The cooperation will advance projects that will develop green hydrogen as part of the Kenya Energy Roadmap 2040.

Thomas Östros, EIB Vice President and Professor Njuguna Ndung’u, Cabinet Secretary, National Treasury and Economic Planning, signed a Joint Declaration on renewable clean hydrogen following discussions on green hydrogen investment

The EIB expects to initially mobilise €1.8m (£1.59m) of grants from the European Union (EU) and to appraise possible loan financing for larger green hydrogen related investment.

Ndung’u said, “Kenya has some of the best renewable energy sources in the world if the storage components were equally developed. 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 EIB to support renewable energy across Kenya.”

Over the last decade, EIB claims it has provided more than €5.3bn (£4.69m) for energy investment across Africa, including €418m (£370m) for geothermal, wind and solar investment as well as grid investment in Kenya.

Last year, the EIB commissioned a study that stated that harnessing Africa’s solar energy to produce 50 million tonnes of green hydrogen per year by 2035 can help secure global energy supply, create jobs, decarbonise heavy industry and transform access to clean water and sustainable energy.

Read more: EIB study highlights Africa’s green hydrogen potential

 Östros said, “As part of Team Europe, the EIB stands ready to enhance cooperation to develop public and private sector investment 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.”

In November last year, Kenya’s President William Ruto said the country is aiming to produce 30GW of green hydrogen production after signing a KES500bn deal with the UK to fast-track green investments.

Read more: Kenya targets 30GW of green hydrogen after signing strategic deal with UK

Davis Chirchir, Cabinet Secretary and Minister of Energy, said, “Kenya’s wind and solar power can be harnessed to produce green hydrogen and provide affordable power for economic development and industrial growth.

“Development of green hydrogen in Kenya has the potential to enable 100% of Kenya’s energy needs to be supplied by clean power.”