With the $11-billion Hyphen Hydrogen Energy project having secured a range of technical and financial partners, Namibia is poised to become a major regional hub for green hydrogen production. Scheduled for completion in 2026, the project involves the construction of sub-Saharan Africa’s largest green hydrogen production facility to date, with an annual capacity target of 2 million tons of green ammonia at full-scale development.
Namibia’s potential for green hydrogen is largely fueled by the scope of its renewable resources, which includes year-round sunlight and access to seawater reserves in the Atlantic Ocean. With approximately 10 hours of sunlight daily for 300 days each year, Namibia’s geographical advantages, along with its vast expanse of open terrain and relatively low domestic energy demand, make it well-suited for producing green hydrogen through electrolysis powered by renewables.
Namibia’s Green Hydrogen Council unveiled its official strategy in 2022, aiming to transform the country into a net hydrogen exporter by meeting global demand of 10 million metric tons by 2030. The upcoming Namibia International Energy Conference (NIEC) – taking place on April 23-25 in Windhoek – will unpack the country’s approach to green hydrogen development, explore its production potential and connect current and future projects with potential offtakers.
With estimated production costs as low as $1.63- $2.17 per kilogram, Namibia’s green hydrogen represents one of the most cost-competitive globally and an attractive option for countries seeking to transition to clean energy and decarbonize heavy industry. For Namibia, economic benefits include an annual GDP boost of $15-20 billion, the creation of over 100,000 jobs, the export of 14 GW of clean power, and a reduction in greenhouse gas emissions by 45-60 million tons of CO2 per year by 2040.
Moreover, Namibia can leverage its green hydrogen to establish value-added industries, particularly in the production of by-products like ammonia, methanol and synthetic fuels. Serving as another flagship project, the planned Daures Green Hydrogen Village aims to produce Namibia’s first green hydrogen and ammonia by July 2024. The project entails the production of 18 tons of H2 and 100 tons of NH3 annually for ammonia sulfate fertilizer production in a co-located greenhouse. Meanwhile, Cleanergy Solutions Namibia has launched construction of Africa’s first public green hydrogen refueling station at the Port of Walvis Bay, which will supply hydrogen to trucks, port equipment and railway applications and promote its utilization as a clean fuel and conversion into green chemicals.
These initiatives, combined with the expected first oil production by 2029, have the potential to boost Namibia’s agricultural and agrochemical sectors, which relies heavily on petrochemical-made pesticides and fertilizers. Accordingly, this presents an opportunity for Namibia to leverage its renewable resources to avoid the resource curse commonly seen in African countries by diversifying the national economy and retaining local value.
While exporting green hydrogen will generate new revenues and facilitate access to external financing, establishing an entirely new and integrated industry remains challenging. As a result, Namibia is also in the process of developing captive green hydrogen initiatives focused on meeting local industrial needs. For example, state-owned railway operator TransNamib is upgrading its fleet with two H2 dual-fuel locomotives and accompanying hydrogen fuel equipment. Additionally, state-owned maritime operator Namibian Ports Authority will use green hydrogen as a fuel source, making it the first African port to deploy hydrogen-powered tugboats and port equipment at the Port of Walvis Bay.
Innovative solutions for financing Namibia’s green hydrogen industry will be unpacked at NIEC 2024, along with strategies for ensuring that first hydrogen production leads to diversified and industrialized growth across 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/.
