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Green Hydrogen H2 News

Green Hydrogen: Namibia Signs MoU, Fuels African Progress

Arnes BiogradlijaBy Arnes Biogradlija22/06/20233 Mins Read
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In a bold move to dominate Africa’s green hydrogen sector, Hyphen Hydrogen Energy (Hyphen) has signed a Memorandum of Understanding (MoU) with several stakeholders to drive the delivery of sub-Saharan Africa’s largest green hydrogen project.

Partners include the Government of the Republic of Namibia (GRN), Namibian Ports Authority (NamPort), NamPower, the Port of Rotterdam (PoR), Gasunie, and Invest International. This marks a significant milestone for Namibia, putting the nation on the global map for green hydrogen production.

The GRN, on the same day, declared its intention to acquire a 24% equity interest in the Hyphen project at historical cost. This investment will be managed via SDG Namibia One, a bespoke blended financing infrastructure fund aiming to mobilize funds from both local and international investors for the development of Namibian green hydrogen projects and associated infrastructure.

The SDG Namibia One fund will be a partnership between Namibia’s Environment Investment Fund and two Dutch organizations, Climate Fund Managers and Invest International. As a show of support, Invest International has committed €40 million (~N$850 million) in grant funding, to be managed by the fund. Furthermore, a letter of intent was signed at COP27 between the European Investment Bank and the Government for a proposed €500 million fund, a portion of which may be channeled into SDG Namibia One.

Marco Raffinetti, CEO of Hyphen Hydrogen Energy, commended Namibia’s strides in the global green hydrogen industry, emphasizing the country’s eagerness to assume a leadership role. The establishment of the innovative finance fund, SDG Namibia One, and the government’s investment in the project were lauded as critical advancements toward ensuring project benefits reach all Namibians sustainably and equitably.

The MoU reinforces an existing collaboration between NamPort, PoR, and Hyphen in developing a new master plan for the Port of Lüderitz. The partners will combine their knowledge and expertise in designing the infrastructure required for realizing Namibia’s green hydrogen ambitions.

Further collaborations are under exploration between NamPower and Hyphen regarding the potential supply of excess electricity generated by the project to NamPower. This initiative could enhance Namibia’s energy security while contributing to decarbonizing its electricity system.

Simultaneously, the GRN announced the establishment of the Implementation Authority Office, tasked with facilitating and accelerating the development of Namibia’s synthetic fuels industry. Invest International and the EU will provide funding for this office.

These advancements come as Namibia hosted a joint working visit by Mette Frederiksen, Prime Minister of Denmark, and Mark Rutte, Prime Minister of the Netherlands, on Monday, 19 June. The leaders engaged in discussions about their countries’ potential collaborations with Namibia, particularly considering Europe’s role as a significant demand center for green hydrogen.

Namibia’s bold strides in the green hydrogen sector not only exemplify the nation’s commitment to a sustainable future but also set the pace for other African countries in the global green hydrogen race.

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