The Namibian government has announced a USD 9.4 billion green hydrogen project to be created near the seaside town of Luderitz in southern Namibia.
Namibia stated that HYPHEN had been chosen as the preferred bidder to create a vertically integrated plant capable of producing 300 000 t/y of green hydrogen and green ammonia for export into regional and worldwide markets from year 2026 onwards, after a competitive bidding procedure.
HYPHEN will have the right to construct and operate the project for a 40-year term after the feasibility study is completed and the project reaches financial close.
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On 4Th November 2021, Presidential Economic Advisor James Mnyupe stated the project was strongly connected with the Namibia’s government strategy for green hydrogen and the Karas area in southern Namibia during a ceremony organized at the COP26 Commonwealth Pavilion.
While a significant focus will be on exporting to Europe, James Mnyupe stated that there was also the possibility of selling part of the products to neighbouring nations to take advantage of our leader’s ambition for the African Continental Free Trade Area.
The 1st USD 4.4 billion phases of the project, according to HYPHEN CEO Marco Raffinetti, would include the construction of 2 gigawatt of renewable-electricity production capacity and electrolyzer capacity to create green hydrogen for conversion into green conversion ammonia.
The project will employ desalinated water, some of which will be distributed to surrounding Luderitz settlements.
In the late 2020s, additional growth stages would bring the overall investment value to USD 9.4 billion, almost matching Namibia’s current gross domestic product.
According to HYPHEN director Dr. Tobias Bischof-Niemz, who is also the CEO of ENERTRAG South Africa, the investment represents a “milestone” in Namibia’s desire to become a major international producer of green hydrogen.
The integrated complex, once completed, will have a renewables generating capacity of 5 gigawatt and a 3 gigawatt electrolyzer capacity, with surplus energy capacity to be supplied into the Namibian grid and perhaps into the regional power pool.