Starkmacher Impact (SMI)

Technological Approach: Power-to-X (PtX)

At the core of the investment lies a fully integrated Power-to-X system developed for Nyeri Hill Farm based on the GIZ/PDP-H2 feasibility study:

• 550 kWp photovoltaic system (0.55 MW) with grid feed-in capability (net metering, 95 MWh annually) and a 250 kWh battery energy storage system (BESS).
• PEM electrolyser producing green hydrogen using locally available and treated water resources.
• Haber-Bosch synthesis unit combined with an air separation unit producing green ammonia (NH₃), fully replacing conventional calcium ammonium nitrate fertiliser (100% substitution rate).
• Oxygen as a by-product supplying the local Consolata Hospital with medical oxygen while excess volumes are commercialised.

Blended Finance Structure: SMIRF

The project is based on an innovative revolving fund structure known as the Starkmacher Impact Revolving Fund (SMIRF).

Rather than distributing financial savings resulting from reduced fertiliser imports and oxygen procurement to lenders or investors, these savings are recycled into new social impact projects within the region.

Revenue streams are generated through:

• Medical oxygen supply to Consolata Hospital (54%)
• Avoided fertiliser procurement costs (42%)
• Electricity feed-in revenues (4%)

The long-term objective is the establishment of the Green Hydrogen Innovation Center (GHIC), providing local technical education and vocational training while ensuring that future cost savings continue to finance social infrastructure and community development. The model is designed for replication across additional regions and agricultural value chains.

Impact Profile

Region

Sub-Saharan Africa

Country

Kenya (Nyeri County)

Impact Investing Classification

Genuine Impact Investing

IMP Classification

C — Contribute to Solutions

Reference Frameworks

UN Sustainable Development Goals (SDGs)

SMI Impact Measurement Framework (Impact3)

Impact Measurement & Management

Yes — quantitative and qualitative KPIs implemented

Investor Contribution

Provision of capital in an underserved market, signalling effects for future investment, and contribution to systemic transformation.

Relevant SDGs and Impact Pathways

The project contributes to multiple Sustainable Development Goals, particularly in the areas of climate action, clean energy, food security, health, decent work and industrial innovation.

Problem and Solution

Problem

Coffee production in East Africa generates substantial greenhouse gas emissions across the value chain, particularly through fossil-fuel-based fertilisers and insufficient access to reliable energy and healthcare infrastructure in rural areas.

Kenya imports almost all mineral nitrogen fertilisers, creating significant strategic dependencies and economic vulnerabilities. Supply chain disruptions following the war in Ukraine further intensified these challenges.

Solution

SMI combines solar generation, electrolysis and ammonia synthesis into a closed-loop Power-to-X ecosystem directly located on the farm.

Green hydrogen is converted into climate-neutral fertiliser, while oxygen produced during electrolysis secures essential medical supply for Consolata Hospital.

The revolving SMIRF mechanism ensures that cost savings generated by the project continue to finance education, healthcare and community development within the region.

Impact Measurement & Management (IMM)

The project operates under a structured Impact Measurement & Management framework based on SDG indicators and SMI's proprietary "Impact3" methodology.

Each impact pathway is linked to measurable quantitative indicators.

Environmental Indicators

• CO₂ emissions avoided (tCO₂e per year)
• Share of green fertiliser utilisation
• Renewable electricity generation (kWh)

Social and Health Indicators

• Volume of medical oxygen supplied to Consolata Hospital
• Number of patients benefiting from improved healthcare provision

Economic Indicators

• Procurement costs avoided
• SMIRF proceeds reinvested locally
• Replication and scaling rates

Systemic Indicators

• Number of replication projects and partner models
• Number of co-investors mobilised
• Countries and regions reached

Community Development Indicators

• Long-term financing of education and community infrastructure through the Green Hydrogen Innovation Center (GHIC)

Impact Risk Analysis

Evidence Risk

Low — supported by UNIDO and GIZ monitoring frameworks and standardised KPIs.

Efficiency Risk

Low — proven technologies combined through established industrial processes.

External Risk

Medium — exposure to political risk and import dependencies in Kenya.

Execution Risk

Medium — pilot project characteristics with first replication projects currently under development.

"Nyeri Hill demonstrates that sector coupling can do more than decarbonise industry — it can strengthen the social fabric of entire communities."

Mathias Kaps

CEO, Starkmacher Impact

Case Study Provider

Starkmacher Impact GmbH (SMI)

Starkmacher Impact views impact investing as a catalyst for systemic transformation. The company develops and supports projects that combine technological innovation, social justice and environmental sustainability, with a particular focus on the Global South.

Organisation

Starkmacher Impact GmbH (SMI)

Market Participant

Asset Manager / Project Developer

Organisation Type

Social impact enterprise

Asset Classes

Real Assets, Blended Finance, Revolving Funds

Contact Person

Mathias Kaps (CEO)

Location

Germany

Website

https://www.starkmacherimpact.co/en

Seeking Co-Investors

Yes – actively seeking partners for additional regions and replication projects

Case Study Date

2025