Namibia: AfDB backs Hyphen with $10M green hydrogen project

The Hyphen green ammonia project is poised to leverage the country’s world-class solar and wind energy resources

Namibia’s green hydrogen developer, Hyphen Hydrogen Energy, is set to receive a $10 million loan to support a green ammonia project valued at over $10 billion in Namibia.

The loan was approved by the African Development Bank (AfDB) Board of Directors for the Hyphen green ammonia project that could position Namibia as a global pioneer in the green hydrogen economy.

The Sustainable Energy Fund for Africa (SEFA) will provide the loan to support front-end engineering design studies for solar and wind generation, battery energy storage systems, electrolyser capacity and desalination infrastructure. 

The AfDB said this initiative will derisk the project and attract the necessary financing for its realisation.

Hyphen green ammonia project expected to produce 2 million tonnes of green ammonia for export to key markets

The Hyphen green ammonia project is poised to leverage the country’s world-class solar and wind energy resources. The first phase includes 3,75GW of renewable energy generation, battery storage, 1,5GW of electrolyser capacity and supporting infrastructure such as desalination facilities, pipelines, transmission lines and enhanced port facilities.

Once complete, the project is expected to produce 2 million tonnes of green ammonia per year for export to key markets, while also contributing to local economic development through a detailed socioeconomic development plan incorporated into the project’s 40-year concession agreement.

It is expected to generate 15,000 construction jobs and 3,000 permanent positions, 90% of these reserved for Namibian nationals and 20% specifically targeting youth in a country where youth unemployment exceeds 38%.

In addition, the project will supply 3 million liters of clean water through desalination daily to the water-scarce region of Lüderitz in Southern Namibia.

Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa, said this project is far more than energy infrastructure.

“This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy; we are defining it.”

In September this year, the German power utility RWE announced its withdrawal from Namibia’s $10 billion Hyphen green ammonia project, citing slow European demand. “Against this backdrop, we have reviewed the relevant projects at RWE. “This included the project with Hyphen in Namibia,” they said at the time.

Cover photo:  [angkhanpt]©123rf.com