Namibia has staked an early global claim on green hydrogen along its sun- and wind-rich coast.
But far from Lüderitz’s gusts and gigawatts lies a quieter possibility: blue hydrogen—hydrogen made from fossil feedstock with carbon capture and storage (CCS)—that could draw on the country’s coal and gas geology inland while the green build-out scales up.
Blue hydrogen is produced from natural gas or coal using established technologies, such as steam-methane reforming (SMR) or coal gasification, with most carbon dioxide being captured and stored underground.
According to the International Energy Agency, the process can capture between 85 and 95 per cent of emissions when combined with CCS.
This is the model used by projects such as Air Products’ complex in Edmonton, Canada; Equinor’s H2H Saltend in the United Kingdom’s Humber industrial zone; and Japan’s hydrogen energy supply chain pilot, which converts brown coal to hydrogen for export.
These ventures aim to supply low-carbon hydrogen to industries such as refining, chemicals, and heavy transportation.
For Namibia, the concept of blue hydrogen gains strength from two inland feedstocks: coal and gas.
In the Aranos sub-basin of the Hardap and Omaheke regions, deep Karoo-age coal seams have long been known but underutilised.
Geological Survey data and earlier exploration by Aranos Gas in 2008 revealed significant coal and coal-bed methane potential, although gas flows were sub-economic.
Coal remains a carbon-rich resource that could support gasification and hydrogen production if paired with carbon capture.
At the same time, the onshore Kavango Basin and the offshore Kudu Gas and Orange Basin discoveries suggest that Namibia is poised to become a significant producer of gas.
If a reliable domestic gas supply is secured, blue hydrogen produced via SMR or autothermal reforming with CCS could complement green hydrogen by offering a steady inland feedstock.
Cost, however, remains decisive. Analysts at the International Renewable Energy Agency estimate current green hydrogen costs between US$5 and US$7 per kilogram in most regions, with Namibia projected to reach roughly US$1.6 to US$2.3 per kilogram as large-scale renewables mature.
Blue hydrogen, depending on gas price and capture rate, generally ranges between US$1.6 and US$3.5 per kilogram, according to the IEA and BloombergNEF.
Blue hydrogen plants can typically be delivered in three to five years, benefiting from proven reformer technology and existing natural gas infrastructure.
In contrast, large green hydrogen complexes can take five to eight years to reach full capacity, due to the need for new renewable energy sources, desalination facilities, and electrolysis equipment.
Blue, therefore, offers a faster but transitional route, capable of supplying the domestic industry while Namibia’s coastal renewables expand.
Storage and safety are the critical tests. Carbon dioxide must be sequestered permanently in deep saline aquifers or depleted hydrocarbon fields.
Namibia could eventually utilise offshore geological formations, once mapped by oil companies, or explore onshore sedimentary traps within the Karoo sequence. The country will need to prepare a national CO₂ Storage atlas, similar to those developed by Norway and the United Kingdom, to verify containment sites.
On the safety side, hydrogen’s high flammability and material embrittlement require robust engineering standards, but these are already common in refineries that handle grey hydrogen.
Carbon capture introduces additional risks related to CO₂ compression and transportation, which can be mitigated through continuous monitoring and well integrity testing.
Around the world, blue hydrogen is gaining momentum because it can repurpose existing fossil fuel assets while reducing emissions.
In Canada, Air Products’ Edmonton facility will supply low-carbon hydrogen to refineries and freight networks. In Britain, the Humber project will supply blue hydrogen into a regional pipeline network, with carbon dioxide (CO₂) storage in the North Sea.
In the United States, new Gulf Coast ventures supported by 45Q carbon capture tax credits are advancing large-scale production of blue hydrogen and ammonia.
Japan and Australia’s brown-coal-to-hydrogen partnership, though still in its pilot phase, demonstrates the technical viability of coal-based hydrogen with carbon capture.
For Namibia, the future lies in complementarity, not competition. Green hydrogen remains the flagship export opportunity, anchored by the Hyphen Hydrogen Energy project near Lüderitz.
In contrast, blue hydrogen could serve as an inland industrial feedstock, fueling fertiliser plants, cement kilns, and heavy-haul transport in the central and southern regions.
The shorter delivery times and lower initial capital requirements of blue hydrogen make it an attractive bridge technology, capable of building national hydrogen expertise, testing CO₂-storage capacity, and establishing domestic markets that will later absorb green hydrogen.
Ultimately, the colour of hydrogen matters less than its ability to decarbonise Namibia’s economy.
If gas resources mature and secure storage formations are confirmed, Namibia could shift gears—utilising blue hydrogen as a strategic stepping-stone toward a fully renewable hydrogen future powered by its vast coastal sun and wind resources.
