First green hydrogen plant cost set at N$271m

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First green hydrogen plant cost set at N$271m
First green hydrogen plant cost set at N$271m

Africa-Press – Namibia. NAMIBIA’s first green hydrogen production plant is expected to cost an estimated US$18 million, translating to roughly N$271 million at today’s currency exchange rate.

The production plant was launched early this week by the Ohlthaver & List (O&L) Group and CMB.TECH. According to the two companies, the plant, which is a demonstration hub for hydrogen applications, will be built in the Erongo region.

The construction will start this year and is expected to be operational by the end of next year. Depending on the results of the demonstration plant, a larger scale production plant will follow in the second phase, possibly using ammonia as transport fuel.

The joint venture, Cleanergy Namibia, will develop green hydrogen production projects in Namibia, including leading the green hydrogen production plant and demonstration hub, its first development in Namibia and the continent.

The two say the aim is to produce green hydrogen from solar power and distribute the clean fuel to heavy-duty applications like trucks, locomotives, mining equipment and ships.

The O&L Group executive chairperson, Sven Thieme, said one of the biggest concerns that will directly affect the quality of the future to be created is climate change.

He said the world is in a race to limit global warming and reach net-zero emissions by 2050, in accordance with the United Nations’ global roadmap, and one of the key shifts required to ensure a sustainable future includes the transition to clean energy solutions.

“While the move away from fossil fuels may take several paths, green hydrogen is one that shows tremendous potential in getting us there,” he said. He added that Namibia is a growing hub when it comes to the generation of renewable energy, be it through solar, wind or hydroelectric power.

“This is what makes our country optimally positioned to explore the generation of green hydrogen, or hydrogen that is generated using renewable electricity. With Namibia’s capacity to generate solar power in particular, the country has the potential to be at the forefront of green hydrogen development and progress towards greater energy independence,” Thieme added.

He further said because of these prospects, they established Cleanergy Namibia to explore green hydrogen generation through the country’s first green hydrogen demonstration plant.

“The demonstration plant could prove to be the first step in creating an entirely new industry in Namibia in addition to enabling knowledge transfer into the country; upskilling opportunities and creating employment; driving further research, including collaboration with the University of Namibia; and developing future off-take opportunities in sectors such as transportation, mining, heavy machinery, and power generation,” the executive director stated.

The chief executive of CMB.TECH, Alexander Saverys, said Namibia has the potential to produce green molecules (such as hydrogen and ammonia) on a large scale and at low cost.

He said green and affordable molecules are an essential part of the energy transition. “We hope to demonstrate that words can be turned into actions when it comes to green hydrogen projects,” he said.

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