Niël Terblanché
The Development Bank of Southern Africa (DBSA) has announced its support for Namibia’s groundbreaking green hydrogen project.
The DBSA’s funding will aid in the progression of Hyphen Hydrogen Energy’s ambitious project, which is poised to transform the country’s energy landscape.
With a substantial funding facility, the bank is set to partially finance various crucial aspects of the project, including engineering work, environmental assessments, and socioeconomic development strategies. This preparation will pave the way for a final investment decision on the project.
Hyphen Hydrogen Energy’s project, estimated at a capital investment of N$200 billion, stands as a significant economic milestone, equating to Namibia’s annual gross domestic product.
The venture represents a collaboration between Nicholas Holdings Limited, a strategic investment firm, and Enertrag SE, known for its extensive portfolio of renewable energy projects across the globe.
This initiative is not just a commercial venture; it is a crucial part of Namibia’s strategic plan to establish itself as a leader in the green hydrogen industry. The project’s scope is vast, aiming to produce 2 million tonnes per year of green ammonia from an impressive 7GW of renewable generation capacity and 3GW of electrolyser capacity.
The project will not only benefit the regional market but also cater to the global demand for sustainable energy sources.
The DBSA, a government-owned entity, has a long-standing commitment to fostering economic growth and regional integration through sustainable development projects.
This new venture aligns perfectly with its mandate, offering an opportunity to contribute significantly to the sub-Saharan region’s economic and environmental objectives.
Marco Raffinetti, Chief Executive of Hydrogen Energy, expressed optimism about the partnership with DBSA, stating, “The finalization of this funding commitment is a testament to DBSA’s confidence in the Hyphen project. We eagerly anticipate working closely with DBSA to reach financial closure, where we envision these organizations playing a crucial role in providing debt funding.”
This collaboration between Hyphen Hydrogen Energy and DBSA is more than an economic venture; it represents a leap towards a cleaner, more sustainable future for Namibia and the wider African continent.
