Namibia's 'Hyphen' Green Hydrogen project approved for 2 million tonnes per year
Namibia, one of the world’s top resource-rich locations, is set to harness its own solar and wind energy to produce green hydrogen, an position itself as a renewable energy hub in Africa. With potential to help decarbonise the world and to achieve Net Zero.
The Cabinet of the Government of the Republic of Namibia (GRN) will sign a Feasibility and Implementation Agreement (FIA) with Hyphen Hydrogen Energy for its green hydrogen project. The pioneering FIA set to be signed today (May 26th) governing the process for the development, implementation and operation of Namibia’s ‘first’ green hydrogen project; as the first step in the GRN’s broader green hydrogen strategy. The FIA was established by the GRN and the inter-ministerial Green Hydrogen Council which assembled a negotiations team supported by international advisors. GRN and Hyphen believe the FIA will set a new global benchmark, creating a template for the sustainable development of other green hydrogen projects.
The $10 billion project is expected to produce 2 million tonnes of green ammonia annually for regional and global markets; anticipation to be ready before year 2030. With 7 gigawatts of renewable generation capacity and 3 gigawatts of electrolyser capacity, the hydrogen project could help cut around 6 million tonnes of carbon dioxide (CO2) emissions per year. Namibia’s annual 2021 emissions totalled 4.01 million tonnes.
The hydrogen project will generate income to the Namibian fund through the payment of land rentals, royalties on all project revenues and taxes. GRN also has an opportunity to be a co-investor in the project with the right to take up to a 24% equity interest at cost. Through its partnership with the EU and Global Gateway Initiative, Namibia has mobilised donor and concessional funding from Invest International and the European Investment Bank of more than $579 million to finance the development of the green hydrogen industry and to fund its participation in the project, with additional support to be announced post the execution of the FIA. The FIA is split into five broad sequential phases; the preliminary phase; feasibility phase; validation phase; financing and construction phase; and the operational phase.
Ursula Von Der Leyen, President of the European Commission stated “Namibia has the potential to become one of the main renewable energy hubs on the African continent and even worldwide. Today’s agreement is a major step for the production of green hydrogen in the country.”
As Hyphen Hydrogen confidently works hand in hand with the people of Namibia to drive lasting change through economic development, showcasing the way for a greener and brighter future whilst providing scope for job creation, this Hydrogen project will pave the way for other countries to follow suit, in the implementation of Hydrogen infrastructure.
