Namibia has achieved a significant milestone in its green hydrogen economy with the signing of a deal with HYPHEN Hydrogen Energy for the next phase of a $10 billion project in the Tsau//Khaeb National Park within the Namib Desert.
This project aims to export green hydrogen to Europe, further establishing Namibia as a global hydrogen hub.
The agreement comes just ahead of the African Energy Chamber’s Invest in African Energy Forum in Paris, which brings together key players from the African and European energy sectors. Building on previous discussions surrounding Africa-Europe collaboration, the forum aims to facilitate new deals focused on maximizing Africa’s abundant energy resources.
The Tsau//Khaeb green hydrogen project in Namibia serves as a significant initiative and a demonstration of the potential for large-scale green hydrogen projects in Africa. With Africa being considered the final frontier for energy, the continent’s renewable energy resources present crucial opportunities for addressing energy access concerns and promoting industrialization through the use of green hydrogen fuels. Several African countries, including South Africa, Mauritania, and Egypt, are capitalizing on the benefits of green hydrogen. What sets Namibia apart is its emphasis on global collaboration, working closely with German partners to drive the green hydrogen project and unlock energy access and industrialization opportunities.
Monetizing renewable energy through green hydrogen not only provides regional energy access but also contributes to broader socioeconomic growth in Africa. The revenue generated from exports can have a positive impact on various sectors of the African economy. African green hydrogen projects align with the continent’s priorities of achieving energy security and transitioning to sustainable energy sources. The HYPHEN-led project in Namibia plans to construct a plant in two phases, eventually producing up to two million tons of green ammonia annually. The energy will be distributed for regional and global use, with production targeted for 2030. Namibian President Hage Geingob believes this project has the potential to transform lives on a local, regional, and global scale.
The feasibility and implementation agreement, set to be signed on Friday, marks a significant step towards the sustainable and equitable development of green hydrogen projects in Africa. It also highlights the importance of bilateral cooperation in energy project development on the continent. Under this agreement, the Namibian Government will establish the necessary regulatory, legal, and fiscal framework, while HYPHEN will handle the technical, environmental, financial, social, and commercial aspects. This framework exemplifies the role of public-private partnerships and can serve as a model for other African markets.
The AEC’s Executive Chairman, NJ Ayuk, views Namibia’s progress as a testament to its commitment to becoming a global energy powerhouse. By leveraging renewable energy resources in collaboration with global partners, Namibia is paving the way for industrialization, energy access, and revenue generation. Partnerships like the one between Namibia and Germany provide a blueprint for other African markets. The Invest in African Energy Forum in Paris, scheduled for June 1, 2023, presents an opportunity for European investors and project developers to explore partnership opportunities with African countries. Ayuk emphasizes the importance of European investment in developing African economies and expanding energy supplies on the global market, particularly as Europe faces its own energy crisis.