Namibia has reached another milestone in the development of its green hydrogen economy, inking a deal with green hydrogen development company HYPHEN Hydrogen Energy for the next phase of a $10 billion project set to be located in the Namib Desert’s Tsau//Khaeb National Park.
As per the terms of the agreement, green hydrogen will be exported to Europe following the completion of the project, thereby consolidating the country’s position as a global hydrogen hub.
The milestone comes just week ahead of the African Energy Chamber’s (AEC) Invest in African Energy Forum in Paris, a pivotal gathering that brings together movers and shakers from across the African and European energy sectors.
Following a series of successful editions held in London, Oslo, Dubai and Frankfurt – the German edition of which was centered on exploring hydrogen-related investment opportunities in Africa – the Paris forum will expand on previous discussions regarding Africa-Europe collaboration, laying the foundation for a strong slate of new deals to be signed aimed at maximizing Africa’s vast energy resources.
For its part, the Tsau//Khaeb green hydrogen project serves as not only a significant initiative in its own right, but as a demonstration of the potential for large-scale green hydrogen projects in Africa. Long-considered the final frontier for energy, Africa’s significant renewable energy resources offer critical opportunities for the continent to address energy access concerns through the development of widespread solar and wind energy systems, as well as industrialization through the utilization of green hydrogen fuels.
Green hydrogen projects have been cropping up across the continent, with markets such as South Africa, Mauritania and Egypt eager to capitalize on the benefits the resource provides. However, what sets the Namibian agenda apart if the country’s focus on global collaboration. Working closely with its German partners, the Government is driving tits green hydrogen project forward, and energy access and industrialization opportunities are soon to follow.
In addition to regional access, monetizing renewable through green hydrogen opens up avenues for broader socioeconomic growth in Africa, with revenue generated through exports trickling down into various facets of the African economy.
At a time when the African community is prioritizing energy security in the midst of the global energy transition, African green hydrogen projects will serve to meet dual goals of alleviating energy poverty while transitioning to sustainable energy sources. The HYPHEN-led green hydrogen project in Namibia is a testament to this.
Planned to be constructed in two phases, the plant will eventually produce up to two million tons of green ammonia per annum, energy which will be distributed for both regional, and now with the offtake agreement, global use. Production is targeted for 2030, and with the signing of the feasibility and implementation agreement set to be signed on Friday, Namibian President Hage Geingob states that, “We kickstart a process that has the potential to transform the lives of many in our country, the region and indeed the world.” (https://apo-opa.info/45qsn0l)
Both HYPHEN and the Namibian Government consider the signing of the feasibility and implementation agreement to serve as a benchmark for the sustainable and equitable development of green hydrogen project in Africa.
However, the agreement goes one step further to highlight the crucial role bilateral cooperation plays in developing energy projects in Africa. Under the soon-to-be signed agreement, the Government of Namibia will be responsible for equipping the country with the necessary regulatory, legal and fiscal environment to implement the project while HYPHEN is responsible for the technical, environment, financial, social and commercial delivery.
A testament to both Africa-global relations as well as the role of public-private partnerships, this framework can be replicated in other markets in Africa.
“Namibia continues to make significant strides towards becoming a global energy giant. Notwithstanding the milestones that continue to be achieved regarding its oil and gas sector, the country has taken an accelerated approach to maximizing its renewable energy resources in collaboration with global partners. This green hydrogen project will open up significant avenues for the country, ushering in a new era of industrialization, energy access and revenue generation and positioning the country as a global green hydrogen contender. As Europe looks towards the lucrative opportunities in Africa, partnerships such as those between Namibia and Germany serve as a blueprint for other markets across the continent,”
stated NJ Ayuk, Executive Chairman of the AEC.