Africa-Press – Namibia. The African Development Bank (AfDB) has approved a US$10-million (approximately N$190 million) loan to Hyphen Hydrogen Energy to support a green ammonia project valued at more than US$10 billion, positioning Namibia as a potential pioneer in the global green hydrogen sector.
The loan, sourced from the Sustainable Energy Fund for Africa (Sefa), will finance front-end engineering design studies for solar and wind generation, battery storage, electrolyser capacity and desalination infrastructure.
The AfDB says the funding will help de-risk the project and attract the large-scale investment required for development.
Sefa is a multi-donor fund providing catalytic finance, technical assistance and concessional instruments to unlock private-sector investment in renewable energy and energy efficiency.
The first phase of the project includes 3.75GW of renewable generation, battery storage, 1.5GW of electrolyser capacity and infrastructure such as desalination facilities, pipelines, transmission lines and expanded port facilities.
Once operational, the plant is expected to produce two million tonnes of green ammonia annually.
It will also support local socio-economic development under a 40-year concession agreement.
The project could avert five million tonnes of CO2 emissions per year and deploy 7.5GW of renewable energy capacity – more than 10 times Namibia’s current installed capacity. It is also expected to supply three million litres of desalinated water daily to Lüderitz.
AfDB country manager for Namibia and deputy director general for southern Africa Moono Mupotola says: “This is about far more than 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.”
“The African Development Bank’s approval of this pre-investment facility represents a strong vote of confidence in Hyphen’s project and in the broad ambitions of Namibia to develop one of the world’s most transformative green hydrogen projects,” Hyphen Hydrogen Energy chief executive Marco Raffinetti says.
“Sefa’s intervention is catalytic. By supporting these essential pre-investment activities, we are unlocking billions in project financing,” AfDB director for renewable energy and energy efficiency Daniel Schroth says.
The project is expected to create 15 000 construction jobs and 3 000 permanent positions, with 90% reserved for Namibians and 20% specifically for youth in a country where youth unemployment exceeds 38%.
The Hyphen project is considered a flagship of the government’s Southern Corridor Development Initiative and is expected to serve as a model for other African countries with strong renewable energy resources.
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