The logo of Fortescue Metals Group adorns their headquarters in Perth, Australia, File. REUTERS/David Gray/File Photo/File Photo

Australia's Fortescue Metals Group (FMG.AX) said on Tuesday its green energy unit will help fast-track the development of an affordable green fertiliser supply chain in Kenya.

Fortescue Future Industries (FFI) and the Kenyan government will together develop a 300 megawatt green ammonia and green fertiliser facility by 2025.

"For Kenya this will create fossil fuel free fertiliser, a strong local industry, skilled job creation, and lessen Kenya’s exposure to imports from foreign nations," FFI said in a statement.

The world's fourth largest iron ore producer has signed multiple agreements through FFI since last year as it strives to transition into a green energy company amid increasing calls for de-carbonisation. read more read more read more

The development of the facility in Kenya will be followed up by feasibility studies for two more projects in the country that are expected to scale up renewable electricity generation for green industries by up to 25 gigawatts.

The projects could produce up to 1.7 million tonnes of green hydrogen per year for exports, FFI said.

The green hydrogen and green ammonia facility will be located in the Naivasha vicinity of the Olkaria geothermal field, with FFI’s final investment decision expected in 2023.