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GREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAiiiEXECUTIVE SUMMARYiiiiGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAiiiiiiiiiEXECUTIVE SUMMARYGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAivEXECUTIVE SUMMARYivivGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAvEXECUTIVE SUMMARYvvFOREWORDThe energy sector is a key enabler in the pursuit of nationally set goals as espoused in the Kenya Vision 2030 and internationally set obligations that include the sustainable development goals(SDGs),climate agreements like the Paris Agreement and Africa Agenda 2063.Kenya has also made improvement of livelihoods and welfare of its citizens a top priority through the Bottom-Up Economic Transformation Agenda.Development of green hydrogen and its derivatives aligns with these national objectives.As the world navigates the evolving landscape of sustainable energy solutions,this green hydrogen strategy stands as a beacon of innovation and commitment towards a greener and more resilient future.Through meticulous research,collaboration,and forward-thinking insights,this strategy charts a course towards harnessing the potential of green hydrogen as a key driver of our energy transition.The analysis showed that Kenya has sufficient renewable energy resources that are available in the country for large scale production of green hydrogen without harming the availability and supply to electricity consumers.This comprehensive approach underscores the strategys commitment to nurturing a shared vision,elevating green hydrogen to a pivotal cross-cutting factor in Kenyas development agenda.By acting as a catalyst for sustainable socio-economic advancement,the strategy harmonizes with the nations steadfast pursuit of sustainable growth.This commitment to sustainable advancement is palpable in the strategys objectives,prudently crafted to prioritize economic expansion,the creation of job opportunities,and the promotion of environmental stewardship.As both a visionary framework and a pragmatic guide,it articulates our collective ambition while concurrently providing tangible direction to navigate the passage from conception to realization.Davis ChirchirCabinet SecretaryMinistry of Energy and Petroleum GREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAviEXECUTIVE SUMMARYviviPREFACEThe significance of green hydrogen production and its multifaceted applications are deeply woven into Kenyas ambitious green economy agenda.Four pivotal areas have been identified where the focus will be resolute:the formulation of an all-encompassing green hydrogen strategy and a roadmap;secondly,the cultivation of an environment conducive to growth facilitated through the establishment of regulatory and policy frameworks that will enable and propel green hydrogen endeavours;thirdly,the facilitation of financial mechanisms and technical guidance to foster its deployment;and finally,the dynamic exploration and testing of cross-sector applications that capitalise on the potential of green hydrogen.Kenyas green hydrogen strategy is the product of concerted effort by the Green Hydrogen Working Group comprising officials from government,development partners,private sector and academia.I would like to extend special thanks to European Delegation to Kenya who supported the development of the Strategy by availing the Technical Assistance Facility(TAF)team of consultants.Special thanks also to the continued support of the German government through GIZ in supporting the development of the green hydrogen baseline study and contributing to the strategy and roadmap development process and finalisation.I would like to express deep appreciation to the Technical Working Group,all parties and stakeholders who have wholeheartedly supported the development of the strategy and roadmap.Their unwavering commitment and valuable contributions have been pivotal in crafting a comprehensive Green Hydrogen Strategy and Roadmap towards a greener and sustainable energy future for Kenya.Alex K.WachiraPrincipal Secretary State Department for EnergyGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAviiEXECUTIVE SUMMARYviiviiThe Green Hydrogen Strategy and Roadmap for Kenya has been developed by the European Union Global Technical Assistance Facility(GTAF)for Sustainable Energy,in close cooperation with the Delegation of the European Union to Kenya(EU),the Ministry of Energy and Petroleum(MoEP)for Kenya,and Deutsche Gesellschaft fr Internationale Zusammenarbeit(GIZ).Special thanks go to the following individuals who contributed their expert knowledge,time,and effort to the realisation of this Strategy and Roadmap:Furthermore,the process received extensive support from a diverse range of stakeholders,including the Green Hydrogen Working Group(co-chaired by MoEP and EU),government ministries,public sector institutions,academia,development finance institutions(DFIs),the private sector,and the Green Hydrogen Organisation.Government ministries and public