Namibia – U.S.$9.4 Billion Local Green Hydrogen Project

The government has taken the first step to develop a US$9.4 billion vertically integrated green hydrogen project in the Tsau Khaeb national park by announcing its intention to appoint HYPHEN Hydrogen Energy as the preferred bidder.

The locally registered green hydrogen development company will run the country’s first large-scale project of its kind which will produce 300,000 tons of green hydrogen per year for regional and global markets when fully operational.

The first phase, which is expected to enter production in 2026, will see the creation of 2 gigawatts of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia, at an estimated capital cost of US$4.4 billion.

Further expansion phases in the late 2020s will expand combined renewable generation capacity to 5 gigawatts and 3 gigawatts of electrolyser capacity, increasing the combined total investment to US$9.4 billion.

Once fully developed, the project will provide a major boost to Namibia in terms of foreign direct investment and job creation.

The Tsau //Khaeb national park is among the top 5 locations in the world for low-cost hydrogen production, benefiting from a combination of co-located onshore wind and solar resources near the sea and land export routes to market.

“Namibia’s world-class natural resources, combined with a progressive, pro-investment and visionary government under the leadership of President Hage Geingob, has enabled the country to move with incredible speed to position itself at the leading edge of Africa’s ambitions to enter the green hydrogen production space,” said HYPHEN CEO, Marco Raffinetti.

HYPHEN Director Dr Tobias Bischof-Niemz said the consortium comprised shareholders and technical partners that are world leaders in their respective fields.

“This collective deep technical expertise across the entire green hydrogen value chain, combined with our financial strength and experience in developing, fundraising and implementing infrastructure projects in Africa, will be crucial in successfully delivering a project of this magnitude and complexity,” said Bischof-Niemz.

According to Nangula Uaandja, CEO of the Namibian Investment Promotion and Development Board, this is a milestone project that will enable the country to create on average 15,000 direct jobs over the four years of combined construction and 3,000 permanent direct jobs over the 40-year operational period, while contributing to other efforts to stimulate economic recovery.

Source: The Namibia Economist.

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