Hyphen Hydrogen Energy (Hyphen) has joined forces with the Development Bank of Southern Africa (DBSA) to secure essential funding for the project’s advancement.
This partnership signifies a significant leap towards the realization of a landmark green hydrogen initiative that could potentially transform not only Namibia’s economy but also the broader Southern Africa region.
The funding, facilitated through the Project Preparation Facility from the DBSA, will be directed towards supporting various crucial aspects of the project, including engineering, environmental assessments, and socio-economic development initiatives. These preliminary steps are vital to steer the project towards the final investment decision stage.
The Hyphen project, with an estimated total capital investment of US$10 billion, is of monumental significance. To put it in perspective, this sum is roughly equivalent to Namibia’s annual GDP. Once fully operational, which is anticipated before the end of this decade, the project is expected to produce a staggering 2 million tonnes of green ammonia annually. This eco-friendly ammonia will serve regional and global markets, significantly contributing to the global green energy landscape. Moreover, the project envisions a substantial workforce with 15,000 employees during the construction phase and 3,000 employees once it’s running at full capacity.
Marco Raffinetti, the CEO of Hyphen Hydrogen Energy, emphasized the pivotal role of the Southern Africa region in the global green hydrogen race. He emphasized that leveraging the region’s abundant renewable resources and securing financing for the energy transition are critical components of this endeavor. The commitment from DBSA underscores the bank’s belief in the Hyphen project, marking a significant milestone in the project’s journey towards financial close.
Catherine Koffman, Group Executive Project Preparation at DBSA, highlighted the broader positive impact of the green hydrogen economy. This burgeoning industry not only presents new economic opportunities but also nurtures new skills, generates employment, and offers community development prospects for Namibia. Moreover, this project aligns with the long-term energy security priorities and contributes to a just energy transition that proactively addresses socio-economic development. DBSA recognizes the potential of Namibia’s dynamic green hydrogen industry, positioning it as a beacon of sustainable progress for the entire Southern African region.
The Hyphen project not only stands out as Namibia’s first Gigawatt-scale endeavor but also sets an example of how large-scale projects can serve as catalysts to drive the region towards a greener and more prosperous future.
As this partnership continues to evolve, the dream of establishing Namibia as a global player in the green hydrogen arena takes a significant step closer to becoming a reality.