Wednesday, 4 June, 2025
Uganda, officially known as the Republic of Uganda, is a landlocked country situated in East Africa. As of 2024, Uganda has an estimated population of approximately 45.9 million people[1]. With a GDP of USD 48.77 billion as of 2023, its economy is primarily driven by agriculture and tourism[2]. Uganda has also discovered significant oil reserves and as of 2024, its proven oil reserves was found to be 6.5 billion barrels of oil[3].
Uganda’s electricity sector is dominated by hydropower. Renewable energy overall is responsible for contributing to 92.4 per cent of the electricity generation capacity (out of 1.32 GW) and about 100 per cent of electricity generation (out of 5.471 TWh) as of 2022[4]. There is also some contribution of biomass (471 GWh and 96 MW) to the electricity mix of Uganda. Solar, wind and fossil fuels contribute negligibly to the overall electricity generation capacity and electricity generated in the country.
The country also has baseload geothermal potential owing to the presence of a portion of the geologically active Great African Rift Valley within its borders, which is characterised by continental rifting (separating Africa into Nubian and Somalian sub-plates) and associated volcanism. About 1.5 GW of estimated geothermal potential exists within the country[5]. The Government of Uganda is exploring this clean and baseload source of energy and geothermal energy presents a great opportunity for the country to utilise its skills in oil & gas drilling for clean energy production.
Green hydrogen presents a transformative opportunity for Uganda, offering solutions to some of the country’s most pressing challenges in energy, agriculture, and industrial development. With abundant hydropower and biomass resources, Uganda is well-positioned to produce green hydrogen through electrolysis using renewable energy and through biomass gasification. This clean fuel can play a crucial role in reducing reliance on biomass and imported fossil fuels, thereby enhancing energy security and supporting the country’s decarbonisation goals.
[3] Uganda’s proven oil reserves may hit 6.5 billion barrels amidst new exploration | Business Insider Africa
[4] IRENA stats tool, July 2024
[5] Government of Uganda signs MOU for geothermal developmen
Agriculture is central to Uganda’s economy, employing about 72 per cent of the workforce. [1] However, the sector faces challenges due to limited access to affordable fertilizers, leading to low productivity. Currently, Uganda imports most of its fertilisers, exposing farmers to high costs and supply uncertainties.
In 2024, the Industrial Promotion Services (IPS), the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development, and Westgass Internasjonal, a Norwegian green energy company, and Norfund, a Norwegian Government owned investment authority, signed a joint development agreement (JDA) with the Government of Uganda, to develop a green hydrogen based fertiliser production facility in Uganda, producing an overall 200 KTPA of calcium ammonium nitrate (CAN) and nitrogen, phosphorus, and potassium (NPK) fertilisers in the country, to reduce reliance on fertiliser imports [2] .
In 2022, Ministry of Energy and Mineral Development (MEMD) of the Government of Uganda signed an MoU with HDF Energy to establish a solar PV based green hydrogen production and storage facility, aimed at replacing existing diesel generator sets [3]
Uganda has not yet released a national strategy for green hydrogen yet. However, they are prioritising the production of green hydrogen-based fertilisers. This initiative aims to meet the essential needs of the agricultural sector and significantly cut down greenhouse gas emissions.
As of 2025, Uganda has not yet established specific hydrogen regulations.
Uganda’s renewable energy potential is central to its green hydrogen ambitions, providing a clean and sustainable foundation for hydrogen production. The country is endowed with abundant hydropower resources, which currently account for over 80 per cent of its grid electricity. With multiple rivers and a favorable topography, Uganda has an estimated hydropower potential of over 4,500 MW, of which less than half has been exploited. [1] In addition, Uganda enjoys high solar irradiance levels—averaging 5.1 kWh/m²/day across most regions—making it ideal for solar PV deployment. [2]
This combination of untapped hydropower and consistent solar availability offers a reliable, low-cost energy base for producing green hydrogen via electrolysis. As the country expands its renewable capacity—through projects such as Ayago (840 MW), Kiba (400 MW), and Oriang (392 MW)—surplus clean electricity can be diverted to hydrogen production, particularly in off-peak periods or remote locations. [3] Leveraging these resources not only makes green hydrogen viable in Uganda but also enhances grid stability, supports rural electrification, and reduces dependence on fossil fuel imports. In this context, renewable energy is not just an enabler but a prerequisite for building a cost-effective and emissions-free hydrogen economy.
Uganda has not yet released any plans to take up large scale manufacturing of equipment for green hydrogen and its value chain like electrolysers, hydrogen pipelines, hydrogen storage tanks, solar panels, wind turbines, etc.
A significant development is the establishment of a green hydrogen-based fertilizer production facility in Karuma, Kiryandongo District. This USD400 million project is a collaboration between Industrial Promotion Services (IPS), the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, and Westgass Internasjonal, a Norwegian green energy company. The plant aims to produce 200,000 tons of fertilizer annually, utilizing 100 MW of renewable energy sourced from the nearby 600 MW Karuma Hydropower Plant. Additionally, it is expected to create approximately 300 direct jobs and significantly reduce greenhouse gas emissions by avoiding over 200,000 tons of CO ₂ per year. [1]
In another initiative in 2022, the Ugandan Ministry of Energy and Mineral Development has signed a memorandum of understanding with HDF Energy to establish the country’s first green hydrogen power plant. This facility will enable large-scale storage of intermittent renewable solar energy in the form of hydrogen and generate electricity using hydrogen feedstock in a fuel cell. The project aims to diversify Uganda’s energy mix, which currently relies heavily on hydro and thermal power plants and expand its renewable energy generation capacity. [2]