sector institutions:Ministry of Agriculture and Livestock Development.Ministry of Investments,Trade,and Industry Ministry of Roads and Transport The National Treasury and Economic Planning Energy and Petroleum Regulatory Authority(EPRA)Nikos Sakellariou(GTAF)Michael Ball(GTAF)Joao Nicolau(GTAF)Paul Okan-Adjetey(GTAF)Clarice Wambua(GTAF)Evan Wanjiru(GTAF)Andris Piebalgs(GTAF)Federico Villatico(GTAF)Martin Andersen(EU)Davide Danelli(EU)Eng.Isaac Kiva(MoEP)Eng.Benson Mwakina(MoEP)Eng.Mungai Kihara(MoEP)Edna Mutevu(MoEP)Mercy Kimwa(MoEP)Hanna Salian(GIZ)Kevin Mwangi(GIZ)ACKNOWLEDGEMENTSGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAviiiEXECUTIVE SUMMARYviiiviii Geothermal Development Company(GDC)Kenya Association of Manufacturers(KAM)Kenya Bureau of Standards(KEBS)Kenya Electricity Generating Company(KenGen)Kenya Electricity Transmission Company(KETRACO)Kenya Power and Lighting Company(KPLC)Rural Electrification and Renewable Energy Corporation(REREC)Private sector associations:Kenya Private Sector Alliance(KEPSA)Electricity Sector Association of Kenyan(ESAK)Academia:Jomo Kenyatta University of Agriculture and Technology Kenyatta University Strathmore University Machakos University Technical University of KenyaDevelopment finance institutions:European Investment Bank(EIB)Agence Franaise de Dveloppement(AfD)Kreditanstalt fr Wiederaufbau(KfW)Japan International Cooperation Agency(JICA)Foreign,Commonwealth&Development Office(FCDO)GREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAixEXECUTIVE SUMMARYixixTABLE OF CONTENTSForeword vPreface viAcknowledgments viiAbbreviations viiiExecutive summary 1TABLE OF FIGURESFigure 1:Kenyas Unique Window of Opportunity in Green Hydrogen Sustainable Economic Transformation and Green Growth 2Figure 2:Objectives and Outcomes of Kenyas Green Hydrogen Vision 5Figure 3:Kenyas Green Hydrogen Vision and Targets 6Figure 4:Building Blocks of Kenyas Green Hydrogen Vision 7 GREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAxEXECUTIVE SUMMARYxxABBREVIATIONSADCAgricultural Development CorporationAFAAgriculture and Food AuthorityAfCTAAfrican Continental Free Trade AreaAGs officeOffice of the Attorney GeneralAGHAAfrica Green Hydrogen AllianceAHPAfrican Hydrogen PartnershipASALArid and Semi-Arid LandsASTGSAgricultural Sector Transformation and Growth StrategyBAUBusiness As UsualBESSBattery Energy Storage SystemBETABottom-up Economic Transformation AgendaBNEFBloomberg New Energy Finance LimitedBtuBritish Thermal UnitCANCalcium Ammonium NitrateCAPEXCapital ExpenditureCBAMCarbon Border Adjustment Mechanism CBOCommunity Based OrganisationsCFDContract-For-DifferenceCIDPCounty Integrated Development PlanCO2Carbon DioxideDAPDiammonium PhosphateDFIDevelopment Finance InstitutionDRIDirect Reduced IronDSMDemand Side ManagementEBRDEuropean Bank for Reconstruction and Development EFTAEuropean Free Trade Association(Iceland,Liechtenstein,Norway,Switzerland)e.g.For exampleEHBEuropean Hydrogen BankEIBEuropean Investment BankEPRAEnergy and Petroleum Regulatory AuthorityERCEnergy Regulatory CommissionESAKElectricity Sector Association of Kenya ETCEnergy Transitions CommissionEUEuropean UnionEUDEU DelegationEVElectric VehicleFAFBFertilizer and Animal Foodstuffs BoardGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAxiEXECUTIVE SUMMARYxixiFAOFood and Agriculture OrganisationFCCFuel Energy CostFERFAForeign Exchange Rate Fluctuation AdjustmentFFIFortescue Future IndustriesFIDFinal Investment DecisionFiTFeed-in-Tariff GDCGeothermal Development CompanyGH2Green Hydrogen GH2-PCCGreen Hydrogen Program Coordination CommitteeGHGGreenhouse GasGIZDeutsche Gesellschaft fr Internationale Zusammenarbeit GTAFGlobal Technical Assistance FacilityGWGigawattGWECGlobal Wind Energy CouncilH4DHydrogen for Development HDVHeavy Duty VehicleHINT.COHydrogen Intermediary Company GmbHIAInflation AdjustmentIEAInternational Energy AgencyIFCInternational Finance CorporationIPCEIImportant Project of Common European InterestIPPIndependent Power ProducerIPSIndustrial Promotion ServicesIRAInflation Reduction ActIRENAInternational Renewable Energy AgencyISOInternational Organization for StandardizationKALROKenya Agricultural and Livestock Research OrganizationKAMKenya Association of ManufacturersKCAAKenya Civil Aviation AuthorityKEKey ExpertKEBSKenya Bureau of StandardsKenGenKenya Electricity Generating Company KEPHISKenya Plant Health Inspectorate ServiceKEPSAKenya Private Sector AllianceKEREAKenya Renewable Energy AssociationKETRACOKenya Electricity Transmission CompanyKfWKreditanstalt fr WiederaufbaukgKilogrammeKNBSKenya National Bureau of StatisticsKNTCKenya National Trading CorporationGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAxiiEXECUTIVE SUMMARYxiixiiKPLCKenya Power and Lighting CompanyKRAKenya Revenue AuthorityKshKenya shillingsKTDAKenya Tea Development AgencykWhKilowatt HourkWpKilowatt peakLCOELevelised Cost of ElectricityLCOHLevelised Cost of HydrogenLCPDPLeast Cost Power Development PlanLT-LEDSLong-Term Low Emissions and Development StrategymMetreM&EMonitoring