SDG Namibia One is a $1 billion target blended finance fund managed by Nam-H2 Fund Managers, CFM’s joint venture with the Environmental Investment Fund of Namibia and Invest International created to support the growth of Namibia’s green hydrogen sector and its enabling infrastructure.
Hyphen, a joint venture between Nicholas Holdings Limited and ENERTRAG SE, was appointed the preferred bidder by the Namibian government to develop the first green hydrogen project in Namibia for export.
This is said to be the largest green hydrogen production project in Sub-Saharan Africa. Upon completion, it is expected to produce 2 million tonnes of green ammonia annually from ~7GW of renewable energy generation capacity and ~3GW of electrolyzer capacity, avoiding an estimated 5-6 million tonnes of CO2 emissions a year.
It is estimated that the project will create up to 15,000 new jobs during the construction phase and 3,000 permanent jobs during its operation, with a target for around 90% of these jobs to be filled by Namibians. Hyphen previously noted it is targeting 30% local procurement for goods, services and materials throughout both the construction and operational phases.
One potential destination for Namibian ammonia is a terminal for green ammonia in Brunsbüttel, Germany. At the beginning of 2024, the German government presented a letter of intent (LoI) to ENERTRAG, confirming the suitability of the Hyphen project to be considered for final approval to be designated as a “strategic foreign project.”
It is worth noting that in 2023, Hyphen and the Development Bank of Southern Africa (DBSA) partnered up for a funding facility to be used to advance the development of the project. Furthermore, the company signed a partnership agreement with ILF Consulting Engineers, under which the ILF agreed to provide project management services, technical expertise, procurement and contract advice for the project.
