An initial US$5.15 million, about N$95 million, has been committed to advance what could become a multi-billion-dollar green ammonia project near Walvis Bay, as SDG Namibia One Fund signed a Development Funding Agreement with clean energy developer Zhero Europe.
The funding will support early-stage development and feasibility work for the Zhero Molecules Walvis Bay Project, an industrial-scale green ammonia facility planned for Namibia’s central coast in the Erongo Region.
The development capital is intended to take the project through detailed studies and permitting ahead of a targeted final investment decision in 2027, with commercial operations expected by 2030.
SDG Namibia One Fund, also known as Climate Investor Three Namibia, is managed by Climate Fund Managers in partnership with Dutch development finance institution Invest International and the Environmental Investment Fund of Namibia.
The fund is backed by the European Union’s Global Gateway investment strategy and Invest International, and focuses on mobilising blended finance into Namibia’s energy transition and green hydrogen sectors.
Zhero Molecules Walvis Bay is Zhero’s flagship green molecules project and is designed to produce 500,000 tonnes of green ammonia per year once operational, avoiding an estimated 1.2 million tonnes of carbon dioxide emissions annually.
The product is intended for global decarbonisation markets including fertilisers, maritime fuels and industrial feedstocks.
The project is expected to be powered by an integrated renewable energy system comprising 3 GW of solar photovoltaic capacity, 2.2 GWh of battery energy storage, a 1.6 GW electrolyser system and approximately 110 kilometres of new transmission infrastructure.
A desalination plant is planned to supply water for hydrogen production.
Zhero estimates that construction could create around 6,000 jobs, with approximately 500 permanent positions during operations, alongside opportunities for local suppliers and service providers.
Darron Johnson, Regional Head of Africa at Climate Fund Managers, said the funding is intended to de-risk the project and unlock larger pools of private capital.
He said the blended finance structure is designed to prepare the project for financial close and attract private investment at scale.
Zhero Chief Operating Officer Paolo Gallieri said the funding strengthens the company’s ability to deliver a world-class green ammonia facility aligned with Namibia’s national vision.
While the US$5.15 million announced covers only development work, projects of this scale typically require several billion US dollars in construction finance, positioning Zhero Molecules Walvis Bay as a potential landmark investment in Namibia’s emerging green hydrogen economy.
