Hyphen Energy is moving its green hydrogen project into the next stage of development through a landmark US$10 billion (approximately N$185 billion) contract with China National Chemical Engineering & Construction Corporation Seven (CC7).
The agreement between Hyphen Hydrogen Energy and CC7, a subsidiary of the state-owned China National Chemical Engineering Company (CNCEC), marks a significant advancement in Namibia’s green hydrogen programme.
The agreements cover front-end engineering and design (FEED) as well as engineering, procurement, and construction (EPC) for Hyphen’s large-scale green hydrogen and ammonia development.
The project, powered by 3 GW of renewable energy, is designed to produce up to 2.4 million tonnes of green ammonia annually for export markets.
Economic and strategic significance
Hyphen CEO Marco Raffinetti described the agreement as a significant milestone for Namibia.
“This project is of great importance to Namibia’s economic future. It will drive export revenue, attract global investment, and stimulate industrial development,” he said.
Valued at US$10 billion—an amount nearly equivalent to Namibia’s entire GDP (roughly N$185 billion)—the project aims to establish the country as a key hub for green energy in Africa.
The Namibian government acquired a 24% stake in Hyphen in late 2024, underscoring its long-term commitment to the energy transition and industrialisation.
Structure and project footprint
Hyphen Hydrogen Energy (Pty) Ltd is a Namibian-registered company founded in 2021 as part of the country’s green hydrogen strategy.
It is jointly owned by Germany’s Enertrag, a leading renewable energy developer, and Nicholas Holdings, a UK-based firm with extensive African infrastructure experience.
In late 2024, the government of Namibia became a shareholder through its SDG Namibia One Fund, holding a 24% equity stake.
The company holds a concession of ~4,000 km² in Tsau ǁKhaeb National Park, near Lüderitz.
The project is being developed in phases, with Phase 1 targeting the production of 1 million tonnes of green ammonia by 2028.
Full-scale production of up to 2.4 million tonnes is expected by 2030.
The project will be powered by more than 5 GW of solar and wind energy and approximately 3 GW of electrolyser capacity.
Job creation and infrastructure planning
Hyphen’s initiative is expected to generate approximately 15,000 construction jobs over a 4– 5 year period and 3,000 permanent positions, with more than 90% of these positions to be filled by Namibians.
The project footprint is intentionally limited to under 3% of the concession area, and common user infrastructure—such as desalination plants, power evacuation facilities, and pipelines—will be shared among other hydrogen developers in the region.
Hyphen operates under a formal Concession Agreement signed with the Namibian government in May 2023.
It ensures stable legal, fiscal, and land tenure frameworks for the execution of projects.
A major export agreement with RWE, signed in 2022, provides for the offtake of up to 300,000 tonnes of green ammonia per year, reinforcing Namibia’s integration into global green energy markets.
CC7 to lead EPC execution
CC7, which has extensive experience in petrochemical and renewable infrastructure, will lead the design and construction phases.
Chairman Longhai said the company would ensure the successful delivery of “a benchmark renewable energy project.”
The signing ceremony was attended by China Chemical Chairman Mo Dingge and Hyphen leadership, reinforcing bilateral cooperation under the Belt and Road Initiative.
About CC7
CC7 is a wholly owned subsidiary of China National Chemical Engineering Co., Ltd (CNCEC), one of China’s flagship state-owned engineering and construction conglomerates supervised by the State Assets Supervision and Administration Commission of the State Council.
Founded in 1964 and headquartered in Chengdu, Sichuan Province, CC7 has evolved into CNCEC’s global EPC arm, simultaneously developing domestic and international projects across chemical and non-chemical sectors.
Global footprint & core competencies
CC7 has executed over 200 medium- to large-scale engineering and construction projects spanning Iraq, Bangladesh, Malaysia, Uzbekistan, Nigeria, Saudi Arabia, Russia, and more.
Its capabilities encompass Grade-A design and construction certification for petrochemical plants, municipal infrastructure, pipelines, roads, and steel structure erection.
The company maintains high-quality standards, holding certifications including ISO 9001, ISO 14001, and OHSAS 18001. Notably, CC7 ranks consistently among China’s “Top 100 Contractors” overseas, achieving 6th place in new contract value and 18th in international operating income in 2019.
Technical Strength & Policy Alignment
CC7 is a recognised pioneer in China’s overseas industrial strategy, leveraging robust project management systems, advanced technical tools, and a fleet of over 3,400 modern construction machines.
It has earned numerous national awards, including the “National Luban Prize,” China’s highest accolade for construction quality.
Namibia’s global green hydrogen ambitions
Hyphen is a joint venture between Germany’s Enertrag and UK-based Nicholas Holdings.
It is leading Namibia’s first major green hydrogen project and is expected to support national and global efforts to reduce carbon emissions.
The project marks a significant step toward Namibia’s integration into international green energy supply chains.
Construction and financing plans are now underway, setting the stage for Namibia’s emergence as a key player in global green ammonia and hydrogen production.
