The green hydrogen project negotiations between Hyphen and the Namibian government are stuck in negotiations with the developer wanting concessions from government.
According to confidential information leaked by the Affirmative Repositioning activist, Dr Job Amupanda, Hyphen that has been touted to be coming with a 10 billion US dollar investment to develop the green hydrogen ambitions of Namibia is negotiating for some give-aways and changes to the country’s laws, including prospecting and mining rights.
So far, what is known about the negotiations is that the newly created Welwitschia Sovereign Wealth Fund will take the role of strategic equity partner in all green hydrogen projects in Namibia, targeting a 24% equity shareholding in Hyphen’s project, with no requirements for additional local equity shareholder participation.
Amupanda revealed over the weekend that he has a dossier of documents about the negotiations between the Namibian Government and Hyphen.
According to Amupanda, Hyphen wants the government to build houses and accommodation for the German employees in Luderitz.
The massive project is to be set up in the Spergebiet of the Namib Desert, in the south where the sun and wind will provide a good source of renewable energy.
Amupanda says in his leak that the company also does not want Exclusive Prospecting Licences (EPLs) to be issued in the area where the green hydrogen project is to be set up.
Another concession, Hyphen wants from the Namibian government is for the Diamond Act to be amended. In terms of the Diamond Act, the Spergebiet is declared a security area and no one is allowed in the area without a police clearance and permit.
The Director General of the National Planning Commission, Obeth Kandjoze confirmed to the NBC of the concessions wanted by Hyphen, but said that these issues are still negotiated and have not been agreed to.
Hyphen and the Namibian government are expected to sign an Implementation Agreement before the end of the year, and the company’s leaders have been quoted in the local media recently that they are happy with the progress of the negotiations.
Hyphen is expected to complete all the necessary feasibility, engineering and permitting processes to enable construction to commence in January 2025, with commissioning of the first phase by the green hydrogen project by the end of 2026.
The German company has since appointed Boston Consulting Group and Lazard as its international strategic and financial advisors respectively, complementing its existing legal advisory team consisting of Slaughter and May and ENS Africa.
Meanwhile, it has appointed five Namibian nationals, including Toni Beukes the new environment, sustainability and governance leader who will ensure this is an equitable project that benefits the people of Namibia.