Hyphen Hydrogen Energy and the Development Bank of Southern Africa (DBSA) have closed the €5m funding facility at the COP28 Climate Conference.
DBSA announced the plan to fund Hyphen Hydrogen Energy’s project in October 2023.
The €5m will go towards the partial funding of engineering, environmental, and socio-economic development workstreams related to the project’s development up to the final investment decision.
Hyphen Hydrogen Energy CEO Marco Raffinette said the collaboration and partnerships with African lending institutions will be critical to the success of the Hyphen project.
“This funding facility shows these partnerships in action. It will provide crucial funding for developing and integrating the project and, subsequently, the socio-economic development of Namibia,” Raffinette said.
According to Raffinette, Hyphen and the DBSA are aligned with the common purpose to drive the future of renewable energy in Namibia and beyond.
DBSA executive project preparation Catherine Koffman said the Hyphen Hydrogen project demonstrates the catalytic impact of the private sector and development capital collaboration.
Koffman further said that DBSA and Hyphen’s partnership will facilitate the creation of a new asset class in the energy sector with a profound and positive economic, social and environmental impact in Namibia and the region.
“Green Hydrogen is a versatile energy carrier vital for decarbonising key sectors of the economy, including hard-to-abate industries like steel and chemicals. The investment emphasizes the bank’s commitment to accelerating the transition to net zero and looks forward to a successful completion of the project,” Koffman said.
The DBSA is a government-owned development finance institution, established in 1983, with the mandate to promote economic growth as well as regional integration for sustainable development projects and programmes in South Africa, SADC and the wider Sub-Saharan Africa.
Its primary purpose is to promote economic development and growth, improve the quality of lives of people and promote regional integration through infrastructure, finance and development.
