AfriTrade Consulting Group, in collaboration with GOPA, is currently engaged in a consultancy with GIZ to evaluate Kenya’s readiness to transition to green steel production, leveraging green hydrogen and other Power-to-X technologies to decarbonize one of the most emissions-intensive industrial sectors. Building on Kenya’s abundant renewable energy potential, particularly in geothermal, wind, and solar resources, this assignment explores viable pathways to replace conventional coal-based blast furnace processes with hydrogen-based direct reduction of iron (H2-DRI) and electric arc furnace routes using scrap and renewable electricity.

We are conducting a comprehensive analysis of technical feasibility, economic viability under varying cost scenarios, supply chain requirements for green hydrogen and high-grade iron ore, and infrastructure needs, including dedicated renewable power generation and hydrogen production facilities. The study aligns with Kenya’s national climate commitments under the Paris Agreement, updated Nationally Determined Contributions, and industrial development objectives, positioning green steel as a catalyst for sustainable manufacturing, export competitiveness, and job creation in a low-carbon economy.

The consultancy includes a high-level review of enabling policy and regulatory frameworks; international certification standards, such as Responsible Steel and EU taxonomy requirements; fiscal incentives; potential carbon pricing instruments; and trade-related measures, including the European Union’s Carbon Border Adjustment Mechanism (CBAM). We will provide strategic recommendations to enhance investment attractiveness, mitigate compliance risks for exporters, and foster public-private partnerships to accelerate pilot projects and scale-up initiatives.

Through stakeholder engagements with government ministries, industry associations, and potential investors, the assignment delivers evidence- based insights to inform decision-making and roadmap development for green steel integration. This project will further strengthen our expertise in industrial decarbonization strategies, green value chain development, and climate-aligned policy advisory, affirming our role as a pivotal partner in guiding Kenya toward a resilient, competitive, and sustainable transformation of its heavy industry, aligned with global net-zero transitions.