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Green Ammonia to Earn N$60bn – 4 projects to deliver the windfall

by Editor
August 8, 2025
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Hyphen Hydrogen moves closer to reality
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Namibia is expected to gain over N$60 billion annually from green ammonia exports by the end of this decade, positioning itself as a leading global supplier of clean hydrogen derivatives.

This estimate is based on the combined planned output of 3.3 million tonnes per annum (MTPA) from four flagship projects—Hyphen (2 MTPA), Cleanergy (0.7 MTPA), Zhero/Envision (0.5 MTPA), and HyIron (0.1 MTPA). At a conservative global market price of US$1,100 per tonne, this translates to about US$3.63 billion in export revenue.

Using an exchange rate of N$16.75 to the US dollar, Namibia’s gross earnings could exceed N$60.8 billion annually.

This does not yet include the additional fiscal benefits from taxes, royalties, lease payments, and local reinvestment.

NDP6’s ambition of reaching 1.3 MTPA green ammonia by 2030 is supported by the pipeline of large-scale projects, especially Hyphen (2 MTPA), Cleanergy, and Zhero/Envision, which together well exceed the national target.

In Desired Outcome 0112, the Sixth National Development Plan (NDP6) explicitly targets the development of at least four large-scale hydrogen and derivative production facilities with a combined capacity of no less than 1.3 million tonnes of green ammonia annually by 2030.

The plan also highlights the importance of local skills development, preferential procurement, and shared infrastructure to ensure long-term national benefit from the hydrogen economy.

HyIron is initially focused on hydrogen-based industrial production (DRI) and will phase in ammonia later, complementing its overall output.

As Namibia pushes toward becoming a global green energy hub, these four mega-projects are reshaping the country’s industrial future—blending foreign investment, domestic innovation, and regional cooperation.

Together, they chart a course for large-scale clean ammonia production, which could position Namibia as Africa’s leading exporter of green hydrogen derivatives by the end of the decade.

Hyphen leads with scale and certainty

The flagship Hyphen Hydrogen Energy project remains the most advanced and ambitious.

Backed by a joint venture between Nicholas Holdings Limited (UK) and Enertrag AG (Germany), Hyphen secured full preferred bidder status under Namibia’s Green Hydrogen & Derivatives Strategy. In 2024, German utility RWE joined as an offtake and equity partner.

The project aims to deliver 1 MTPA of green ammonia by 2028, ramping up to 2 MTPA by 2030. It is situated in the Tsau //Khaeb National Park, where the company has secured land and initiated the permitting process.

Hyphen’s Phase 1 development is expected to require approximately US$4.5 billion, with total investment across both phases forecast at US$10 billion.

The project includes a 5–6 GW solar and wind facility, 3 GW of electrolyser capacity, and downstream ammonia production units.

It forms the backbone of Namibia’s hydrogen export strategy.

Cleanergy Solutions builds Namibia’s local capacity

Cleanergy Solutions, a Namibian–Belgian joint venture between Ohlthaver & List Group (30%) and Belgium’s CMB.TECH, predominantly controlled by the Saverys family through CMB NV, is investing heavily in its green ammonia project, with Phase 1 expected to begin production around 2027 or 2028.

The initial production volume is approximately 200,000 tonnes per annum, with the potential to scale up as part of a larger collective target of 700,000 tonnes per annum.

The first phase alone carries an estimated price tag of N$50 billion, or about US$3 billion.

The facility will feature renewable energy generation, electrolysis, and ammonia synthesis capabilities, creating thousands of jobs during both construction and operation.

Cleanergy’s local shareholding structure and integration with Namibian SMEs have drawn praise for advancing inclusive industrialisation.

Zhero and Envision expand the export pipeline

Another large-scale project underway is a joint venture between Zhero, a European energy infrastructure developer, and Envision Energy, a major Chinese renewable energy company.

This partnership is expected to contribute up to 500,000 tonnes per annum (tpa) of green ammonia by 2030, helping to meet regional offtake demand from South Africa and the EU.

While specific investment numbers have not been publicly confirmed, the project is considered part of Namibia’s wider multi-billion-dollar hydrogen roadmap. Zhero and Envision are leveraging joint expertise in renewables, hydrogen processing, and logistics to position their project as a key export node.

HyIron’s DRI pathway brings industry into the mix

Unlike the others, HyIron Namibia is not initially targeting ammonia export.

Instead, the project—which began producing direct reduced iron (DRI) in April 2025—uses green hydrogen to decarbonise industrial steel production.

Located near Arandis, the pilot facility delivers around 15,000 tonnes of DRI annually, with plans to scale up to 2 MTPA.

Though the ammonia component has not yet been deployed, HyIron intends to integrate green ammonia later as part of its feedstock and export chain.

The Namibian–German venture thus adds strategic depth to the country’s hydrogen economy and supports NDP6 goals for decarbonised heavy industry.

Aligning strategy with capacity

Collectively, these four projects not only meet but also exceed Namibia’s stated NDP6 target of producing 1.3 million tonnes of green ammonia annually by 2030.

With more than US$15 billion in potential investments and full regional integration, Namibia is rapidly becoming a pioneer in green hydrogen and ammonia—not just in Africa, but globally.

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