With a war chest of N$1.33 billion (€65 million) already under management and deployed into two flagship projects, Namibia is aggressively positioning itself to become the African epicentre of the global green hydrogen economy, a move that could spur a new wave of industrialisation across the continent by 2030.
The revelation comes from Mercia Geises, CEO of Namibia Hydrogen Fund Managers, who in an exclusive interview with Energy Connects ahead of the pivotal Global African Hydrogen Summit 2025, outlined both the immense potential and the significant hurdles facing the nascent sector. Geises confirmed that the fund has committed its substantial capital to two cornerstone initiatives: the massive Hyphen Hydrogen Energy project and the innovative HyIron direct reduction iron endeavour.
“This isn’t just about exporting a clean fuel; it’s about using this opportunity to leapfrog conventional technology and really establish new sectors, new skill sets, and new derivatives from green hydrogen for Africa,” Geises stated, framing green hydrogen as a key to unlocking long-awaited economic transformation.
The financial commitment, equivalent to over one billion Namibian dollars, signifies a major vote of confidence in a technology that leverages the country’s unparalleled solar and wind resources. However, Geises was candid about the challenges that must be overcome to convert this potential into profit and power.
The Cost Competitiveness Hurdle
A primary barrier, according to Geises, is the current global cost of technology, specifically electrolysers. These machines use renewable electricity to split water into hydrogen and oxygen, and their efficiency and price point are critical.
“For the industry to move forward and be competitive with existing fossil fuel and grey hydrogen producers, the cost of electrolysers must come down significantly,” Geises explained. This challenge is a global one, but for developing nations, it is particularly acute, requiring scale and investment to overcome.
The second major challenge she identified is the need for “industrial scale policy-based offtake.” This refers to the necessity for governments and major industries worldwide to create firm, long-term policies that guarantee they will purchase green hydrogen at a set price. This kind of demand security is crucial for de-risking projects and attracting the vast capital required for construction.
From Pilot to Production: The Scale Imperative
The conversation naturally turned to scale. Geises argued that Africa’s advantage is not merely in its renewable endowments—which are exceptional in Namibia, South Africa, Egypt, Morocco, and Mauritania—but in the integrated opportunity it presents.
The vision extends beyond production plants. It encompasses building entirely new infrastructure ecosystems: expanded and integrated ports, new trading corridors, and enhanced grid systems. This builds regional energy self-sufficiency and creates a platform for intra-African trade, with green hydrogen and its derivatives, like green ammonia, powering everything from shipping to agriculture.
A key domestic opportunity lies in mineral beneficiation. “The new policies around mineral beneficiation… especially when it comes to critical rare earth minerals, is a significant opportunity which can be powered by green hydrogen,” Geises said. Instead of exporting raw materials, African nations could use cheap, clean energy to process them on-site, capturing far more value and creating advanced manufacturing jobs.
Drivers for a Green Hydrogen Future
To spur this nascent industry forward, Geises pointed to two fundamental drivers. The first is an unwavering global commitment to the energy transition and the goals of the Paris Agreement. The second is the strategic attraction of investment capital.
“We have an opportunity to access climate finance from various multilateral development agencies such as the AFDB, the EU, and the World Bank. They’re all playing their role in supporting the sector, particularly in Africa,” she noted. This blend of public and private finance is seen as essential for bridging the initial cost gap with conventional fuels.
Success at the Summit: Operational Pilots and New Capital
Looking ahead to the Global African Hydrogen Summit in September, Geises defined success in tangible terms. For Namibia, a key indicator will be demonstrating tangible progress to returning investors.
“At least three of the pilots will be fully operational by the time that the summit is held, and they are a significant step in de-risking the sector for Namibia,” she revealed. These operational projects move the conversation from theory to reality, proving the technology under Namibian conditions.
The ultimate goal for the summit is to leverage this proven progress to secure more commitments. “One of the key success factors… is that we will have a lot more multilateral finance institutions come and commit the capital so that we can now take the projects from a pilot and a development phase into commercialisation,” Geises said.
The objective is clear: to develop and produce green hydrogen at scale by 2030 without losing the hard-won momentum that has already been established with over N$1.33 billion in committed capital. The world will be watching to see if Namibia can successfully convert its boundless sunshine and wind into a green industrial revolution.