European Investment Bank, the world’s largest multilateral bank and leading global financier of renewable energy, has pledged to upscale its investment in green hydrogen in Kenya.

The pledge was made during a meeting between European Investment Bank Vice President Thomas Östros and National Treasury and Economic Planning CS Prof Njuguna Ndung’u.

Östros and Prof Ndung’u signed the Joint Declaration on Renewable Clean Hydrogen in Nairobi after earlier talks on green hydrogen investment with President William Ruto.

The Treasury CS noted that Kenya has some of the best sources of renewable energy in the whole world and rooted for the sustained development of the storage components as well.

“The route to storage has the potential to develop green hydrogen to deliver sustainable, green and inclusive growth. Today’s agreement builds on decades of close cooperation with the European Investment Bank to support renewable energy across Kenya,” Ndung’u said.

The CS added, “Together we will develop projects that will develop green hydrogen as part of the Kenya Energy Roadmap 2040.”

Energy CS Davis Chirchir said Kenya’s wind and solar power can be harnessed to produce green hydrogen and provide affordable power for economic and industrial development.

“The Joint Declaration between Kenya and the European Investment Bank will improve understanding of how best to identify, structure, unlock and implement green hydrogen investment. Development of green hydrogen in Kenya has the potential to enable 100 per cent of Kenya’s energy needs to be supplied by clean power,” noted Chirchir.

Östros said European Investment Bank will work with local partners to develop public and private sector investments that uses wind, solar and geothermal resources to produce green hydrogen, combat climate change and support economic development in Kenya.

“Our energy and finance experts at the EIB Regional Hub in Nairobi and at headquarters will work closely with Kenyan partners to identify and develop new renewable energy projects and unlock construction of hydrogen production infrastructure,” he said.

And European Union (EU) Ambassador to Kenya Henriette Geiger affirmed the commitment by Kenya and EU to tackle climate change and to increase the use of renewable energy.

The new deal will enhance support for development of green hydrogen schemes in Kenya with EIB set to raise Sh245.7 million in grants from the EU and to evaluate possible loan financing for larger green hydrogen related investment.

In the last 10 years, EIB has provided more than EUR5.3 billion for energy investment across Africa, including EUR418 million for geothermal, wind and solar as well as grid investment in Kenya.