Africa-Press – Namibia. THE African Development Bank (AfDB) has approved a N$182.5 million (US$10 million) loan to Hyphen Hydrogen Energy to support front-end engineering work for Namibia’s multibillion-dollar green hydrogen and ammonia project—an initiative expected to cost more than N$170 billion and position the country as a global leader in the emerging green hydrogen sector.
The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), will fund design studies for solar and wind generation, battery energy storage, electrolyser capacity and desalination infrastructure. AfDB says the financing will help de-risk the project and unlock the major investment needed to bring it to fruition.
SEFA, a multi-donor special fund, provides catalytic finance aimed at removing barriers to private sector investment in renewable energy and energy efficiency. It offers technical assistance and concessional finance to strengthen project pipelines and improve risk-return profiles.
The Hyphen project will tap into Namibia’s world-class solar and wind resources. Phase one includes 3.75 GW of renewable energy generation, battery storage, 1.5 GW of electrolyser capacity and supporting infrastructure such as desalination facilities, pipelines, transmission lines and expanded port facilities—all developed to high environmental and social standards.
Once operational, the project is expected to produce 2 million tonnes of green ammonia annually for export to key global markets. It will also support local economic development under a 40-year concession agreement and is projected to avoid 5 million tonnes of CO2 emissions per year—equivalent to removing more than one million cars from the road.
The development will deploy 7.5 GW of renewable energy, more than ten times Namibia’s current installed capacity, and supply 3 million litres of desalinated clean water daily to the water-scarce town of Lüderitz.
Moono Mupotola, AfDB Country Manager for Namibia and Deputy Director General for Southern Africa, said the initiative underscores Africa’s ability to lead in the global energy transition. “This is about demonstrating Africa’s capacity to create quality jobs for our youth and build prosperity while protecting our planet. Namibia is showing that Africa is not just participating in the green economy — we are defining it.”
Hyphen CEO Marco Raffinetti welcomed the approval, calling it a strong vote of confidence from the bank. “This facility will partially fund the technical design phase of the project on our journey to the final investment decision,” he said.
Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, described SEFA’s role as catalytic. “By supporting these essential pre-investment activities, we are unlocking billions in project financing,” he said.
The project is expected to create 15,000 construction jobs and 3,000 permanent roles, with 90% reserved for Namibians and at least 20% specifically targeting youth in a country where youth unemployment exceeds 38%.
Viewed as a flagship of the government’s Southern Corridor Development Initiative, the Hyphen project is expected to set a precedent for renewable hydrogen development across Africa.
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