(Windhoek / Namibia) – The government of Namibia has given its “go” to developing the largest green hydrogen project in sub-Saharan Africa. The investments are estimated at around ten billion dollars (9,91 billion euros) - according to World Bank statistics, this corresponds approximately to the state's annual gross domestic product (GDP) (2021: 12,3 billion dollars).
7 gigawatts of renewable energy power plants
At full development, the aim is to produce two million tons of green ammonia annually for regional and global markets by the end of the decade. This requires renewable energy power plants with an output of around seven gigawatts. The proceeds are used to produce hydrogen in an electrolyzer with an output of three gigawatts.
Namibia in southwest Africa. © Wikipedia
Hyphen Hydrogen Energy Pty Ltd is responsible for the construction and operation of the systems. The company, a joint venture between the Brandenburg-based Enertrag SE and the investor Nicholas Holding Ltd., had one in November last year Call for tender can decide for themselves and has been busy with the preparations for some time. In order to implement the project, Hyphen and the government of Namibia have now reached a feasibility and implementation agreement (FIA). To develop this, the Namibian Interministerial Council for Green Hydrogen put together a negotiating team that was supported by international consultants, as there were reportedly only a few international examples of such large-scale projects that could have been drawn upon.
Five phases to operation
As part of the FIA, Hyphen is responsible for the technical, financial, environmental, social and commercial implementation of the project. The government will provide the land on which the project will be built and will also develop the necessary legal, tax and regulatory environment for the establishment and operation of the Namibian green hydrogen industry. The FIA is divided into five phases:
- Development: takes up to six months so that all FIA conditions can be met. The government can exercise an option to participate in the project as a co-investor of up to 24 percent.
- Feasibility: a two-year period during which Hyphen will be engaged to assess the feasibility of the project.
- Validation: The Namibian government has 120 days from Hyphen's submission of the feasibility report to review, validate and, if necessary, modify the final project design.
- Financing and construction: Hyphen will raise the financing and build the facilities.
- Business: Hyphen is responsible for operation and maintenance as well as any possible shutdown at the end of the term.
But the focus is not just on technology. The central points of the project are also the commitment to the socio-economic development of Namibia through the creation of jobs and local contract awarding.
It is estimated that up to 15.000 new jobs will be created during the construction phase and 3.000 permanent jobs will be created during operation, with 90 percent to be filled by Namibians and around a fifth of these by young people. The project also aims to source 30 percent of goods, services and materials locally during the construction and operation phases.
Photos
By the end of the decade, ten billion dollars will be invested in building a Namibian hydrogen economy. © Hyphen Hydrogen Energy Ltd.
