Uganda joins global race for green hydrogen

What the report says

The Independent Uganda reports that Uganda is moving to position itself in the emerging green hydrogen economy, seeking to use its renewable energy resources for industrial growth. The Kampala-datelined analysis says the government first signalled this ambition at COP27 in Egypt in 2022, when the Ministry of Energy and Mineral Development signed an MoU with French firm Hydrogène de France to explore large-scale production. Although HDF is no longer developing projects in Uganda, the agreement is described as an early step in the country’s plans.

A more concrete development followed in 2024, according to the report, when the ministry, Industrial Promotion Services — the infrastructure arm of the Aga Khan Fund for Economic Development — and Norway’s Westgass Internasjonal signed a joint development agreement. The planned $400 million project at Karuma in Kiryandongo District is expected to use 100MW of electricity from Karuma Hydropower Station to produce green hydrogen through electrolysis. Its target is to make 200,000 tonnes of zero-emission mineral fertilisers each year, potentially reducing dependence on imported fossil fuel-based fertilisers.

The article cites Arno van den Bos of the International Renewable Energy Agency, who said Uganda’s hydropower flexibility could work well with electrolysers and help integrate more solar and wind power over time. He also suggested fertiliser production may be a sensible priority given agriculture’s importance to Uganda, while noting hydrogen is most useful for hard-to-decarbonise sectors such as ammonia, steel, chemicals, shipping and aviation.

The broader context is a global push to build hydrogen supply chains, including ports, pipelines and corridors linking producers to industrial markets. The Independent notes that Uganda may have an opportunity, but competition from regions such as North Africa, with strong renewable resources and closer access to Europe, could shape its export prospects.