineering firms and a global leader in compressor manufacturing, Kaishan brings proprietary geothermal technology to the project. The company previously invested $93 million in Kenya's 35 MW Menengai geothermal project in 2024, demonstrating its growing commitment to Africa's energy sector.
Green Ammonia's Global Potential
The project positions Kenya at the forefront of geothermal-to-green-ammonia technology commercialization, offering a replicable model for agricultural transformation in developing nations. As demand grows for carbon-neutral energy carriers, such initiatives gain strategic importance in global decarbonization efforts.
Implementation Challenges
While promising, the project faces technical hurdles including precise geothermal resource assessment and environmental considerations. Successful execution will require sustained international cooperation in technology transfer, financing, and project management.
The initiative represents a significant case study in China-Africa clean energy cooperation, combining Kenya's natural resources with Chinese technological expertise to address both energy transition and food security challenges.