Namibia’s N$190 billion green hydrogen implementation agreement set to be signed

Namibia expects to sign the implementation agreement for its US$10 billion (approximately N$190 billion) green hydrogen project in the second quarter of 2023 and commence feasibility studies, a senior official speaking at the ongoing Africa Energy Indaba 2023 summit said.

Last month, the project promoter, Hyphen Hydrogen Energy, signed two memorandums of understanding (MOUs) with a major chemical company, name withheld, and South Korean hydrogen producer Approtium for a total annual offtake of 750,000 million tonnes of green ammonia.

At full development, the project will produce 300,000 metric tonnes of green hydrogen annually from 5-6 gigawatts (GW) of renewables and 3GW electrolyser capacity.

Frans Kalenga, Senior Manager, Sustainable Energies, NAMCOR, said six green hydrogen projects are underway in Namibia.

Providing an update on each one of them, he said: “The HDF (Hydrogene de France) Energy project is at an advanced stage and is looking to get an offtake power purchase agreement and a generation license.”

HDF is building an 85-megawatt (MW) solar power plant and a green hydrogen production unit in Swakopmund along the Namibian coast and has secured finance from the European Investment Bank at COP27.

In August 2022, it was reported that four German-funded pilots worth €30 million for hydrogen dual fuel locomotives, refuelling stations, and agriculture and port applications are underway in Namibia.

Kalenga said the port decarbonisation project is going through the pre-contractual agreement phase.

“We are yet to conclude the negotiations and start with the pre-contractual process for the hydrogen dual-fuel locomotive pilot,” he disclosed.

He continued: “The Cleanergy hydrogen refuelling station pilot is breaking ground this month, but the environmental impact assessment is still pending. The 1.5 GW green hydrogen project in Daures constituency is testing the viability of hydrogen being converted to ammonia to be used domestically.”

He said Namibia is swiftly moving towards setting up an implementation office to provide a conducive environment for investors. “We are looking forward to the hyphen project because that is a key to unlocking our other land parcels.”

(Zawya Projects)

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