(Sharm El-Sheikh / Egypt) – EU Commission President Ursula von der Leyen and Namibia's President Hage Geingob signed a strategic partnership at the COP27 climate conference in Egypt. This aims to “ensure the development of a secure and sustainable supply of raw materials, refined materials and renewable hydrogen”.

Raw materials and green hydrogen

The agreement is based on six cornerstones, including the integration of raw materials and renewable hydrogen value chains, including the promotion and facilitation of trade and investment. The agreement should also help develop capacities in terms of training, skills and research.

Among other things, the EU wants to support the development of renewable energy sources and the decarbonization of the energy sector in Namibia, with a particular focus on renewable hydrogen, and to create a “well-functioning market for it. In addition, “open, fair and competitive markets for renewable hydrogen, raw materials and processed materials” should be established.

Energy security through hydrogen imports

Hydrogen in Europe is currently largely produced from natural gas. The EU intends to “diversify its gas imports and increase its energy security through the development of renewable energy and the production of renewable hydrogen,” says the agreement. Due to limited domestic production capacity, the EU plans to import ten million tonnes of renewable hydrogen and hydrogen derivatives by 2030. By 2050, the use of hydrogen is expected to increase from two percent now to 13 percent.

Namibia is distinguishing itself as a hub for renewable energy in Africa in the context of energy security, the paper said. Year-round solar radiation, proximity to the sea and wind power provided a good foundation for the country as an exporter of a diverse portfolio of clean energy.

In parallel, the European Investment Bank (EIB) and Namibia signed a joint declaration to deepen their cooperation in promoting renewable energy, including renewable hydrogen. A targeted loan of 500 million euros should enable the financing of long-term sustainable projects and investments.

Namibia attracts hydrogen projects

Namibia has been attracting hydrogen projects of significant size for some time. For example, as reported, The French power generator and fuel cell manufacturer Hydrogen de France SA (HDF Energy) will invest around 2024 million euros by 180 and a hydrogen power plant in the port city Swakopmund put into operation.

On the sidelines of COP27, HDF Energy announced that it had taken another step forward in its development through an agreement with the European Investment Bank, which “brings us closer to financial closure in 2023 and the start of construction of the first large-scale green hydrogen project in Africa,” it said Nicolas Lecomte, HDF director for southern and eastern Africa, without giving details.

The two Belgian companies Ohlthaver & List and CMB Tech Ltd. have announced the construction of a demonstration plant for the production of green hydrogen to operate a filling station in Walvis Bay, half an hour's drive south of Swakopmund, for the end of 2023. And Hyphen Hydrogen Energy Pty Ltd. is even planning to invest almost ten billion euros in electrolyzers with an output of three gigawatts and an annual capacity of around 350.000 tons. The electricity for this will one day be produced by renewable energy power plants with an installed capacity of five to six gigawatts.

In August 2021, the Federal Ministry of Education and Research concluded a hydrogen partnership between Germany and Namibia and promised funding totaling 40 million euros. In July 2022, the Federal Ministry of Economics appointed a special representative for German-Namibia climate and energy cooperation. Its task is to build a hydrogen economy as part of a cooperation agreement with the Namibian government.

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EU Commission President Ursula von der Leyen and Namibia's President Hage Geingob © EU Commission / Dati Bendo

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HDF wants to generate electricity around the clock with a hydrogen power plant in Namibia © HDF Energy