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First PDP hydrogen project in Kenya overcomes the financing hurdle and is set for implementation
Introduction
Investment projects in green hydrogen and ammonia become feasible with the support of the Project Development Programme (PDP). For many industrial companies in developing and emerging markets, securing finance for green hydrogen and green ammonia is the make‑or‑break factor. In Kenya, Nyeri Hill Farm, supported by PDP, succeeded in UNIDO’s A2D Facility selection process and secured a grant covering a major share of the financing. This is a scalable example – demonstrating that concrete projects in developing and emerging countries are possible.
Publisher:
German Energy Solutions Initiative
Project discussion between the PEP Kenya team and Nyeri Hill Farm staff
Financing is secured: Nyeri Hill Farm in Kenya is set to produce just under 60 tonnes of ammonia per year using a ground-mounted PV system with a total capacity of 550 kWp, a 220 kW electrolyser, and a small-scale ammonia production unit. The ammonia is intended for direct use as nitrogen fertiliser; the oxygen generated as a by-product is planned to be used by the adjacent hospital.
Green ammonia in Kenya – new perspectives for agricultural production
Nyeri Hill Farm – one of Kenya’s largest coffee plantations – cultivates coffee and tea, runs livestock and horticulture operations, and is active in reforestation. The board aims to set new quality benchmarks in the sector and apply best practices in environmental and fertiliser management. “With this project, we aim to set an example for African agribusinesses seeking to build a reliable supply of low‑carbon fertiliser—to operate more sustainably and plan costs more effectively,” says Boniface Mwangi, finance manager and head of the green ammonia project at Nyeri Hill Farm.
Importance of considering finance from the very beginning
Across developing and emerging markets, industrial companies are exploring hydrogen and ammonia solutions for process heat, fertilizer production, and integrated energy systems. In many cases, projects stall at an early stage – not because the technology is unavailable, but because financing requirements are difficult to meet, particularly for first-of-a-kind or mid-scale projects. For hydrogen projects in particular, financing is a critical factor and needs to be addressed from the outset.
In this case, financing was considered from an early stage: PDP identified suitable funding instruments, supported the preparation of applications, and established contact with potential financiersas well as with GET.invest – a leading European programme mobilising investment in clean energy in developing countries, co-funded by the European Union, Germany, Norway, the Netherlands, Sweden and Austria. In addition to the UNIDO-A2D-Grant, a soft loan from Starkmacher Impact GmbH and its funding partner complements the project.
Structured project development lays the foundation – German technology planned for implementation
The project illustrates how a structured development approach can address early-stage barriers. Building on prior cooperation with Nyeri Hill Farm, PDP supported the project with a technical and economic pre-feasibility study and a comprehensive project dossier for solution providers based in Germany. The project was also presented during an energy trade mission, organized by AHK Services Eastern Africa Ltd, facilitating direct exchange with interested companies and facilitating initial partnership discussions. This enabled the farm to make informed investment decisions, align the concept with its operational needs, and clarify financing and implementation pathways.
Stefanie Stemmer, Kenya Country Manager and Hydrogen Desk at PDP, explains: “By addressing financing requirements from the outset and involving implementation and financing partners early on, complex hydrogen projects can move beyond initial hurdles – including in developing and emerging economies.”
German and international solution providers support the Nyeri Hill Farm with this ambitious investment project. The planned set-up includes the innovative AEM electrolysis technology from German component manufacturer Enapter GmbH, to be coupled with the variable output of Soventix GmbH’s PV system through its subsidiary Soventix East Africa. PT MBR Global Indonesia is expected to act as the main contractor, overseeing installation to ensure the smooth integration of all components.
Take aways for local industrial companies
The project is not an exception. It highlights a pathway that can be replicated:
Structured project development, like with the support of PDP, helps turn complex ideas into implementable projects.
Strong technical partners help to get from plan to implementation
Addressing financing requirements early is critical.
For industrial companies considering hydrogen or ammonia solutions, the takeaway is clear: well-prepared projects are better positioned to explore and pursue financing options.
“Without the PDP team, we would not have embarked on this project. They accompanied us from the very beginning, showed us options for action, and enabled a trusting collaboration. Their support was particularly crucial in terms of financing and made it possible to successfully apply for UNIDO funding,” Boniface Mwangi concludes.
Looking to turn your project idea into a concrete investment case?
Discover the potential of green ammonia in the Kenya sector analysis.