Green hydrogen project in Namibia gets $10m loan boost

The African Development Bank has approved a $10 million loan to support a green ammonia project in Namibia. The financing, drawn from the Sustainable Energy Fund for Africa, will fund front‑end engineering design studies for the venture, which is being developed by Hyphen Hydrogen Energy, a Namibian green‑hydrogen company. The project, valued at more than $10 billion, aims to harness Namibia’s abundant solar and wind resources to produce 2 million tons of green ammonia each year for export.

The first phase will comprise 3.75 GW of renewable‑energy generation, battery storage, and 1.5 GW of electrolyser capacity, together with supporting infrastructure such as desalination facilities and transmission lines. By supplying 3 million liters of clean water daily to the water‑scarce Lüderitz region in southern Namibia, the project also addresses local water needs.

The development is expected to create 15 000 construction jobs and 3 000 permanent positions, with 90 % of these reserved for Namibian nationals and 20 % targeted at youth. It will reduce carbon emissions by 5 million tons annually—equivalent to removing more than one million cars from the road—and help position Namibia as a pioneer in the global green‑hydrogen economy.

The loan signals confidence in Hyphen’s initiative and Namibia’s ambition to deliver one of the world’s most transformative green‑hydrogen projects. It is part of the Namibian government’s Southern Corridor Development Initiative, which seeks to promote economic development and job creation in the region. The bank’s support reinforces its commitment to renewable energy and carbon‑reduction efforts across Africa, with the project expected to have a demonstrative effect for other countries rich in renewable resources.

With the financing secured, the next steps include completing the front‑end engineering design studies and obtaining additional funding needed to bring the project to fruition, paving the way for significant local economic impact and a transition toward a greener economy.