The finance ministry says it needs to be sure of the green hydrogen project before releasing N$16b (24%) to meet its quota.
Namibia’s preferred bidder for the green hydrogen project – Hyphen Hydrogen Energy – is developing the first-ever and biggest plant in sub-Saharan Africa at Luderitz.
When completed, the project will produce 2 million tonnes of green ammonia annually before the end of the decade for regional and global markets, from ~7GW of renewable generation capacity and ~3GW of electrolyser capacity.
The Sun newspaper quotes finance ministry spokesperson Wilson Shikoto, saying they are still looking for a mechanism to acquire the 24% stake in Hyphen Energy’s US$10b green hydrogen project planned for Luderitz.
“Treasury has not incorporated any activities or revenues relating to the oil and gas sector in the macro-fiscal framework and will only do so once there is more certainty regarding the operations of the sector,” Shikoto told the English daily.
Hyphen Hydrogen has partnered with the German company Enertrag and Nicholas Holdings.
The government of Namibia wants a 24% stake, equivalent to N$16b.
In November 2022, Hyphen Hydrogen Energy signed a €35 million letter of intent funding agreement with the European Investment Bank (EIB).
The €35 million facility comprises €10 million in non-refundable grants and €25 million in concessional loans.
The EIB funding is under the auspices of the European Union and the Samoa agreement, which Namibia has refused to sign.
In October 2023, Hyphen agreed with the Development Bank of Southern Africa (DBSA) for a funding facility to progress the development of Hyphen’s landmark green hydrogen project.
The ABSA facility will be for engineering, environmental, and socio-economic development workstreams from the project development process to the final investment decision.
