APA-Windhoek (Namibia) Namibia has signed a feasibility and implementation agreement with German-run Hyphen Hydrogen Energy in a development expected to unlock the southern African country’s massive green hydrogen potential to supply international, regional and local markets.
The pioneering US$10 billion feasibility and implementation agreement would see Namibia developing sub-Saharan Africa’s largest green hydrogen project to be located in the Namib Desert’s Tsau//Khaeb National Park.
President Hage Geingob, who witnessed the signing ceremony at State House in Windhoek, said the agreement “signifies an exciting chapter for Namibia’s growth trajectory.”
“Let’s allow this project (to have) a chance. Let’s not regret the undue interferences,” Geingob said, citing another public-private sector initiative that collapsed following interference from community groups.
Under the agreement, Hyphen would be responsible for the technical, financial, environmental, social and commercial delivery of the project, while the Namibian government would provide the land on which the project would be established as well as develop the required legal, fiscal and regulatory environment necessary for the sustainable operation of the green hydrogen industry.
The project is expected to pump a substantial amount of revenue into government coffers through the payment of land rentals and royalties on all project income and taxes.
At full-scale development, which is anticipated before 2030, the project is expected to produce two million tonnes of green ammonia annually for regional and global markets.
Hyphen has over the past year signed a number of off-take agreements with potential European customers, targeting up to 750 000 tonnes of green ammonia, consolidating Namibia’s position as a global hydrogen hub.
The company has also secured an agreement with Koole Terminals to use its infrastructure to import green ammonia for the European market.
The Tsau//Khaeb project serves as a demonstration of the potential for large-scale green hydrogen projects in Africa and comes ahead of the Invest in African Energy Forum being organised by the African Energy Chamber in Paris in June.
Long-considered the final frontier for energy, Africa’s significant renewable energy resources offer critical opportunities for the continent to address energy access concerns through development of widespread solar and wind energy systems, as well as industrialisation through the utilisation of green hydrogen fuels.
Green hydrogen projects have been cropping up across the continent, with markets such as South Africa, Mauritania and Egypt eager to capitalize on the benefits the resource provides.
JN/APA