Namibia selects preferred bidder for $9.4bn green hydrogen project

Richard Ewing

08-Nov-2021

LONDON (ICIS)–Plans for a $9.4bn green hydrogen project in Namibia have moved a step closer after the government issued a notice of award stating its intention to appoint HYPHEN Hydrogen Energy as preferred bidder.

The massive zero-carbon project has been earmarked for the Tsau//Khaeb national park and will ultimately produce 300,000 tonnes/year of green hydrogen, either as pure green hydrogen or in derivative form (green ammonia).

The announcement followed a competitive tender process and the conclusion of mandatory legislative processes, with HYPHEN set to get the right to construct and operate the project for 40 years.

The project is dependent on the successful conclusion of a feasibility study and sign-off from the government.

“The first phase, which is expected to enter production in 2026, will see the creation of 2GW of renewable electricity generation capacity to produce green hydrogen for conversion into green ammonia, at an estimated capital cost of $4.4bn,” said HYPHEN CEO, Marco Raffinetti.

“Further expansion phases in the late 2020s will expand combined renewable generation capacity to 5GW and 3GW of electrolyser capacity, increasing the combined total investment to $9.4bn.”

That huge investment figure is similar to the African country’s GDP. Project chiefs expect around 15,000 direct jobs to be created during the four-year construction of both phases, with a further 3,000 jobs created permanently during the operational phase,

In addition to taxes, HYPHEN will pay concession fees, royalties, a sovereign wealth fund contribution and an environmental levy to the government.

Specifically created to develop green hydrogen projects in Namibia for international, regional and domestic supply, HYPHEN is a joint venture between Nicholas Holdings Limited and ENERTRAG South Africa.

“The Tsau/Khaeb national park is among the top five locations in the world for low-cost hydrogen production, benefiting from a combination of co-located onshore wind and solar resources near the sea and land export routes to market,” Raffinetti added.

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