IPS signs $400m deal for green hydrogen fertiliser plant with the Government of Uganda

In a pioneering effort, Industrial Promotion Services (IPS) and its project partner Westgass Internasjonal, a Norwegian green energy company working alongside Norfund signed a development agreement (JDA) with the Government of Uganda, led by the Ministry of Energy and Mineral Development to develop a green hydrogen-based fertiliser production facility.
Leveraging the country’s abundant renewable energy resources, the proposed project aims to produce 200,000 tons of fertiliser per year. The project will use renewable energy to produce hydrogen for the synthesis of ammonia, a key component in the production of fertilisers, to replace imported fertiliser produced from fossil fuel.
The plant will be strategically located at Karuma, Kiryandongo District, within the Bunyoro sub-region, to leverage its proximity to the 600 MW Karuma Hydropower Plant.
“we are very excited to be part of this catalytic project that reflects our commitment to climate action and the overall sustainable development agenda. This multifaceted project will contribute towards fostering low carbon economic development and promoting sustainable agriculture.”

The CEO of IPS, Mr. Galeb Gulam

He also mentioned as a long-term investor who have a wide range of businesses spanning multiple sectors such as energy, telecommunications, agro-based industries, pharmaceuticals, printing and packaging, IPS is developing their businesses to be vehicles that create economic value by improving people’s quality of life and restoring and protecting nature.
Further Mr Galeb relayed that the milestone would not have been attainable without the invaluable support of the Government of Uganda. “Uganda is embracing green technology to transform its agricultural sector and become a regional sustainability leader,” said Energy Minister Dr Ruth Nankabirwa Ssentamu who signed the JDA on behalf of the government.
“This project will not only reduce dependency on imported fertilizers and empower farmers but also catalyse Uganda's green hydrogen economy, fostering innovation in mobility, power generation, oxygen production, and other key sectors.”

Dr. Nankabirwa.

Odrek Rwabwogo, the Presidential Advisory Committee on Exports and Industrial Development (PACEID) chairman, emphasized the project’s support of Uganda’s export goals. “Utilizing Uganda’s rich natural resources and innovative technologies, this project is pointed to propel the agricultural sector towards achieving the ambitious $6 billion export target. PACEID’s role is to boost export capacity, explore market opportunities and cultivate a conducive environment for agricultural enterprises, ultimately benefiting farmers, rural communities, and the nation at large.”
The proposed project has also garnered support from likeminded development financial institutions. 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.
By Metrine Papa
Regional Communications Officer, East Africa