Staff Writer
The African Development Bank’s (AfDB) board of directors has approved a US$10 million (approximately N$200 billion) loan to Hyphen Hydrogen Energy to support its green ammonia project, which is valued at more than US$10 billion.
The project aims to position Namibia as a leader in the global green hydrogen industry.
The loan comes from the Sustainable Energy Fund for Africa (SEFA) and will fund front-end engineering design studies.
These studies cover solar and wind generation, battery energy storage, electrolyser capacity, and desalination infrastructure.
The support aims to reduce project risks and attract the large-scale financing needed for full development.
SEFA is a multi-donor fund that provides catalytic finance to unlock private-sector investment in renewable energy and energy efficiency.
The fund offers technical assistance and concessional financing to remove barriers, strengthen the project pipeline, and improve the risk profile of investments.
The Hyphen project will use Namibia’s strong solar and wind resources.
The first phase includes 3.75 GW of renewable energy, battery storage, 1.5 GW of electrolyser capacity, and infrastructure such as desalination plants, pipelines, transmission lines, and upgraded port facilities. All components will follow high environmental and social standards.
Upon completion, the project is expected to produce 2 million tonnes of green ammonia a year for export to key markets. It also aims to support local economic development under a socio-economic plan included in the 40-year concession agreement.
The project could cut 5 million tonnes of carbon dioxide (CO₂) emissions every year, equal to removing more than one million cars from the road. It will deploy 7.5 GW of renewable energy capacity, more than ten times Namibia’s current installed capacity. It will also supply 3 million litres of clean water daily through desalination to the water-scarce town of Lüderitz.
Moono Mupotola, African Development Bank country manager for Namibia and deputy director general for Southern Africa, said, “This is about far more than energy infrastructure. This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet. Namibia is showing the world that Africa is not just participating in the green economy; we are defining it.”
Hyphen CEO Marco Raffinetti said, “The African Development Bank’s approval of this pre-investment facility represents a strong vote of confidence in Hyphen’s project and in the broad ambitions of Namibia to develop one of the world’s most transformative green hydrogen projects.”
The project is expected to create 15 000 construction jobs and 3 000 permanent jobs, with 90% reserved for Namibians and 20% targeting youth, in a country where youth unemployment exceeds 38%.
The Hyphen project is a central part of the government’s Southern Corridor Development Initiative and is expected to serve as a model for other African countries with strong renewable energy potential.
