Alweendo encourages tech innovation in Namibia’s energy sectors

Mines and Energy Minister Tom Alweendo has said that Namibia needs to embrace technology and innovation across all stages of development in both oil and gas and green hydrogen industry value chains.

Alweendo was addressing delegates at the 2024 Erongo Business & Tourism Expo when he further stated that digital technologies like automation, artificial intelligence, and data analytics can help optimise production, reduce costs, and minimise environmental impacts.

“We must therefore aim to be at the forefront of technological advancements, ensuring that our industries are not only competitive but are also built to last,” Alweendo said.

He further said that the government is working with both international and local investors, local businesses, and research institutions to build a robust ecosystem that fosters innovation and sustainable practices.

“Our approach to developing this sector is holistic, while emphasising technological innovation. Technological innovation is key where not only are we adopting existing technologies but also fostering homegrown innovations that make green hydrogen production more efficient, cost-effective, and locally driven,” he said.

Namibia’s recent oil and gas discoveries have drawn the attention of global markets, positioning the country as a rising energy player. The potential revenues from these resources could fuel infrastructure development, healthcare, education, and much-needed social programs. These new industries have opened up a credible pathway for Namibia to meaningfully address historical structural challenges of high unemployment, high poverty, and high income inequalities.

“However, there is an important caveat to this happening—we must approach these opportunities with foresight and care. This is a once-in-a-lifetime opportunity that we cannot afford to squander; something that we must make sure propels us to prosperity and makes us proud Namibians. We thus need to approach this opportunity judiciously, always emphasising the ethos of, among others, meritocracy, pragmatism, integrity, honesty, and accountability.

“As we tap into these resources, let us commit to responsible extraction practices that prioritise environmental preservation. We have seen the lessons from countries around the world where poorly regulated oil and gas activities led to ecological degradation and harm to communities. We cannot and must not repeat such mistakes. Our approach must be centred on smart regulation, transparency, inclusiveness and environmental stewardship,” said Alweendo adding that there is need to ensure that the oil and gas sector is not just about short-term profits, but must also serves as a bridge to a diversified economy.

“Revenues should be reinvested in innovation, social services, and industries that will sustain Namibia long after the oil has run out. The government is implementing strict regulations to ensure sustainable exploration and production. Environmental responsibility is at the forefront of our energy strategy, and we are working to ensure that all projects align with global best practices. For local businesses, particularly small and medium enterprises (SMEs), this sector offers numerous opportunities.

“From supply chain local sourcing services to logistics and environmental consultancy, there are various ways SMEs can contribute and benefit. Now is the time to innovate, upskill, and position yourselves to take advantage of these opportunities. The Erongo Region, in particular, is well positioned to provide strategic goods and services to the oil and gas industry, including vessel repair facilities, lodging, base re-supply capabilities, and fuel bunkering, amongst many others,” the Minister said.

He went to explain that it is the government’s number one priority to ensure that they introduce inclusive policy tools that promote local participation and employment. This will be achieved by requiring a certain percentage of goods and services to be sourced from domestic suppliers, especially those owned by historically disadvantaged Namibians, and a certain percentage of jobs to be filled by local people, thus maximising the local content in these strategic bet industries. The policy also motivates international oil companies to share knowledge and expertise with local firms and encourages investment in local infrastructure and skills development.

“While oil and gas present new economic prospects, our green hydrogen initiative is a cornerstone of our leadership in the global energy transition. Green hydrogen, produced using renewable energy, is crucial in reducing carbon emissions and decarbonising industries such as mining, transportation, and manufacturing.”

Alweendo also went to state that the government’s ambition is to produce green hydrogen on a scale that meets both domestic and international demand and use the molecules as cornerstones of establishing new industries in Namibia. Globally, there is a concerted effort to reduce carbon emissions across all industries. Namibia is poised to reap increasing benefits from this excess global demand.

“In some industries, one can electrify them with clean electricity, while in others, commonly referred to as hard-to-abate sectors, one will need green hydrogen and its derivatives. So, if we can competitively produce this clean fuel locally, it presents Namibia and the Erongo Region with a plethora of new industries, which include green iron production, green shipping fuel bunkering, and even green fertiliser manufacturing. This effort not only creates a cleaner energy future but also drives sustainable economic growth and productive diversification opportunities. The potential for job creation, local enterprise participation, and export revenue is immense,” he said.

Conclusively, Alweendo called on stakeholders to work together with the government towards building a thriving energy sector.

“As I conclude, I am convinced that Namibia’s future is bright, and we stand at a critical juncture in our national development and social transformation. The potential for growth in our oil, gas, and green hydrogen sectors is unprecedented. However, with this opportunity comes the responsibility to ensure that the development is sustainable, inclusive, and beneficial for all. As we look to the future, I call on all stakeholders—businesses, investors, innovators, and community leaders—to embrace this challenge.

“Let us work together to build an energy sector that is not only economically robust but also environmentally responsible. Let us ensure that Namibia becomes a leader in sustainable growth, not just in Africa but globally. Erongo Region is at the epicentre of this transformation journey, being a central pillar of our logistics hub agenda,” Alweendo said.

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