Namibia plans ‘sub-Saharan Africa’s largest’ green hydrogen project

The project – which is claimed to be sub-Saharan Africa’s largest – will represent the first step in implementing Namibia’s strategy to develop a green hydrogen industry across the country.

By 2030, the project should be producing 2Mt of green ammonia annually for regional and global markets from around 7GW of renewable generation capacity and 3GW of electrolyser capacity. 

Investment

The total investment in the facility will be $10 billion – roughly equivalent to the country’s annual GDP. The project is intended to decarbonise the entire Namibian electrical grid, act as a catalyst for energy independence and make the country a net exporter of low-carbon energy.

Hyphen Hydrogen Energy is a Namibia-registered green hydrogen development company and a joint venture between UK-based Nicholas Holdings Limited and Germany’s Enertrag.

Under the FIA, the preliminary phase will last six months and allow the Namibian government to exercise its option to acquire up to a 24% interest in the project. 

After a two-year feasibility phase led by Hyphen, there will be a 120-day government validation phase. Hyphen will raise finance for the project, build it and be responsible for operation and maintenance – and for its eventual decommissioning.

The Environmental Investment Fund (EIF) of Namibia has invited technical and financial proposals for feasibility studies for three ‘hydrogen valleys’ as identified in Namibia’s green hydrogen strategy.

The sites are in the Karas, Erongo, Khomas, Otjozondjupa and Kunene regions. 

Karas in the north and Kunene in the south are said to be “blessed with a world-class blend of wind and solar renewable power resources” while the other areas, located in the centre of the country, have solar potential and road, rail and port infrastructure.

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