Namibia is expected to receive approximately N$682,3 million (around US$45m) in funding from the German government to support research into green hydrogen ventures.
The financing, which is around 40 million euros, was revealed on Tuesday in conjunction with the publication of the green hydrogen request for proposals (RFP) and the presentation of the second Harambee Prosperity Plan (HPPII) first quarter report.
Obeth Kandjoze, Namibia’s national planning commissioner, stated that in addition to investigating the viability of Namibia utilizing green hydrogen, the funds will be used to establish the Green Hydrogen Council of Namibia.
Kandjoze noted that Namibia is cooperating with countries ready to assist it in advancing its objectives for economic development and improvement.
“Preliminary estimates of this potential [project] estimate Namibia’s annual production of green ammonia in excess of 2,5 million tonnes, and thus will attract more than US$6 billion in foreign direct investment, while generating annual revenue in excess of US$800 million. Our presence here today is about testing those estimates,” Kandjoze noted.
“We are not alone in this endeavour. Germany is heavily investing in the green hydrogen industry in Namibia. Our two governments are about to conclude an agreement that will see them invest up to 40 million euros, which, given today’s exchange rate, translates to just over N$680 million,” he said.
The University of Namibia will lead the research necessary to establish a robust green hydrogen sector, with assistance from other Namibian and German stakeholders.
At the same event, Economic Adviser to the Presidency James Mnyupe stated that the invitation for proposals invites developers from all over the world to congregate around Namibia’s Karas region in order to design and envision a bright future for the region’s residents and the country as a whole.
“This RFP is the culmination of a Herculean effort by government officials from various offices, ministries and agencies,” he said.
“The funding will support the development of a green hydrogen industry, as highlighted in the economic advancement pillar. Preliminary uses of the funding include green hydrogen bursaries, feasibility studies and development of pilot plants,” the report stated.