November 01, 2024
Economy

Namibia, Hyphen to conclude green hydrogen agreement next month

April 17, 2023
Namibia, Hyphen to conclude green hydrogen agreement next month

The government is set to conclude contractual negotiations with Hyphen Hydrogen Energy, a company awarded the bid to develop green hydrogen projects in Namibia, and with an investment of N $194 billion (€9.7 billion) needed for major infrastructures to kick off.

At full capacity, the Hyphen project is expected to produce about 300,000 tonnes of green hydrogen per year for regional and global markets from 5GW of renewable generation capacity and 3GW electrolyser.

“We are hoping to conclude negotiations and agreements in May, thereafter start implementing long-awaited dreams of the project and make it a reality,” said Namibia's Green Hydrogen Commissioner James Mnyupe. 

He further revealed that in the first phase of the project, N$70 billion (€3.5 billion) will be used on the green hydrogen pipeline, N$24 billion (€1.2 billion) on the water pipeline as well as N$100 billion (€5 billion) on the transmission lines.

“That is the amount needed just for the bulk infrastructure, and to deploy these types of assets, you will need funding beyond Namibia without any doubt,” he said.

The project once fully developed will employ an estimated 3,000 people, with 15,000 construction jobs supported over the four-year construction period. Over 90% of these jobs are expected to be filled by local Namibians.

“Looking at the figures of jobs, we are not only producing molecules but stimulating and growing the economy, and this is the part the government is playing towards alleviating poverty and unemployment,” added Mnyupe. 

He made these remarks on Friday at Luderitz during a stakeholder engagement with President Hage Geingob, community members, administrators and political heads, on the progress made so far to the development of green hydrogen and ammonia in the Tsau-//Khaeb national park in the //Kharas Region. This is done in line with the economic advancement pillar of the second Harambee Prosperity Plan (HPPII).

Meanwhile, National Planning Commission Director General Obeth Kandjoze said “the project is coming out of the woods despite having been criticised when the idea was being coined. We are locked in boardroom meetings with the selected bidder trying to agree on the terms and conditions, and we are hoping soon we come out punching in the air with excitement of a beneficial outcome.”

Germany special envoy to Namibia on green hydrogen, Raainer Bakker, made their expansion support available to the town of Luderitz, in terms of housing, water provision and sewerage, among others. The town is in the process of developing an expansion plan, but to execute that it needs about N$10-N$15 million.

Bakker said their involvement is so significant because Namibia producing green ammonia will present an affordable opportunity to Germany as opposed to if it was produced there.

“Namibia is not the only country that can produce green ammonia. We could do it in Germany but we don't have the amount of wind like here in Namibia. Us producing it in Germany it would be too expensive and no one would want to buy it. Governments in Europe don't buy Ammonia, but it is the companies and they look around the globe to get cheap products. Therefore here [Namibia] you have an advantage because you have wind and solar all in one place, as opposed to other countries which are thousands of kilometres away,” he stated.

Last year Germany announced that it would invest €3 billion to support international partnerships owing to its need to import significant volumes of clean fuel and decarbonise its industry.

President Geingob, who was also in attendance, called for inclusivity when implementing the project, warning that exclusion breeds conflict which can overshadow positive benefits.

“Inclusivity spells harmony, exclusivity spells conflict, and therefore if you have a project coming up to benefit the people, and you leave out others, they will likely oppose it even if it is a good idea. This is a very important project that we should be inclusive of, especially people from this region,” Geingob said rhetorically.

 

 

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Last modified on Tuesday, 18 April 2023 19:18
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