Dangote hires Spanish engineering firm for $4 billion Ethiopia fertiliser plant

Dangote Group has awarded a contract to Spanish engineering firm Técnicas Reunidas for the supply of hydrogen production equipment for its $4 billion fertiliser plant under development in Ethiopia.

The contract, announced on October 28, 2026, covers the design, procurement, manufacturing and supply of two hydrogen production reformers for the ammonia and urea fertiliser complex being developed in partnership with Ethiopian Investment Holdings (EIH).

The development marks another milestone in the Nigerian conglomerate’s expansion into Ethiopia’s industrial sector, as it seeks to strengthen its fertiliser production capacity across Africa.

The project is located in Gode, in Ethiopia’s Somali Region, approximately 1,200 kilometres southeast of Addis Ababa.

Técnicas Reunidas to supply hydrogen reformers

The contract will be executed by TR-Technical, a division of Técnicas Reunidas specialising in heat-transfer equipment.

The company will supply two hydrogen production reformers with a combined production capacity exceeding 200,000 normal cubic metres of hydrogen per hour.

• The equipment is expected to be delivered within a maximum of 18 months. Danish technology company Topsoe will provide the technology licence for the reformers, which are critical components in ammonia production.
• Hydrogen is an essential input in ammonia manufacturing, which subsequently serves as the foundation for producing urea fertiliser.
• The equipment will therefore play a significant role in the plant’s production process once operations commence.

The contract also strengthens Técnicas Reunidas’ presence in Africa’s industrial sector, particularly in hydrogen production technology.

Dangote targets three million tonnes annually

The Gode fertiliser complex is designed to produce up to three million tonnes of urea annually, positioning it among Africa’s major fertiliser manufacturing facilities.

The project is being developed through a partnership between Dangote Group and EIH, Ethiopia’s state-owned investment holding company.

• Once operational, the facility is expected to utilise Ethiopia’s natural gas resources to produce fertiliser locally, reducing the country’s dependence on imports.
• Ethiopia currently relies heavily on imported fertiliser to support agricultural production, exposing the country to fluctuations in international prices and foreign exchange pressures.

The project is also expected to strengthen domestic agricultural supply chains and create opportunities for exports to neighbouring African markets.

Dangote expands Ethiopia fertiliser investment

This contract comes months after Dangote Group increased its planned investment in the Ethiopian fertiliser project from $2.5 billion to more than $4 billion, as part of efforts to expand the facility’s production capacity and supporting infrastructure.

• Earlier in March 2026, Nairametrics reported that Dangote Industries Limited signed a $4.2 billion natural gas supply agreement with China’s GCL Group. The 25-year agreement is expected to provide a steady supply of natural gas to power the Ethiopian fertiliser complex once operational.
• In August 2025, Nairametrics reported that Dangote Group signed a $2.5 billion agreement with the Ethiopian government to establish the fertiliser facility. Under the agreement, Dangote Group holds a 60% stake, while Ethiopian Investment Holdings owns the remaining 40%.