and EvaluationMTBEMethyl Tert-Butyl EtherMDBMultilateral Development BankMITIMinistry of Investments,Trade and IndustryMoALDMinistry of Agriculture and Livestock Development MoEMinistry of EducationMoEACMinistry of East African Community,the ASALs,and Regional DevelopmentMoECCFMinistry of Environment,Climate Change and ForestryMoEPMinistry of Energy and PetroleumMoPSGAAMinistry of Public Service,Gender,and Affirmative ActionMoICTMinistry of Information,Communications and The Digital EconomyMoLPWHMinistry of Lands,Public Works,Housing,and Urban DevelopmentMoRTMinistry of Roads and TransportMoWSIMinistry of Water,Sanitation and Irrigation MoYASAMinistry of Youth Affairs,Sports and The ArtsMtMillion TonsMTPMedium Term PlanMTPAMetric Ton Per AnnumMWMegawattNCANational Construction AuthorityNCCAPNational Climate Change Action PlanNCPBNational Cereals and Produce BoardNDCNationally Determined ContributionNEMANational Environment Management AuthorityNGONon-Governmental Organisation NITANational Industrial Training AuthorityNKE Non-Key ExpertNLCNational Land CommissionNZENet Zero Emissions GREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYAxiiiEXECUTIVE SUMMARYxiiixiiiOPEXOperational ExpenditurePPAPower Purchase AgreementPPPPublic-Private PartnershipPTCProduction Tax CreditPtXPower-to-XPVPhotovoltaicRDIResearch,Development and InnovationRERenewable EnergyRERRural Electrification ProgramRERECRural Electrification and Renewable Energy CorporationSAFSustainable Aviation FuelsSDGSustainable Development GoalSEZSpecial Economic ZoneSGRStandard Gauge RailwaySWOTStrengths,Weaknesses,Opportunities,ThreatsTAFTechnical Assistance FacilityUNFCCCUnited Nations Framework Convention on Climate ChangeUSUnited StatesUSDUnited States DollarVATValue Added TaxWACCWeighted Average Cost of CapitalWARMAWater Resource Management AuthorityWRAWater Resources AuthorityGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYA1EXECUTIVE SUMMARY11In line with Kenyas Vision 2030,which seeks to accelerate sustainable growth and transform the country into a competitive and prosperous country with a high quality of life,Kenya has made improving the livelihoods and welfare of its citizens a top priority through the Bottom-Up Economic Transformation Agenda.Recognising the significance of green hydrogen beyond its role as an energy source,Kenya now aims to harness its transformative potential as a cross-cutting enabler for the countrys development agenda and as a catalyst for sustainable socio-economic development.Recent years have witnessed a growing sense of urgency to transition to sustainable and clean energy sources driven by the pressing challenges of climate change and the imperative to reduce carbon emissions.Africa holds more than 10,000 GW in renewable energy potential,positioning the continent as a powerhouse that can contribute to keeping global temperature rise within the 1.5oC objective of the Paris Agreement.1 A particularly promising avenue that has gained traction is the use of green hydrogen derived from renewable energy sources.Green hydrogen has the potential to play a pivotal role in global energy transformation,offering substantial opportunities to decarbonise various sectors,enable sustainable industrial processes,and facilitate the transition to a low-carbon future.Amidst this global wave of interest in green hydrogen,Kenya finds itself uniquely positioned to capitalise on the unprecedented political and business momentum surrounding this nascent industry.With a remarkable track record in developing a diversified power generation mix,approximately 90%of Kenyas electricity is currently sourced from renewable energy sources.2 The country has vast untapped renewable energy potential-including a leading position in geothermal power within Africa.Exploring options for producing green hydrogen from green electricity is a logical next step in building a green economy in Kenya and is driven by a robust culture of innovation and a long-standing commitment to sustainable development.This juncture presents a unique window of opportunity for Kenya to pursue business opportunities in the emerging green hydrogen industry.By doing so Kenya can drive green economic growth,contribute to the profound socio-economic transformation of the country,and play a proactive role in global collaborative efforts to tackle the impacts of climate change.The vibrant private sector that is actively pursuing multiple green hydrogen projects in Kenya provides compelling evidence of the countrys preparedness and potential in the field of green hydrogen.1 AfDB.Africas Climate Opportunity:Adapting and thriving.(2015).https:/www.afdb.org/fileadmin/uploads/afdb/Documents/Events/COP21/The_African_Development_Bank_at_the_UNFCCC_COP21_meeting.pdf2 EPRA.Biannual Energy and Petroleum Statistics Report,Financial Year 2022/2023.(2023).https:/www.epra.go.ke/biannual-energy-and-petroleum-statistics-report-for-the-financial-year-2022-2023/EXECUTIVE SUMMARYGREEN HYDROGEN STRATEGY AND ROADMAP FOR KENYA2EXECUTIVE SU