Namibia Greenlights $10 Billion Green Hydrogen Project
Once operational, the project will produce 2 million tons of green ammonia
The Government of the Republic of Namibia approved the government’s entry into a $10 billion Feasibility and Implementation (FIA) agreement with Hyphen Hydrogen Energy to develop, implement, and operate Sub-Saharan Africa’s first large green hydrogen project as part of the government’s green hydrogen strategy.
Hyphen Hydrogen Energy is a Namibian registered green hydrogen development company specifically formed to develop green hydrogen projects in Namibia for international, regional, and domestic supply.
The country’s cabinet developed the agreement in collaboration with the inter-ministerial Green Hydrogen Council and supported by international advisors.
At full-scale development expected before the end of 2030, the project will produce 2 million tons of green ammonia annually for the regional and global markets.
Under the pact, Hyphen will provide for the project’s technical, financial, environmental, social, and commercial delivery.
President of the Republic of Namibia, Hage Geingob, said, “The Harambee Prosperity Plan II noted that the Namibian Government would investigate the feasibility of incubating a synthetic fuels industry in Namibia as a key transforming agent of our economy. On Friday the 26th of May 2023, we earnestly embark on that journey as we kick start a process that has the potential to transform the lives of many in our country, the region, and indeed the world.”
Last June, Hyphen Hydrogen Energy announced its plans to commence constructing the $10 billion green hydrogen hub project in Namibia by 2025. The company said the first phase of the 125,000 tons of green hydrogen production will come online at the end of 2026.
The government of Namibia will provide the land for the project while developing and implementing the required legal, fiscal, and regulatory environment necessary for the establishment and sustainable operation of Namibia’s green hydrogen industry.
Additionally, the government has mobilized donor and concessional funding worth over €540 million (~$580 million) from Invest International and the European Investment Bank to develop the green hydrogen sector in Namibia.
The government has mobilized over €40 million (~$42.9 million) to date to de-risk its equity investment in the project, associated infrastructure, and future green hydrogen projects.
Chairman of the Namibian Green Hydrogen Council Obeth Mbui Kandjoze said, “This project is strategic in its potential to create employment in Namibia, reduce regional energy insecurity and help combat climate change by decarbonizing hard-to-abate sectors globally.”
The project further targets 30% local procurement of goods, services, and materials during the construction and operational phases.
Recent research by 40 African researchers from various institutions suggests that the immense benefits of a high renewable energy share in the African energy mix are indisputable, but the objective can be met only by adopting a country and context-specific strategy instead of treating the continent as a monolith.
In India, where Green Hydrogen development is in full swing, the Department of Science and Technology (DST) invited bids to establish Hydrogen Valley Innovation Clusters (HVICs) in the country. A hydrogen valley is a specific geographical region where hydrogen is utilized for multiple applications across different sectors, such as industry, energy, and mobility.