ENS has one of the largest practitioner networks on the African continent, able to share knowledge and access partner expertise across jurisdictions. In Namibia, the law firm has been awarded the Namibian National Law Firm of the Year for the past three years, and is playing an active role in defining the country’s regulatory framework for green hydrogen development. Energy Capital & Power spoke with Senior Associate Stefanie Busch about helping clients navigate Namibia’s emerging upstream and hydrogen sectors, while implementing sustainable transition strategies.
What role does ENS play in the energy sector?
The oil and gas industry is inherently technical, complex and multidisciplinary. This requires a deep expertise and technical understanding across the upstream, midstream and downstream industries. This complexity is further compounded by the industry’s high level of regulation, which varies depending on the jurisdiction in which you operate. At ENS, we aim to stand beside and guide our clients through this regulatory terrain with our deep knowledge of the oil and gas industry. Furthermore, we offer taxation services related to the industry. We also have in-depth knowledge of the policy and legislative environment of the extractives industry, as well as expertise in resolving disputes within the sector. In the Namibian space, we have been advising a handful of potential entities interested in entering the market, including oil companies and service providers to the oil industry, as well as existing players in the market. Our advice encompasses various aspects, including market-related acquisitions and navigating the administrative hurdles involved in transferring interests in petroleum exploration licenses to new entrants into the Namibian petroleum market.
How does ENS help its clients resolve some of the complex challenges they face in implementing successful energy transition strategies?
We have a growing environmental, social and governance (ESG) practice within the firm. Our ESG practice offers guidance to clients on sustainability and circular economy requirements. These requirements may be mandated by local laws, lenders or corporate policies, depending on the jurisdiction. In practice, we are seeing a growing adoption and enforcement of ESG considerations by the private sector. As ESG and impact lawyers, our role is to advise clients on potential ESG risks, challenges and opportunities in their operations and assist in developing strategies and company policies to meet any requirements imposed by law or expected by third parties, such as lenders.
Which projects has ENS engaged with in Namibia?
From a renewable energy perspective, in the past few years, we have worked with various project developers and lenders on projects established under the Renewable Feed-In-Tariff (REFIT) Program. Over the years, we have established ourselves as the leading experts in this space, more recently in respect to the emerging green hydrogen sector in Namibia and its corresponding regulatory landscape. Our advice has entailed analyzing the existing regulatory framework and identifying the gaps within such framework. We have had the opportunity to gain insights from our discussions with the private sector, as well as through our comparative research on the approach being adopted by other jurisdictions in regulating this nascent sector. From this perspective, we have actively engaged ourselves to stay informed and participate in the development of any regulatory regime relating to green hydrogen or synthetic fuels. Our objective is to contribute to the implementation of a clear regulatory landscape in the green hydrogen sector, which is particularly important for investors seeking to make informed decisions regarding potential investments into Namibia.
What is the potential for Namibia to become a green hydrogen production hub?
From the perspective of natural resources, Namibia is undoubtedly one of the most favorable jurisdictions for entering the green hydrogen market. In respect to green hydrogen production, the key resource is suitably-located land. Such land requires a good renewable energy potential and ample, unoccupied space to allow for economies of scale. Additional elements include a sufficient water source (such as by way of desalination of seawater), as well as the proximity to an export facility with good connections to international offtake markets. With all these factors being in place in Namibia, the country has what it takes to become a green energy hub. Namibia’s potential as a green energy hub also extends beyond being a center for ammonia production and export to international markets. There is a growing recognition that energy-intensive industries will gravitate towards regions with the most cost-effective energy resources. Namibia, therefore, holds tremendous potential to become a hub for renewable energy equipment manufacturing as well as to host other energy-intensive industries, such as steel production, mineral processing and data centers, to name a few. Traditionally located in the Global North, the operation of these industries could move to the Global South, thereby simultaneously leveraging Namibia’s abundant renewable energy resources to decarbonize these industrial sectors.
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/
