The African Development Bank has approved a $10 million loan to support a green ammonia project in Namibia. The project, valued at over $10 billion, is being developed by Hyphen Hydrogen Energy, a Namibian green hydrogen development company. The loan, sourced from the Sustainable Energy Fund for Africa, will be used to fund front-end engineering design studies for the project, which includes solar and wind generation, battery energy storage systems, and electrolyser capacity.
The project aims to leverage Namibia’s abundant solar and wind energy resources to produce 2 million tons of green ammonia annually for export. The first phase of the project will include 3.75 GW of renewable energy generation, battery storage, and 1.5 GW of electrolyser capacity, as well as supporting infrastructure such as desalination facilities and transmission lines. The project is expected to create 15,000 construction jobs and 3,000 permanent positions, with 90% of these reserved for Namibian nationals and 20% targeting youth.
The loan is seen as a significant step towards positioning Namibia as a pioneer in the global green hydrogen economy. The project is poised to contribute to local economic development and reduce carbon emissions by 5 million tons annually, equivalent to removing over one million cars from the road. Additionally, the project will supply 3 million liters of clean water daily to the water-scarce region of Lüderitz in Southern Namibia.
The African Development Bank’s approval of the loan is a vote of confidence in Hyphen’s project and in Namibia’s ambitions to develop one of the world’s most transformative green hydrogen projects. The project is expected to have a demonstration effect across Africa, particularly in countries with abundant renewable energy resources. The bank’s support for the project reinforces its commitment to promoting renewable energy and reducing carbon emissions in Africa.
The Hyphen project is part of the Namibian government’s Southern Corridor Development Initiative, which aims to promote economic development and job creation in the region. The project’s success is expected to have a significant impact on the local economy and contribute to the country’s transition to a green economy. With the loan approved, the project is now poised to move forward, with the next steps expected to include the completion of the front-end engineering design studies and the securing of additional financing for the project’s realization.