The African Development Bank (AfDB) has approved a $10 million loan to Hyphen Hydrogen Energy to initiate a $10 billion green ammonia project in Namibia, a move seen as crucial to the country’s ambition to become a global leader in green hydrogen production.
The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), is expected to finance front-end engineering design studies for solar and wind generation, battery storage, electrolyser capacity and desalination infrastructure.
AfDB country manager Moono Mupotola said the funding would help de-risk the project and unlock billions in private investment.
“This is about far more than energy infrastructure. This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet,” Mupotola said.
“Namibia is showing the world that Africa is not just participating in the green economy – we are defining it.”
Namibia is widely recognized for its exceptional solar and wind resources, making it one of the most promising locations for green hydrogen development.
The Hyphen project, located in the southern town of Lüderitz, is expected to deploy 7.5 GW of renewable energy – more than 10 times the country’s current installed capacity – and produce two million tonnes of green ammonia annually for export.
The first phase would include 3.75 GW of renewable energy, 1.5 GW of electrolyser capacity, battery storage, desalination facilities, pipelines, transmission lines and upgraded port infrastructure.
The project is also expected to supply three million litres of clean water daily to the arid Lüderitz region and avert five million tonnes of carbon dioxide emissions annually – equivalent to removing over one million cars from the road.
Hyphen chief executive Marco Raffinetti called the AfDB loan “a strong vote of confidence” in both the project and Namibia’s broader hydrogen ambitions.
“This facility, which will be utilised to partially fund the technical design phase of the project on our journey to the final investment decision,” he said.
The initiative is expected to generate 15,000 construction jobs and 3,000 permanent positions, with 90 percent reserved for Namibians and 20 percent targeting youth in a country where youth unemployment exceeds 38 percent.
The Hyphen development is a flagship of Namibia’s Southern Corridor Development Initiative and is expected to serve as a model for other African nations with abundant renewable energy potential.
JN/APA