Assessing Kenya’s green hydrogen potential for the commercial & industrial sector

This sector analysis delves into the promising hydrogen market in Kenya, providing cost estimations for producing green hydrogen using renewable energies and offering practical guidelines for launching hydrogen-related businesses. Targeted at German and European companies, it focusses on forming partnerships with local Kenyan enterprises that integrate hydrogen into their industrial processes.

Kenya is identified as a strategic hub for green hydrogen production, thanks to its political stability, strategic East African location, established trade links, and abundant renewable energy resources. The global demand for defossilised solutions and sustainable energy sources further amplifies the relevance of exploring green hydrogen opportunities in Kenya.

Harnessing Kenya's vast renewable resources—geothermal, hydro, wind, and solar—presents a viable pathway to produce green hydrogen. Locally produced hydrogen not only reduces dependence on fossil-based imports but also bolsters the country's energy independence. As technology costs decline and the market for defossilised products expands, the potential for green hydrogen continues to grow.

The analysis showcases business cases that demonstrate the practical application of green hydrogen in producing green ammonia and enhancing food production. Supported by interviews with local manufacturers and informal discussions, the analysis provides comprehensive business scenarios for replacing grey hydrogen with green hydrogen. It includes detailed estimations of system sizing, costs (incorporating electrolyser systems and solar PV plants), and the levelised cost of hydrogen (LCoH) based on local solar resources. Additionally, the analysis examines the import-export balance of hydrogen commodities and identifies industries with significant potential for green hydrogen applications.