“Namibia’s equity stake and management through this new Fund is truly world-leading and provides a template for future projects in Namibia and abroad. We want to show our gratitude and thanks to the government and our partners in this project,” Hyphen Hydrogen CEO Marco Rafinnetti said.
Hyphen Hydrogen Energy said Friday that SDG Namibia One Fund has agreed to take up the government’s 24% equity stake worth €23m in the massive green hydrogen project.
The SDG Namibia One Fund was launched on 8 November 2022 during the UN COP27 in Sharm El-Sheikh, Egypt.
The government announced on 20 June that it would exercise its right to take up a 24% equity interest in the Hyphen project at historical cost.
The announcement further said the SDG Namibia One Fund would manage the government’s equity.
Climate Fund Managers (CFM), Invest International and the Environmental Investment Fund (EIF) jointly managed the SDG Namibia One Fund.
EIF’s involvement ensures direct access and ownership of the project for the government, whereas CFM and Invest International bring in the required institutional and funding capacity.
Climate Fund Managers is a climate-centric blended finance fund manager, while Invest International is a Dutch development financing institution.
The Fund seeks to raise US$1b from public and private investors in Namibia and globally.
Hyphen Hydrogen CEO Marco Rafinnetti said that since they started working with the government, they have ensured that the project creates a new global standard for the sustainable and equitable development of international large-scale green hydrogen projects.
“Namibia’s equity stake and management through this new Fund is truly world-leading and provides a template for future projects in Namibia and abroad. We want to show our gratitude and thanks to the government and our partners in this project,” Rafinnetti said.
Invest International CEO Joost Oorthuizen said the announcement reinforces Namibia’s position as a leader in the global green energy movement and the government’s continued commitment to realising the potential of the green hydrogen sector for all Namibians.
Climate Fund Managers CEO Andrew Johnson said green hydrogen has a pivotal and unique role in achieving net-zero targets by 2050.
“The Hyphen project, groundbreaking in scale and impact, is a masterclass in how the public and private sectors can work together to unlock the potential of this exciting new sector, driving economic growth for Namibia and a greener, more resilient future,” Johnson said.
Benedict Libanda, the EIF head, said that acquiring a 24% equity stake in the Hyphen Green Hydrogen Project catalyses Namibia’s journey towards global leadership in green hydrogen production.
“This milestone is also a stepping stone for green industrialisation in Namibia, marking our commitment to shaping a cleaner and more sustainable tomorrow,” Libanda said.
Namibia is developing sub-Sahara Africa’s biggest green hydrogen project on a 4,000km² of land within the Tsau ||Khaeb National Park.
Upon completion of Phases 1 and 2, it will produce 2 million tonnes of green ammonia (a hydrogen derivative easier to transport) annually from ~7GW of predominantly wind and solar renewable energy generation capacity and ~3GW of electrolyser capacity.
The project will avoid an estimated 5-6 million tonnes of CO2 emissions annually.
The Hyphen project will catalyse economic growth in Namibia and turn the country’s green hydrogen ambitions into reality.
Hyphen estimates that the project across Phases 1 and 2 will create up to 15,000 new jobs during the construction phase and 3,000 permanent jobs during its operation on completion of both steps, with the target for 90% of these jobs to be filled by Namibians with 20% specifically targeted for youth. The project estimates 30% local procurement of goods, services and materials during the construction and operational phases.
Hyphen and GRN will validate these figures through comprehensive baseline studies conducted during the feasibility phase, with GRN undertaking its baseline studies in parallel.
COP28, which recently occurred in Dubai, was focused on bringing financial investment to the Global South.
To Hyphen’s knowledge, this is the first large-scale project where a government has procured and contracted a significant green ammonia initiative in Africa through an innovative financing partnership.
Hyphen, whose shareholders include renewable power developer Enertrag and infrastructure developer Nicholas Holdings Ltd, was announced as the preferred bidder in 2021 for the project.
