Namibia’s dedicated green hydrogen blended finance vehicle, SDG Namibia One Fund, has entered into an agreement with Hyphen Hydrogen Energy to acquire a 24% stake in the latter’s $10-billion green hydrogen development.
The Fund will contribute €23 million ($25.1 million) to support the development of Hyphen Energy’s Tsau – Khaeb Green Hydrogen project, the first large-scale green hydrogen facility in Namibia and the largest in sub-Saharan Africa.
According to Benedict Libanda, CEO of the Environmental Investment Fund of Namibia, the Fund’s involvement will not only support project development, but also propel Namibia towards global leadership in hydrogen production, marking a significant milestone for green industrialization.
With a planned capacity of 7 GW of renewable energy and 3 GW of electrolyzer capacity, the project is set to produce two million tons of green hydrogen for local and foreign markets, reducing Namibia’s carbon footprint by five to six million tons annually. The initiative aims to bolster economic growth, generating 15,000 jobs and 3,000 permanent positions during construction and operation across Phases 1 and 2.
Andrew Johnstone, CEO of Climate Fund Managers, highlighted the pivotal role of combining private and public sector financing in helping Namibia achieve its 2050 net-zero targets through optimal deployment of renewable energy projects.
The Fund is jointly managed by Climate Fund Managers, Invest International and the Environmental Investment Fund of Namibia and seeks to raise $10 billion to support Namibia’s green hydrogen strategy.