(Windhoek / Namibia) – The government of Namibia has selected Hyphen Hydrogen Energy as the “preferred bidder” to develop the country’s first large-scale green hydrogen project. The location mentioned is the Tsau/Khaeb National Park. 300.000 tons of green hydrogen are to be produced there per year for regional and global markets, either as pure hydrogen or in the form of green ammonia. Investments are estimated at 9,4 billion dollars (8,1 billion euros).

The announcement follows the result of a tender. After completing the required legal procedures and contractual agreement, Hyphen will be granted the right to build and operate the production facilities for a period of 40 years upon completion of the feasibility study and government approval.

Renewable energy systems with five gigawatts of output

The first phase is scheduled to go into operation in 2026. By then, renewable energy power plants with an output of two gigawatts will be installed. The costs are said to be $4,4 billion. In the further expansion phases in the late 2020s, the systems for generating renewable energy will be expanded to an installed capacity of five gigawatts and the capacity of the electrolyzers will be increased to three gigawatts, according to Hyphen managing director Marco Raffinetti.

The total investment would correspond to the size of Namibia's current gross domestic product. During the four-year construction period of both phases, almost 15.000 direct jobs will be created, and a further 3.000 jobs will be created permanently during the operational phase. More than 90 percent of all jobs created are to be filled by Namibians.

“Tsau/Khaeb National Park is among the top five locations in the world for low-cost hydrogen production, benefiting from a combination of onshore wind and offshore solar resources and export routes to market,” Raffinetti said. According to Namibia's Ministry of Environment, Forestry and Tourism, Tsau/Khaeb National Park (Tsau means "soft" and Khaeb "sand") was previously a "restricted area". Most of it was closed to the public for almost a century, starting in 1908, after diamonds were found near the port city of Lüderitz. The measure was intended to protect mineral resources, which contributed to the development of an ecosystem that is unique in the world.

The consortium

According to Hyphen director Tobias Bischof-Niemz, the consortium consists of “shareholders and technical partners” with in-depth expertise across the entire green hydrogen value chain. Hyphen Hydrogen Energy (Pty) Ltd is a joint venture between Nicholas Holdings Limited and Enertrag South Africa (Pty) Ltd and was established specifically for the development of green hydrogen projects in Namibia. Enertrag South Africa is a subsidiary of the German electricity producer Enertrag AG. According to the information, the company “put into operation the world’s first plant for the production of green hydrogen from wind power” in 2011. Nicholas Holdings Limited is a strategic investor that develops and operates infrastructure projects, primarily through its subsidiary Principle Capital in Africa and Europe.

The Namibia Investment Promotion and Development Board (NIPDB), a non-profit organization that is an autonomous unit in the Namibian presidential office, is also on board. The tasks include, among other things, promoting and facilitating investments by foreign and Namibian investors as well as new ventures that contribute to economic development and job creation.

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https://hyphenafrica.com/news/namibia-announces-hyphen-as-preferred-bidder-to-implement-us9-4bn-green-hydrogen-project/

Photo above
Aerial view of the Tsaus Mountains in the restricted area of ​​Namibia © Olga Ernst & Hp.Baumeler – Own work, CC BY-SA 4.0

Photo middle
Warning sign from 1947, pictured in “South West Africa Yearbook” © South West Africa Government

Photo below
From left to right: Marco Raffinetti, CEO of Hyphen. Brian Myerson, Director of Hyphen. Center: Hage Geingob, President of Namibia. Members of the NIPDB and ministers can be seen behind and around the President. © Hyphae

Editor's note: We completed the caption of the photo below on November 13, 2021.