The African Development Bank (AfDB) has approved a $10 million (about N$185 million) loan to Hyphen Hydrogen Energy to accelerate development of Namibia’s flagship green ammonia project, an initiative valued at more than $10 billion (over N$185 billion) and regarded as one of the world’s most ambitious early large-scale green hydrogen developments.
The funding, provided through the Bank’s Sustainable Energy Fund for Africa (SEFA), will support front-end engineering design (FEED) studies covering solar and wind generation, battery storage, electrolysers and desalination infrastructure.
The AfDB said this pre-investment work will help de-risk the project and attract the massive private and institutional capital required for full development.
SEFA is a multi-donor special fund that deploys concessional finance and technical assistance to remove barriers to renewable energy investment and improve the risk-return profile of large clean-energy projects.
Hyphen’s first-phase development includes 3.75 GW of renewable energy, battery energy storage, 1.5 GW of electrolyser capacity, desalination facilities, pipelines, transmission lines and port enhancements.
All components will be developed to international environmental and social standards.
Once operational, the project is expected to produce 2 million tonnes of green ammonia per year for export under a 40-year concession agreement that embeds a socio-economic development plan for Namibia.
The AfDB estimates that the project will avert 5 million tonnes of CO₂ emissions annually, equivalent to removing more than one million cars from the road.
It will also deploy 7.5 GW of renewable energy, more than ten times Namibia’s current installed power capacity, and provide 3 million litres of desalinated water per day for the water-scarce town of Lüderitz.
Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa, said the initiative represents more than just energy infrastructure:
“This is about demonstrating Africa’s capacity to lead the global energy transition, create quality jobs for our youth, and build prosperity while protecting our planet.
Namibia is showing the world that Africa is not just participating in the green economy — we are defining it.”
Hyphen CEO Marco Raffinetti said the Bank’s approval strengthens confidence in the project’s trajectory:
“This facility, which will be utilised to partially fund the technical design phase of the project on our journey to the final investment decision, represents a strong vote of confidence in Hyphen’s project and in Namibia’s broader ambitions.”
Daniel Schroth, AfDB Director for Renewable Energy and Energy Efficiency, described SEFA’s support as “catalytic,” noting that early-stage funding will unlock billions in project financing.
The project is expected to create 15,000 construction jobs and 3,000 permanent positions, with 90% reserved for Namibians and 20% explicitly earmarked for youth, in a country where unemployment among young people exceeds 38%.
As the flagship of Namibia’s Southern Corridor Development Initiative, the Hyphen project is expected to have a demonstration effect across Africa and position the country as an early global leader in green hydrogen and green ammonia exports.
