Namibia to Develop First Ever Large-Scale Green Hydrogen Project

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The Namibian government has announced that HYPHEN Hydrogen Energy (HYPHEN) has been selected as the preferred bidder for the country’s first-ever large-scale green hydrogen project. Following a competitive tender process and the signing of a contractual agreement, the $9.4 billion project will be significant in the country’s quest to establish a green hydrogen economy in southern Africa.

Located in the Tsau//Khaeb National Park in Namibia, the project comprises a vertically integrated green hydrogen project with an anticipated production capacity of 300,000 tpy. According to the contract, HYPHEN holds the right to construct and operate the project over a 40-year timeline.

“The first phase, which is expected to enter production in 2026, will see the creation of 2GW of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia, at an estimated capital cost of US$4.4 billion. Further expansion phases in the late 2020s will expand combined renewable generation capacity to 5 GW and 3 GW of electrolyzer capacity, increasing the combined total investment to US$9.4 billion”, stated HYPHEN Chief Executive Officer, Marco Raffinetti.

The green hydrogen project will be critical for Namibia as the country pursues an energy transition while at the same time ensuring energy sector developments translate into job creation and socio-economic growth. Throughout the two phases of project construction, the project is expected to create over 15,000 direct jobs while an additional 3,000 jobs will be created during operational phases.

“We are humbled by the enormity of the responsibility that comes with this award, but are confident that we can not only live up to, but exceed the expectations placed on us. We look forward to working with the Government of Namibia and all other stakeholders in delivering Southern Africa’s first GW-scale green hydrogen project,” continued Raffinetti.

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Charné Hollands

Charné Hollands

Charné Hollands is the Deputy Editor at Energy Capital & Power. She holds a Higher Certificate in Professional Photography and Masters in Media Studies from the University of Cape Town. Charné writes content for ECP's website and events as well as co-authored African Energy Chamber: Road to Recovery.

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