Poised to become Africa’s first 100% net-zero green community, the Daures Green Hydrogen Village project will comprise solar, wind, hydrogen and ammonia production systems and transportation networks. Set to be developed through 2032, the project will initially provide a pilot proof of concept while eventually targeting large-scale green hydrogen production, exploitation and export to regional and global markets. Energy Capital & Power spoke to Daures Green Hydrogen CEO Jerome Namaseb about the far-reaching impact of the project on local communities and Namibia’s role in the regional energy matrix.
What is the development timeline for the Daures Green Hydrogen Village?
The German and Namibian governments signed the Joint Communique of Intent (JCoI) agreement that aims to provide €40 million ($43.8 million) in grant funding to Namibia for various activities, of which we are pleased to announce that we have received funding of €12.2 million Euros ($13.3 million) for the implementation of this pilot proof of concept project from the German Research and Education Ministry (BMBF) and SASSCAL. The project is being carried out in collaboration with our project partners, which include the University of Namibia and University of Stuttgart. Currently, we are in the construction of Phase 1 of the project…We do have aspirations of industrial level production and our projections indicate that at full capacity, in subsequent phases, this site could generate over 2 GW of power and produce around 750,000 tons of green ammonia per year.
What impact will the project have on nearby rural areas?
Community is the core of this project. The project partners and ownership in the Daures Green Hydrogen Village include local community groups. 10% of the shareholding belongs to the community represented by the Daure Daman Traditional Authority and Tsiseb Conservancy. This arrangement ensures local grass roots ownership and allows the community to benefit from their own resources. This arrangement also ensures that 50% of the workforce must be sourced from the local community and 30% of the construction contract value must be awarded to local small- and medium-sized enterprises within the community. This number will continue to grow over time.
How will the development of green hydrogen in Namibia shape the future of energy in southern Africa?
Namibia is currently a net importer of energy, which makes us dependent on other countries in the region. By establishing projects such as these and producing energy, Namibia can change the narrative and eventually reach energy independence and potentially become a net exporter of energy in the region. Being at the forefront of this industry provides many significant advantages, including the first mover advantage and establishing Namibia as a potential market leader in the green hydrogen space.
Who are your primary development partners in Namibia?
The lead firm behind this project is Enersense Energy Namibia, a local company that is 100% Namibian-owned. We have research partnerships with the University of Stuttgart and University of Namibia. Internationally, we are working with companies like Solargis for solar expertise and GeoNet for wind studies. Fichtner is our consultant providing advice on the hydrogen and ammonia side, and we also have local representation with companies from Namibia and southern Africa. Windhoek Consulting Engineers (WCE) in Namibia and Vegtech Netafim are assisting us with agricultural solutions to name a few.
The potential of hydrogen has been discussed for many years. Why is it gaining ground now?
No one can ignore it anymore. Climate change is real and we are all experiencing its effects on a daily basis. The Paris Agreement provided a firm commitment from world leaders to work towards achieving net-zero emissions by 2050. This commitment aligns with our goals at Daures Green Hydrogen Village and is also part of the corporate consciousness. The increasing importance of policies and the advancements in ESG over the past few years have played a significant role, as well. Technological improvements have made these goals more tangible. If we look at the progress we’ve seen in solar over the last 20 years – and project that trend into the next 5 or 10 years – it’s possible that we could produce green hydrogen and ammonia at a competitive price in comparison to other forms of hydrogen and ammonia. The local and global policies and incentives implemented in Namibia are encouraging industries to embrace green hydrogen and align itself with sustainable practices. Hydrogen has already been utilized as an energy source and as green hydrogen starts to be produced at competitive rates, these use cases will only continue to increase.
Energy Capital & Power is a strategic partner of the Namibia International Energy Conference (NIEC) – taking place in Windhoek on April 23-25, 2024. The 6th annual conference unites industry leaders, business executives and policymakers to engage in dialogue, exchange ideas, create new partnerships and identify strategies to foster a prosperous energy industry in Namibia and beyond. For more information, please visit https://www.nieconference.com/
