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The Republic of Namibia to develop Sub-Saharan Africa’s largest green H2 project

The Cabinet of the Government of the Republic of Namibia (GRN) has approved the entry into an agreement with Hyphen Hydrogen Energy (Hyphen) to govern the development, implementation and operation of sub-Saharan Africa’s largest, and its only fully vertically integrated, green H2 project.

The transformative impact of this project on Namibia and its economy is considerable. The total project capital investment of $10 B is roughly equivalent to the country’s annual GDP. At full scale development, anticipated before the end of the decade, the project will produce 2 MMtpy of green ammonia for regional and global markets.

The pioneering Feasibility and Implementation Agreement (FIA) planned to be signed on May 26, 2023, governs the process under which Namibia’s first green H2 project will be realized, as a first step in the implementation of GRN’s broader green H2 strategy. With limited existing international precedent to draw upon, GRN and the inter-ministerial Green Hydrogen Council assembled a negotiations team which was supported by international advisors, to develop the FIA. GRN and Hyphen believe that the FIA will set a new global benchmark, creating a template for the sustainable and equitable development of other green H2 projects.

His Excellency, Hage Geingob, President of the Republic of Namibia, 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.”

Her Excellency, Ursula Von Der Leyen, President of the European Commission, said, “Namibia has the potential to become one of the main renewable energy hubs on the African continent and even world-wide. Today’s agreement is a major step to produce green H2 in the country. I am proud that Global Gateway allows the EU and Namibia to invest in a shared future fighting climate change together, making Namibia energy-independent and creating jobs and prosperity.”

Obeth Mbui Kandjoze Chairman of the Namibian Green Hydrogen Council and Director General of the National Planning Commission said, “We are honored by the trust and confidence exhibited by Hyphen and the global community, for choosing to build such a catalytic project in Namibia. 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 Government of the Republic of Namibia is resolute in its unwavering commitment to realize potential of this transformative strategic bet!”

Marco Raffinetti, CEO of Hyphen Hydrogen Energy, said, “We are delighted to have concluded the FIA and look forward to delivering on the next phase of development of this ground-breaking project. On behalf of Hyphen, I would like to thank the government for its unwavering support and relentless commitment to unlocking Namibia’s green H2 potential. We are confident in our ability to work hand in hand with the people of Namibian to drive lasting change through economic development and job creation, whilst paving the way for a greener and brighter future.”

Dr. Gunar Hering, CEO of ENERTRAG, said, “ENERTRAG is proud and honored to be a partner of the Namibian government in creating a competitive green-H2 industry. Our aim and commitment are to grow Hyphen into a world-class Namibian green-H2 company.”