Ethiopia: Dangote Hires Spanish Firm for Ethiopia's $4 Billion Fertiliser Project

Dangote Group hired Spanish engineering company Técnicas Reunidas to supply two hydrogen reformers for its fertiliser plant under construction in Gode, Somali region. The order covers design, material procurement, manufacturing and delivery. The equipment is central to producing the hydrogen needed for fertiliser manufacturing.

The reformers will be supplied through TR-Technical, Técnicas Reunidas’ heat-transfer equipment division. They will use process technology licensed by Denmark’s Topsoe. Together, the two units are expected to produce more than 200,000 normal cubic metres of hydrogen per hour. The contract’s value was not disclosed.

Técnicas Reunidas is expected to complete delivery within 18 months. The reformers form part of a much larger complex designed to produce three million tonnes of urea each year. The project’s estimated cost has risen above $4 billion as its scope expanded to include gas, power, packaging and NPK blending facilities.

A hydrogen reformer is industrial equipment that extracts hydrogen from a fuel such as natural gas. In fertiliser production, that hydrogen is combined with nitrogen to make ammonia. Ammonia is then used to produce urea and other nitrogen fertilisers. The source article does not explain the chemistry, but this is the established role of reformers in conventional fertiliser plants.

At Gode, the two reformers will use process technology licensed by Danish company Topsoe. They are expected to produce more than 200,000 normal cubic metres of hydrogen per hour. The hydrogen will support the complex’s planned output of three million tonnes of urea annually.

Natural gas from the Calub field will feed the wider project. Chinese company GCL Group has agreed to supply that gas for 25 years. This links local gas extraction to hydrogen production and, ultimately, fertiliser manufacturing. If construction stays on track, operations are expected to begin in 2029.

The Gode fertiliser project is one of Ethiopia’s largest planned industrial investments. Its estimated cost has risen from $2.5 billion to more than $4 billion. The expanded complex is designed to produce three million tonnes of urea annually, with a separate NPK blending plant capable of producing two million tonnes each year.

Its hydrogen system is also substantial. Técnicas Reunidas will supply two reformers with a combined expected output of more than 200,000 normal cubic metres of hydrogen per hour. The project includes a 110-kilometre gas pipeline and a 120-megawatt power plant. Natural gas will come from the Calub field in the Ogaden basin.

The facility is expected to begin operations in 2029. It could also supply fertiliser markets across East Africa. The scale means the project could affect Ethiopia’s import needs, agricultural supply and industrial use of domestic gas, provided construction and commissioning proceed as planned.

The original Gode project was valued at $2.5 billion. Its estimate later rose to more than $4 billion because Dangote Group and its partners expanded the development beyond a urea plant. The extra facilities are intended to support fuel supply, energy, packaging and additional fertiliser production.

The expanded plan includes a 110-kilometre pipeline from the Calub gas field, a 120-megawatt power plant and a polypropylene packaging facility. It also adds an NPK blending plant designed to produce two million tonnes annually. These components increase both the project’s construction requirements and its expected production range.

The larger investment connects gas extraction, electricity generation and fertiliser manufacturing in one complex. Prime Minister Abiy Ahmed and Aliko Dangote reviewed the construction site in May 2026, when the higher estimate was reported. The government has sought to accelerate construction beyond the original 40-month timeline.

Dangote Group is the Nigerian-led private investor and majority owner of the joint venture, holding a 60% stake. It is developing the Gode complex with Ethiopian Investment Holdings, the state-owned investment fund, which owns the remaining 40%. Dangote is also considering offering at least 10% of the Ethiopian venture to local investors after production stabilises.

GCL Group, a Chinese company, has signed a 25-year agreement to supply natural gas from the Calub field in the Ogaden basin. That gas will support the complex’s hydrogen and fertiliser production. Técnicas Reunidas is supplying the hydrogen reformers, but it is not listed as an owner.

The Ethiopian government is represented in the venture through Ethiopian Investment Holdings. Prime Minister Abiy Ahmed has described the project as strategic for agricultural transformation, food security and economic self-reliance. Officials expect it to reduce imports, support farmers and create employment.

Ethiopia currently imports nearly all its fertiliser. A domestic complex producing three million tonnes of urea each year, plus two million tonnes of NPK blends, could reduce the country’s need to buy fertiliser abroad. Lower imports could ease pressure on foreign-currency reserves, a benefit highlighted by the government’s focus on self-reliance.

The mechanism is direct. Local gas from the Calub field would feed the project, while the reformers produce hydrogen for fertiliser manufacturing. Domestic output could give farmers a more local supply of key fertiliser products. The government expects this to reduce foreign-currency expenditure and support agricultural production.

These outcomes depend on the plant being completed and operating as planned. The complex is expected to start in 2029 and could supply markets across East Africa. It may also create employment and strengthen Ethiopia’s agricultural transformation, though the article does not quantify those effects.

Urea is a concentrated nitrogen fertiliser used to provide crops with nitrogen. NPK fertilisers contain three major plant nutrients: nitrogen, phosphorus and potassium. The article gives the Gode complex a three-million-tonne annual urea design and a separate two-million-tonne NPK blending capacity. It does not define the products, so these descriptions use established agricultural knowledge.

Natural gas matters because it can provide hydrogen for making ammonia. Ammonia is then used to manufacture urea. The Gode project will obtain gas from the Calub field through a 25-year supply agreement with GCL Group. Técnicas Reunidas’ two reformers will produce more than 200,000 normal cubic metres of hydrogen per hour.

NPK fertilisers require blending different nutrient sources, while urea focuses on nitrogen. The expanded complex therefore combines hydrogen-based urea production with a separate NPK facility. Together, they are intended to improve Ethiopia’s domestic fertiliser supply and potentially serve East African markets.